Question 40
POST_UTME_NOUN
•
2023
•
ECONOMICS
•
objective
The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has led to an increase in the price of agricultural inputs, which has resulted in a decrease in the quantity of agricultural output. U\sing the concept of opportunity \cost, explain why the government's policy has led to a decrease in agricultural output.
Answer Options
Correct Answer
A.
The government's policy has led to a decrease in the quantity of agricultural output because the opportunity \cost of producing more agricultural output is higher than the benefit of producing more.
B.
The government's policy has led to a decrease in the quantity of agricultural output because the opportunity \cost of producing more agricultural output is lower than the benefit of producing more.
C.
The government's policy has led to a decrease in the quantity of agricultural output because the opportunity \cost of producing more agricultural output is equal to the benefit of producing more.
D.
The government's policy has led to a decrease in the quantity of agricultural output because the opportunity \cost of producing more agricultural output is not relevant to the decision-making process.
Correct Answer
A
Correct Option:
The government's policy has led to a decrease in the quantity of agricultural output because the opportunity \cost of producing more agricultural output is higher than the benefit of producing more.
About This Question
This is
Post Utme Noun
2023
Economics
Question 40.
It is one of the
objective
questions from the
2023
Post Utme Noun
Economics
examination.