Post Utme Uniosun 2018 Economics Question 18

Practice objective / multiple choice question 18 from the 2018 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2018 Economics Objective / Multiple Choice
Question 18 POST_UTME_UNIOSUN • 2018 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase the production of a particular good. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the use of fertilizers. However, the policy also includes a provision to increase the price of the good by 20%. What is the likely effect of this policy on the production of the good?

Answer Options

A. The policy will lead to an increase in the production of the good and a decrease in the price of the good.
Correct Answer B. The policy will lead to a decrease in the production of the good and an increase in the price of the good.
C. The policy will have no effect on the production of the good and the price of the good.
D. The policy will lead to an increase in the production of the good and an increase in the price of the good.
Correct Answer
B
Correct Option:
The policy will lead to a decrease in the production of the good and an increase in the price of the good.

About This Question

This is Post Utme Uniosun 2018 Economics Question 18. It is one of the objective questions from the 2018 Post Utme Uniosun Economics examination.

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