Post Utme Crawford University 2018 Economics Question 28

Practice objective / multiple choice question 28 from the 2018 Post Utme Crawford University Economics examination.

Post Utme Crawford University 2018 Economics Objective / Multiple Choice
Question 28 POST_UTME_CRAWFORD_UNIVERSITY • 2018 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase the production of a good. The policy includes providing subsidies to producers, improving infrastructure, and increa\sing access to credit. However, the policy has also led to an increase in the price of the good. U\sing the concept of supply and demand, explain why the government's policy may not be effective in increa\sing the production of the good.

Answer Options

A. The policy has increased the supply of the good, leading to a decrease in the price and an increase in production.
Correct Answer B. The policy has decreased the demand for the good, leading to a decrease in the price and a decrease in production.
C. The policy has no effect on the supply and demand of the good.
D. The policy has increased the demand for the good, leading to an increase in the price and an increase in production.
Correct Answer
B
Correct Option:
The policy has decreased the demand for the good, leading to a decrease in the price and a decrease in production.

About This Question

This is Post Utme Crawford University 2018 Economics Question 28. It is one of the objective questions from the 2018 Post Utme Crawford University Economics examination.

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