Post Utme Nile University 2018 Economics Question 10

Practice objective / multiple choice question 10 from the 2018 Post Utme Nile University Economics examination.

Post Utme Nile University 2018 Economics Objective / Multiple Choice
Question 10 POST_UTME_NILE_UNIVERSITY • 2018 • ECONOMICS • objective

The Nigerian government has implemented a policy to increase the production of rice to reduce imports. However, the policy has led to a significant increase in the price of rice. U\sing the concept of supply and demand, explain why the price of rice has increased.

Answer Options

A. The increase in price is due to the increase in demand for rice.
B. The increase in price is due to the increase in supply of rice.
Correct Answer C. The increase in price is due to the opportunity \cost of producing rice.
D. The increase in price is due to the increase in transportation \cost.
Correct Answer
C
Correct Option:
The increase in price is due to the opportunity \cost of producing rice.

About This Question

This is Post Utme Nile University 2018 Economics Question 10. It is one of the objective questions from the 2018 Post Utme Nile University Economics examination.

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