Post Utme Greenfield University 2024 Economics Question 16

Practice objective / multiple choice question 16 from the 2024 Post Utme Greenfield University Economics examination.

Post Utme Greenfield University 2024 Economics Objective / Multiple Choice
Question 16 POST_UTME_GREENFIELD_UNIVERSITY • 2024 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers by 20%. What is the likely effect of this policy on the agricultural sector?

Answer Options

A. The policy will lead to an increase in agricultural production and a decrease in the price of food.
Correct Answer B. The policy will lead to a decrease in agricultural production and an increase in the price of food.
C. The policy will have no effect on agricultural production and the price of food.
D. The policy will lead to an increase in agricultural production, but the price of food will remain the same.
Correct Answer
B
Correct Option:
The policy will lead to a decrease in agricultural production and an increase in the price of food.

About This Question

This is Post Utme Greenfield University 2024 Economics Question 16. It is one of the objective questions from the 2024 Post Utme Greenfield University Economics examination.

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