Post Utme Mountain Top University 2023 Economics Question 30

Practice objective / multiple choice question 30 from the 2023 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2023 Economics Objective / Multiple Choice
Question 30 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2023 • ECONOMICS • objective

A country is experiencing a recession due to a decrease in aggregate demand. The country's GDP is valued at $100 billion, and the recession is cau\sing a decrease in the country's GDP of 10%. What is the opportunity \cost of the recession?

Answer Options

Correct Answer A. The opportunity \cost is the value of the goods and services that could have been produced with the lost GDP.
B. The opportunity \cost is the value of the jobs that could have been created with the lost GDP.
C. The opportunity \cost is the value of the tax revenue that could have been collected with the lost GDP.
D. The opportunity \cost is the value of the public goods and services that could have been purchased with the lost GDP.
Correct Answer
A
Correct Option:
The opportunity \cost is the value of the goods and services that could have been produced with the lost GDP.

About This Question

This is Post Utme Mountain Top University 2023 Economics Question 30. It is one of the objective questions from the 2023 Post Utme Mountain Top University Economics examination.

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