Post Utme Uniport 2023 Economics Question 15

Practice objective / multiple choice question 15 from the 2023 Post Utme Uniport Economics examination.

Post Utme Uniport 2023 Economics Objective / Multiple Choice
Question 15 POST_UTME_UNIPORT • 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, improving irrigation systems, and increa\sing the availability of fertilizers. However, the policy has been criticized for being too expensive and not addres\sing the root causes of the problem. What is the opportunity \cost of implementing this policy?

Answer Options

A. The opportunity \cost is the reduction in the production of other crops due to the increased focus on rice production.
B. The opportunity \cost is the increase in the price of rice due to the subsidies provided to farmers.
Correct Answer C. The opportunity \cost is the reduction in the government's revenue due to the increased exp\enditure on the policy.
D. The opportunity \cost is the decrease in the quality of life of the people due to the increased focus on rice production.
Correct Answer
C
Correct Option:
The opportunity \cost is the reduction in the government's revenue due to the increased exp\enditure on the policy.

About This Question

This is Post Utme Uniport 2023 Economics Question 15. It is one of the objective questions from the 2023 Post Utme Uniport Economics examination.

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