Post Utme Covenant University 2023 Economics Question 37

Practice objective / multiple choice question 37 from the 2023 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2023 Economics Objective / Multiple Choice
Question 37 POST_UTME_COVENANT_UNIVERSITY • 2023 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase the production of electricity in the country. The policy includes increa\sing the importation of electricity-generating equipment and providing subsidies to electricity-generating companies. However, the policy has led to an increase in the price of electricity in the country. What is the likely effect of this policy on the Nigerian economy?

Answer Options

A. An increase in the production of electricity in Nigeria will lead to a decrease in the price of electricity in the country, resulting in an increase in the demand for electricity.
Correct Answer B. The policy will lead to an increase in the production of electricity in Nigeria, resulting in an increase in the price of electricity in the country.
C. The policy will lead to a decrease in the production of electricity in Nigeria, resulting in a decrease in the price of electricity in the country.
D. The policy will have no effect on the production of electricity in Nigeria.
Correct Answer
B
Correct Option:
The policy will lead to an increase in the production of electricity in Nigeria, resulting in an increase in the price of electricity in the country.

About This Question

This is Post Utme Covenant University 2023 Economics Question 37. It is one of the objective questions from the 2023 Post Utme Covenant University Economics examination.

View More Post Utme Covenant University 2023 Economics Questions More Post Utme Covenant University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support