Post Utme Lead City University 2025 Economics Question 8

Practice objective / multiple choice question 8 from the 2025 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2025 Economics Objective / Multiple Choice
Question 8 POST_UTME_LEAD_CITY_UNIVERSITY • 2025 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase the production of electricity in the country. The policy includes investing in new power plants, improving the transmission and distribution infrastructure, and promoting the use of renewable energy sources. However, the policy has been criticized for its potential impact on the environment and the displacement of local communities. What is the opportunity \cost of implementing this policy?

Answer Options

A. The opportunity \cost is the increase in electricity production, which may lead to a decrease in the production of other energy sources.
Correct Answer B. The opportunity \cost is the environmental degradation and displacement of local communities, which may lead to social and economic \costs.
C. The opportunity \cost is the increase in the price of electricity, which may lead to a decrease in the demand for electricity.
D. The opportunity \cost is the decrease in the production of other energy sources, which may lead to a decrease in the income of energy producers.
Correct Answer
B
Correct Option:
The opportunity \cost is the environmental degradation and displacement of local communities, which may lead to social and economic \costs.

About This Question

This is Post Utme Lead City University 2025 Economics Question 8. It is one of the objective questions from the 2025 Post Utme Lead City University Economics examination.

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