Post Utme Madonna University 2023 Economics Question 38

Practice objective / multiple choice question 38 from the 2023 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2023 Economics Objective / Multiple Choice
Question 38 POST_UTME_MADONNA_UNIVERSITY • 2023 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase the production of agriculture in the country. The policy includes providing subsidies to farmers, improving irrigation facilities, and increa\sing the availability of fertilizers. However, the policy has also led to an increase in the price of agricultural products, which has affected the purcha\sing power of the poor. Analyze the impact of the policy on the economy, considering the law of demand and supply.

Answer Options

Correct Answer A. The policy has increased the production of agriculture, but has also led to an increase in the price of agricultural products, which has affected the purcha\sing power of the poor.
B. The policy has decreased the production of agriculture, but has also led to a decrease in the price of agricultural products, which has improved the purcha\sing power of the poor.
C. The policy has increased the production of agriculture, but has also led to a decrease in the price of agricultural products, which has improved the purcha\sing power of the poor.
D. The policy has decreased the production of agriculture, but has also led to an increase in the price of agricultural products, which has affected the purcha\sing power of the poor.
Correct Answer
A
Correct Option:
The policy has increased the production of agriculture, but has also led to an increase in the price of agricultural products, which has affected the purcha\sing power of the poor.

About This Question

This is Post Utme Madonna University 2023 Economics Question 38. It is one of the objective questions from the 2023 Post Utme Madonna University Economics examination.

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