Post Utme Eksu 2019 Economics Question 17

Practice objective / multiple choice question 17 from the 2019 Post Utme Eksu Economics examination.

Post Utme Eksu 2019 Economics Objective / Multiple Choice
Question 17 POST_UTME_EKSU • 2019 • ECONOMICS • objective

Agricultural subsidies in Nigeria are designed to increase crop yields and reduce poverty. However, some critics argue that these subsidies distort the market and lead to overproduction. What is the likely effect of agricultural subsidies on the supply curve of crops?

Answer Options

A. The supply curve will shift to the left, reducing the equilibrium quantity.
Correct Answer B. The supply curve will shift to the right, increa\sing the equilibrium quantity.
C. The supply curve will remain unchanged, and the equilibrium quantity will decrease.
D. The supply curve will shift to the left, increa\sing the equilibrium quantity.
Correct Answer
B
Correct Option:
The supply curve will shift to the right, increa\sing the equilibrium quantity.

About This Question

This is Post Utme Eksu 2019 Economics Question 17. It is one of the objective questions from the 2019 Post Utme Eksu Economics examination.

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