Question 23
POST_UTME_COVENANT_UNIVERSITY
•
2023
•
ECONOMICS
•
objective
A government is considering a policy to increase agricultural production in a rural area. U\sing the concept of opportunity \cost, explain how the government can use the opportunity \cost of labor to determine the optimal level of agricultural production.
Answer Options
Correct Answer
A.
The government can use the opportunity \cost of labor to determine the optimal level of agricultural production by calculating the marginal product of labor and comparing it to the wage rate.
B.
The government can use the opportunity \cost of labor to determine the optimal level of agricultural production by calculating the average product of labor and comparing it to the wage rate.
C.
The government can use the opportunity \cost of labor to determine the optimal level of agricultural production by calculating the total product of labor and comparing it to the wage rate.
D.
The government can use the opportunity \cost of labor to determine the optimal level of agricultural production by calculating the marginal product of capital and comparing it to the interest rate.
Correct Answer
A
Correct Option:
The government can use the opportunity \cost of labor to determine the optimal level of agricultural production by calculating the marginal product of labor and comparing it to the wage rate.
About This Question
This is
Post Utme Covenant University
2023
Economics
Question 23.
It is one of the
objective
questions from the
2023
Post Utme Covenant University
Economics
examination.