Post Utme Madonna University 2023 Economics Question 40

Practice objective / multiple choice question 40 from the 2023 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2023 Economics Objective / Multiple Choice
Question 40 POST_UTME_MADONNA_UNIVERSITY • 2023 • 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, improving irrigation facilities, and increa\sing the availability of fertilizers. However, the policy has also led to an increase in the price of rice, 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 rice, but has also led to an increase in the price of rice, which has affected the purcha\sing power of the poor.
B. The policy has decreased the production of rice, but has also led to a decrease in the price of rice, which has improved the purcha\sing power of the poor.
C. The policy has increased the production of rice, but has also led to a decrease in the price of rice, which has improved the purcha\sing power of the poor.
D. The policy has decreased the production of rice, but has also led to an increase in the price of rice, which has affected the purcha\sing power of the poor.
Correct Answer
A
Correct Option:
The policy has increased the production of rice, but has also led to an increase in the price of rice, which has affected the purcha\sing power of the poor.

About This Question

This is Post Utme Madonna University 2023 Economics Question 40. It is one of the objective questions from the 2023 Post Utme Madonna University Economics examination.

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