Post Utme Uniben 2025 Economics Question 35

Practice objective / multiple choice question 35 from the 2025 Post Utme Uniben Economics examination.

Post Utme Uniben 2025 Economics Objective / Multiple Choice
Question 35 POST_UTME_UNIBEN • 2025 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to encourage industrialization. The policy includes providing subsidies to industries, improving infrastructure, and increa\sing access to credit. However, the policy also includes a provision that requires industries to pay a tax on their profits. What is the likely effect of this provision on the industrial sector?

Answer Options

A. The provision will lead to an increase in industrial production, as industries will have access to more resources and a guaranteed market.
Correct Answer B. The provision will lead to a decrease in industrial production, as industries will be forced to pay a tax on their profits.
C. The provision will have no effect on industrial production, as industries will still be able to produce goods and services at a profit.
D. The provision will lead to an increase in industrial production, but only in the short term, as industries will eventually adapt to the new policy.
Correct Answer
B
Correct Option:
The provision will lead to a decrease in industrial production, as industries will be forced to pay a tax on their profits.

About This Question

This is Post Utme Uniben 2025 Economics Question 35. It is one of the objective questions from the 2025 Post Utme Uniben Economics examination.

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