Post Utme Madonna University 2020 Economics Question 37

Practice objective / multiple choice question 37 from the 2020 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2020 Economics Objective / Multiple Choice
Question 37 POST_UTME_MADONNA_UNIVERSITY • 2020 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase the production of rice. The policy includes providing subsidies to farmers and increa\sing the import duty on rice. What is the likely effect of this policy on the domestic price of rice?

Answer Options

A. The domestic price of rice will decrease
Correct Answer B. The domestic price of rice will increase
C. The domestic price of rice will remain the same
D. The domestic price of rice will fluctuate
Correct Answer
B
Correct Option:
The domestic price of rice will increase

About This Question

This is Post Utme Madonna University 2020 Economics Question 37. It is one of the objective questions from the 2020 Post Utme Madonna University Economics examination.

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