Post Utme Nile University 2023 Economics Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Nile University Economics examination.

Post Utme Nile University 2023 Economics Objective / Multiple Choice
Question 16 POST_UTME_NILE_UNIVERSITY • 2023 • ECONOMICS • objective

The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has been criticized for being ineffective due to the high \cost of production. U\sing the concept of opportunity \cost, explain why the policy may not be effective in increa\sing agricultural production.

Answer Options

A. The policy may not be effective because the subsidies are not sufficient to cover the high \cost of production.
Correct Answer B. The policy may not be effective because the subsidies are not targeted at the most productive farmers.
C. The policy may not be effective because the subsidies are not aligned with the market demand for agricultural products.
D. The policy may not be effective because the subsidies are not sustainable in the long run.
Correct Answer
B
Correct Option:
The policy may not be effective because the subsidies are not targeted at the most productive farmers.

About This Question

This is Post Utme Nile University 2023 Economics Question 16. It is one of the objective questions from the 2023 Post Utme Nile University Economics examination.

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