Post Utme Igbinedion University 2022 Economics Question 37

Practice objective / multiple choice question 37 from the 2022 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2022 Economics Objective / Multiple Choice
Question 37 POST_UTME_IGBINEDION_UNIVERSITY • 2022 • ECONOMICS • objective

A country is experiencing a recession, and the government decides to implement a fiscal policy to stimulate economic growth. The government increases government sp\ending and cuts taxes to boost aggregate demand. What is the effect of this fiscal policy on the opportunity \cost of producing one more unit of a good?

Answer Options

Correct Answer A. The opportunity \cost decreases
B. The opportunity \cost remains the same
C. The opportunity \cost increases
D. The opportunity \cost becomes negative
Correct Answer
A
Correct Option:
The opportunity \cost decreases

About This Question

This is Post Utme Igbinedion University 2022 Economics Question 37. It is one of the objective questions from the 2022 Post Utme Igbinedion University Economics examination.

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