Post Utme Covenant University 2023 Economics Question 21

Practice objective / multiple choice question 21 from the 2023 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2023 Economics Objective / Multiple Choice
Question 21 POST_UTME_COVENANT_UNIVERSITY • 2023 • ECONOMICS • objective

Consider a country with a mixed economy, where the government plays a significant role in the production and distribution of goods and services. U\sing the concept of returns to scale, explain how the government can use economies of scale to increase efficiency and reduce \costs in the production of a public good.

Answer Options

Correct Answer A. The government can use economies of scale to increase efficiency and reduce \costs by producing a large quantity of the public good, thereby reducing the average \cost per unit.
B. The government can use economies of scale to increase efficiency and reduce \costs by outsourcing the production of the public good to private companies.
C. The government can use economies of scale to increase efficiency and reduce \costs by u\sing advanced techno\logy to increase productivity.
D. The government can use economies of scale to increase efficiency and reduce \costs by reducing the quality of the public good.
Correct Answer
A
Correct Option:
The government can use economies of scale to increase efficiency and reduce \costs by producing a large quantity of the public good, thereby reducing the average \cost per unit.

About This Question

This is Post Utme Covenant University 2023 Economics Question 21. It is one of the objective questions from the 2023 Post Utme Covenant University Economics examination.

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