Post Utme Igbinedion University 2021 Economics Question 1

Practice objective / multiple choice question 1 from the 2021 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2021 Economics Objective / Multiple Choice
Question 1 POST_UTME_IGBINEDION_UNIVERSITY • 2021 • 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 the use of fertilizers. However, the policy also includes a provision to increase the price of fertilizers by 20%. What is the opportunity \cost of this policy?

Answer Options

Correct Answer A. The increase in the price of fertilizers will lead to a decrease in the quantity of fertilizers demanded by farmers.
B. The increase in the price of fertilizers will lead to an increase in the quantity of fertilizers demanded by farmers.
C. The increase in the price of fertilizers will lead to a decrease in the quantity of fertilizers supplied by farmers.
D. The increase in the price of fertilizers will lead to an increase in the quantity of fertilizers supplied by farmers.
Correct Answer
A
Correct Option:
The increase in the price of fertilizers will lead to a decrease in the quantity of fertilizers demanded by farmers.

About This Question

This is Post Utme Igbinedion University 2021 Economics Question 1. It is one of the objective questions from the 2021 Post Utme Igbinedion University Economics examination.

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