Post Utme Covenant University 2023 Economics Question 31

Practice objective / multiple choice question 31 from the 2023 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2023 Economics Objective / Multiple Choice
Question 31 POST_UTME_COVENANT_UNIVERSITY • 2023 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers and increa\sing the importation of rice. However, the policy has led to a decrease in the price of rice in the international market. What is the likely effect of this policy on the Nigerian economy?

Answer Options

A. An increase in the production of rice in Nigeria will lead to a decrease in the price of rice in the international market, resulting in a decrease in the revenue of Nigerian farmers.
Correct Answer B. The policy will lead to an increase in the production of rice in Nigeria, resulting in an increase in the revenue of Nigerian farmers.
C. The policy will lead to a decrease in the production of rice in Nigeria, resulting in a decrease in the revenue of Nigerian farmers.
D. The policy will have no effect on the production of rice in Nigeria.
Correct Answer
B
Correct Option:
The policy will lead to an increase in the production of rice in Nigeria, resulting in an increase in the revenue of Nigerian farmers.

About This Question

This is Post Utme Covenant University 2023 Economics Question 31. It is one of the objective questions from the 2023 Post Utme Covenant University Economics examination.

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