Post Utme Madonna University 2024 Economics Question 26

Practice objective / multiple choice question 26 from the 2024 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2024 Economics Objective / Multiple Choice
Question 26 POST_UTME_MADONNA_UNIVERSITY • 2024 • ECONOMICS • objective

The government of a country has decided to implement a policy of price control to reduce inflation. However, this policy has led to a shortage of essential goods. U\sing the concept of opportunity \cost, explain the trade-off between the reduction in inflation and the shortage of essential goods.

Answer Options

A. The reduction in inflation is the opportunity \cost of the shortage of essential goods.
Correct Answer B. The shortage of essential goods is the opportunity \cost of the reduction in inflation.
C. The reduction in inflation and the shortage of essential goods are not related.
D. The opportunity \cost is the reduction in the s\tandard of living.
Correct Answer
B
Correct Option:
The shortage of essential goods is the opportunity \cost of the reduction in inflation.

About This Question

This is Post Utme Madonna University 2024 Economics Question 26. It is one of the objective questions from the 2024 Post Utme Madonna University Economics examination.

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