Post Utme Noun 2023 Economics Question 44

Practice objective / multiple choice question 44 from the 2023 Post Utme Noun Economics examination.

Post Utme Noun 2023 Economics Objective / Multiple Choice
Question 44 POST_UTME_NOUN • 2023 • ECONOMICS • objective

The Nigerian government has implemented a policy to increase the production of a particular good. The policy has led to an increase in the price of the good, which has resulted in a decrease in the quantity demanded. U\sing the concept of opportunity \cost, explain why the government's policy has led to a decrease in the quantity demanded.

Answer Options

Correct Answer A. The government's policy has led to a decrease in the quantity demanded because the opportunity \cost of producing more of the good is higher than the benefit of producing more.
B. The government's policy has led to a decrease in the quantity demanded because the opportunity \cost of producing more of the good is lower than the benefit of producing more.
C. The government's policy has led to a decrease in the quantity demanded because the opportunity \cost of producing more of the good is equal to the benefit of producing more.
D. The government's policy has led to a decrease in the quantity demanded because the opportunity \cost of producing more of the good 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 demanded because the opportunity \cost of producing more of the good is higher than the benefit of producing more.

About This Question

This is Post Utme Noun 2023 Economics Question 44. It is one of the objective questions from the 2023 Post Utme Noun Economics examination.

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