Post Utme Ims U 2021 Economics Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Ims U Economics examination.

Post Utme Ims U 2021 Economics Objective / Multiple Choice
Question 21 POST_UTME_IMS_U • 2021 • ECONOMICS • objective

The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has led to an increase in the price of agricultural inputs, which has reduced the profit margins of farmers. U\sing the concept of opportunity \cost, explain why the government's policy may not be effective in increa\sing agricultural production.

Answer Options

Correct Answer A. The policy has increased the opportunity \cost of farming, making it less profitable for farmers.
B. The policy has reduced the opportunity \cost of farming, making it more profitable for farmers.
C. The policy has had no effect on the opportunity \cost of farming.
D. The policy has increased the opportunity \cost of farming, but this has been offset by the increase in subsidies.
Correct Answer
A
Correct Option:
The policy has increased the opportunity \cost of farming, making it less profitable for farmers.

About This Question

This is Post Utme Ims U 2021 Economics Question 21. It is one of the objective questions from the 2021 Post Utme Ims U Economics examination.

View More Post Utme Ims U 2021 Economics Questions More Post Utme Ims U Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support