Post Utme Osustech 2018 Economics Question 21

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

Post Utme Osustech 2018 Economics Objective / Multiple Choice
Question 21 POST_UTME_OSUSTECH • 2018 • ECONOMICS • objective

Consider a country with a mixed economy, where the government plays a significant role in the production and distribution of goods and services. U\sing the concept of returns to scale, explain why the government might choose to increase the production of a particular good, even if it is not profitable in the short run.

Answer Options

A. The government wants to increase the production of the good to meet the increa\sing demand from the growing population.
B. The government wants to increase the production of the good to reduce the unemployment rate in the country.
Correct Answer C. The government wants to increase the production of the good to increase the country's GDP.
D. The government wants to increase the production of the good to reduce the country's trade deficit.
Correct Answer
C
Correct Option:
The government wants to increase the production of the good to increase the country's GDP.

About This Question

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

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