Post Utme Summit University 2022 Economics Question 34

Practice objective / multiple choice question 34 from the 2022 Post Utme Summit University Economics examination.

Post Utme Summit University 2022 Economics Objective / Multiple Choice
Question 34 POST_UTME_SUMMIT_UNIVERSITY • 2022 • ECONOMICS • objective

The government of Nigeria has introduced a new policy aimed at increa\sing agricultural production. The policy includes a subsidy of ₦50 per unit of fertilizer. U\sing the concept of elasticity of supply, explain why the policy may not achieve its int\ended goal.

Answer Options

A. The policy will lead to an increase in the quantity of fertilizer supplied, resulting in an increase in agricultural production.
Correct Answer B. The policy will lead to a decrease in the quantity of fertilizer supplied, resulting in a decrease in agricultural production.
C. The policy will have no effect on the quantity of fertilizer supplied.
D. The policy will lead to an increase in the price of fertilizer, resulting in a decrease in agricultural production.
Correct Answer
B
Correct Option:
The policy will lead to a decrease in the quantity of fertilizer supplied, resulting in a decrease in agricultural production.

About This Question

This is Post Utme Summit University 2022 Economics Question 34. It is one of the objective questions from the 2022 Post Utme Summit University Economics examination.

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