Post Utme Uniben 2025 Economics Question 31

Practice objective / multiple choice question 31 from the 2025 Post Utme Uniben Economics examination.

Post Utme Uniben 2025 Economics Objective / Multiple Choice
Question 31 POST_UTME_UNIBEN • 2025 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to encourage agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision that requires farmers to sell their produce to the government at a fixed price. What is the likely effect of this provision on the agricultural sector?

Answer Options

A. The provision will lead to an increase in agricultural production, as farmers will have access to more resources and a guaranteed market.
Correct Answer B. The provision will lead to a decrease in agricultural production, as farmers will be forced to sell their produce at a price that is lower than the market price.
C. The provision will have no effect on agricultural production, as farmers will still be able to sell their produce at the market price.
D. The provision will lead to an increase in agricultural production, but only in the short term, as farmers will eventually adapt to the new policy.
Correct Answer
B
Correct Option:
The provision will lead to a decrease in agricultural production, as farmers will be forced to sell their produce at a price that is lower than the market price.

About This Question

This is Post Utme Uniben 2025 Economics Question 31. It is one of the objective questions from the 2025 Post Utme Uniben Economics examination.

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