Post Utme Greenfield University 2024 Economics Question 18

Practice objective / multiple choice question 18 from the 2024 Post Utme Greenfield University Economics examination.

Post Utme Greenfield University 2024 Economics Objective / Multiple Choice
Question 18 POST_UTME_GREENFIELD_UNIVERSITY • 2024 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase industrial production. The policy includes providing subsidies to industries, improving infrastructure, and increa\sing access to credit. However, the policy also includes a provision to increase the price of raw materials by 15%. What is the likely effect of this policy on the industrial sector?

Answer Options

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

About This Question

This is Post Utme Greenfield University 2024 Economics Question 18. It is one of the objective questions from the 2024 Post Utme Greenfield University Economics examination.

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