Post Utme Oau 2018 Economics Question 21

Practice objective / multiple choice question 21 from the 2018 Post Utme Oau Economics examination.

Post Utme Oau 2018 Economics Objective / Multiple Choice
Question 21 POST_UTME_OAU • 2018 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the availability of fertilizers. However, the policy has been criticized for being too expensive and not addres\sing the root causes of the problem. Analyze the policy u\sing the concepts of opportunity \cost and Pareto optimality.

Answer Options

A. The policy is a good example of Pareto optimality because it benefits the majority of the population.
B. The policy is a bad example of Pareto optimality because it benefits only a few farmers.
Correct Answer C. The policy is a good example of opportunity \cost because it involves giving up other impor\tant activities to produce more rice.
D. The policy is a bad example of opportunity \cost because it does not involve giving up other impor\tant activities.
Correct Answer
C
Correct Option:
The policy is a good example of opportunity \cost because it involves giving up other impor\tant activities to produce more rice.

About This Question

This is Post Utme Oau 2018 Economics Question 21. It is one of the objective questions from the 2018 Post Utme Oau Economics examination.

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