Post Utme Unilorin 2023 Economics Question 11

Practice objective / multiple choice question 11 from the 2023 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2023 Economics Objective / Multiple Choice
Question 11 POST_UTME_UNILORIN • 2023 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase the production of rice in the country. The policy includes providing subsidies to farmers and increa\sing the import duty on rice. U\sing the concept of elasticity of demand, explain why the government's policy may not be effective in increa\sing rice production.

Answer Options

Correct Answer A. The policy may not be effective because the demand for rice is inelastic, meaning that a small change in price will not lead to a significant change in quantity demanded.
B. The policy may not be effective because the supply of rice is inelastic, meaning that a small change in price will not lead to a significant change in quantity supplied.
C. The policy may not be effective because the government's policy may lead to a decrease in the quality of rice produced, which may not be acceptable to consumers.
D. The policy may not be effective because the government's policy may lead to a decrease in the quantity of rice produced, due to the high \cost of production.
Correct Answer
A
Correct Option:
The policy may not be effective because the demand for rice is inelastic, meaning that a small change in price will not lead to a significant change in quantity demanded.

About This Question

This is Post Utme Unilorin 2023 Economics Question 11. It is one of the objective questions from the 2023 Post Utme Unilorin Economics examination.

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