Post Utme Madonna University 2018 Economics Question 24

Practice objective / multiple choice question 24 from the 2018 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2018 Economics Objective / Multiple Choice
Question 24 POST_UTME_MADONNA_UNIVERSITY • 2018 • ECONOMICS • objective

The Nigerian government has implemented a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers by 20%. What is the likely effect of this policy on the agricultural sector?

Answer Options

A. The policy will lead to an increase in agricultural production and a decrease in the price of fertilizers.
Correct Answer B. The policy will lead to a decrease in agricultural production and an increase in the price of fertilizers.
C. The policy will have no effect on agricultural production and the price of fertilizers.
D. The policy will lead to an increase in agricultural production and an increase in the price of fertilizers.
Correct Answer
B
Correct Option:
The policy will lead to a decrease in agricultural production and an increase in the price of fertilizers.

About This Question

This is Post Utme Madonna University 2018 Economics Question 24. It is one of the objective questions from the 2018 Post Utme Madonna University Economics examination.

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