Post Utme Mountain Top University 2025 Economics Question 1

Practice objective / multiple choice question 1 from the 2025 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2025 Economics Objective / Multiple Choice
Question 1 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2025 • 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 and investing in irrigation infrastructure. However, the policy has also led to an increase in the price of rice in the international market. U\sing the concept of opportunity \cost, explain why the government's policy may not be effective in increa\sing rice production in the country.

Answer Options

Correct Answer A. The government's policy has led to an increase in the price of rice in the international market, making it less competitive for Nigerian farmers.
B. The government's policy has led to an increase in the production of rice in the country, but the increased production has not been matched by an increase in demand.
C. The government's policy has led to an increase in the production of rice in the country, but the increased production has not been matched by an increase in the quality of the rice.
D. The government's policy has led to an increase in the production of rice in the country, but the increased production has not been matched by an increase in the price of rice in the country.
Correct Answer
A
Correct Option:
The government's policy has led to an increase in the price of rice in the international market, making it less competitive for Nigerian farmers.

About This Question

This is Post Utme Mountain Top University 2025 Economics Question 1. It is one of the objective questions from the 2025 Post Utme Mountain Top University Economics examination.

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