Post Utme Lead City University 2021 Economics Question 16

Practice objective / multiple choice question 16 from the 2021 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2021 Economics Objective / Multiple Choice
Question 16 POST_UTME_LEAD_CITY_UNIVERSITY • 2021 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase the production of rice through irrigation. However, the policy has led to a significant increase in the price of rice. U\sing the concept of opportunity \cost, explain why the price of rice has increased.

Answer Options

A. The increase in price is due to the increase in demand for rice.
B. The increase in price is due to the increase in supply of rice.
Correct Answer C. The increase in price is due to the opportunity \cost of producing rice through irrigation.
D. The increase in price is due to the increase in transportation \costs.
Correct Answer
C
Correct Option:
The increase in price is due to the opportunity \cost of producing rice through irrigation.

About This Question

This is Post Utme Lead City University 2021 Economics Question 16. It is one of the objective questions from the 2021 Post Utme Lead City University Economics examination.

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