Post Utme Mountain Top University 2025 Economics Question 3

Practice objective / multiple choice question 3 from the 2025 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2025 Economics Objective / Multiple Choice
Question 3 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2025 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase the production of electricity in the country. The policy includes investing in new power plants and increa\sing the efficiency of existing power plants. However, the policy has also led to an increase in the price of electricity in the country. U\sing the concept of elasticity of demand, explain why the government's policy may not be effective in increa\sing electricity production in the country.

Answer Options

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

About This Question

This is Post Utme Mountain Top University 2025 Economics Question 3. It is one of the objective questions from the 2025 Post Utme Mountain Top University Economics examination.

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