Post Utme Unilorin 2021 Economics Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2021 Economics Objective / Multiple Choice
Question 6 POST_UTME_UNILORIN • 2021 • ECONOMICS • objective

A government plans to reduce poverty by increa\sing the minimum wage. However, this increase may lead to higher production \costs for firms, which could result in higher prices for consumers. U\sing the concept of opportunity \cost, explain why the government's plan may not be effective in reducing poverty.

Answer Options

Correct Answer A. The increase in minimum wage will lead to higher production \costs, which will be passed on to consumers in the form of higher prices, thereby reducing the purcha\sing power of the poor.
B. The government's plan will lead to a decrease in the opportunity \cost of labor, cau\sing firms to hire more workers and reduce unemployment.
C. The increase in minimum wage will lead to a decrease in the opportunity \cost of leisure, cau\sing people to work less and enjoy more leisure time.
D. The government's plan will lead to a decrease in the opportunity \cost of education, cau\sing people to invest more in education and reduce poverty.
Correct Answer
A
Correct Option:
The increase in minimum wage will lead to higher production \costs, which will be passed on to consumers in the form of higher prices, thereby reducing the purcha\sing power of the poor.

About This Question

This is Post Utme Unilorin 2021 Economics Question 6. It is one of the objective questions from the 2021 Post Utme Unilorin Economics examination.

View More Post Utme Unilorin 2021 Economics Questions More Post Utme Unilorin Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support