Post Utme Unilorin 2023 Economics Question 12

Practice objective / multiple choice question 12 from the 2023 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2023 Economics Objective / Multiple Choice
Question 12 POST_UTME_UNILORIN • 2023 • ECONOMICS • objective

The Nigerian government has introduced a new policy to increase the production of maize in the country. The policy includes providing subsidies to farmers and increa\sing the import duty on maize. U\sing the concept of elasticity of supply, explain why the government's policy may be effective in increa\sing maize production.

Answer Options

Correct Answer A. The policy may be effective because the supply of maize is elastic, meaning that a small change in price will lead to a significant change in quantity supplied.
B. The policy may be effective because the demand for maize is elastic, meaning that a small change in price will lead to a significant change in quantity demanded.
C. The policy may be effective because the government's policy may lead to a decrease in the \cost of production, which may lead to an increase in quantity supplied.
D. The policy may be effective because the government's policy may lead to an increase in the quality of maize produced, which may lead to an increase in quantity demanded.
Correct Answer
A
Correct Option:
The policy may be effective because the supply of maize is elastic, meaning that a small change in price will lead to a significant change in quantity supplied.

About This Question

This is Post Utme Unilorin 2023 Economics Question 12. It is one of the objective questions from the 2023 Post Utme Unilorin Economics examination.

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