Post Utme Unilorin 2023 Economics Question 13

Practice objective / multiple choice question 13 from the 2023 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2023 Economics Objective / Multiple Choice
Question 13 POST_UTME_UNILORIN • 2023 • ECONOMICS • objective

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

Answer Options

Correct Answer A. The policy may not be effective because the \cost of production of wheat is high, and the government's policy may not be able to cover the \costs.
B. The policy may not be effective because the revenue generated from the sale of wheat is low, and the government's policy may not be able to generate enough revenue to cover the \costs.
C. The policy may not be effective because the government's policy may lead to a decrease in the quality of wheat 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 wheat produced, due to the high \cost of production.
Correct Answer
A
Correct Option:
The policy may not be effective because the \cost of production of wheat is high, and the government's policy may not be able to cover the \costs.

About This Question

This is Post Utme Unilorin 2023 Economics Question 13. It is one of the objective questions from the 2023 Post Utme Unilorin Economics examination.

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