Post Utme Lead City University 2025 Economics Question 6

Practice objective / multiple choice question 6 from the 2025 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2025 Economics Objective / Multiple Choice
Question 6 POST_UTME_LEAD_CITY_UNIVERSITY • 2025 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, investing in irrigation infrastructure, and promoting the use of high-yielding rice varieties. However, the policy has been criticized for its potential impact on the environment and the displacement of small-scale farmers. What is the opportunity \cost of implementing this policy?

Answer Options

A. The opportunity \cost is the increase in rice production, which may lead to a decrease in the production of other crops.
Correct Answer B. The opportunity \cost is the environmental degradation and displacement of small-scale farmers, which may lead to social and economic \costs.
C. The opportunity \cost is the increase in the price of rice, which may lead to a decrease in the demand for rice.
D. The opportunity \cost is the decrease in the production of other crops, which may lead to a decrease in the income of farmers.
Correct Answer
B
Correct Option:
The opportunity \cost is the environmental degradation and displacement of small-scale farmers, which may lead to social and economic \costs.

About This Question

This is Post Utme Lead City University 2025 Economics Question 6. It is one of the objective questions from the 2025 Post Utme Lead City University Economics examination.

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