Post Utme Summit University 2021 Economics Question 11

Practice objective / multiple choice question 11 from the 2021 Post Utme Summit University Economics examination.

Post Utme Summit University 2021 Economics Objective / Multiple Choice
Question 11 POST_UTME_SUMMIT_UNIVERSITY • 2021 • 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. U\sing the concept of opportunity \cost, explain why the policy may not be effective in increa\sing agricultural production.

Answer Options

Correct Answer A. The policy has increased the opportunity \cost of farming, making it less attractive to farmers.
B. The policy has decreased the opportunity \cost of farming, making it more attractive to farmers.
C. The policy has no effect on the opportunity \cost of farming.
D. The policy has increased the opportunity \cost of farming, but it has also increased the revenue of farmers.
Correct Answer
A
Correct Option:
The policy has increased the opportunity \cost of farming, making it less attractive to farmers.

About This Question

This is Post Utme Summit University 2021 Economics Question 11. It is one of the objective questions from the 2021 Post Utme Summit University Economics examination.

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