Post Utme Unn 2020 Economics Question 26

Practice objective / multiple choice question 26 from the 2020 Post Utme Unn Economics examination.

Post Utme Unn 2020 Economics Objective / Multiple Choice
Question 26 POST_UTME_UNN • 2020 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase agricultural production. The policy involves providing subsidies to farmers who produce crops that are in high demand. However, the policy also involves increa\sing the price of fertilizers and other inputs. Assuming that the demand for the crops is perfectly inelastic, what will be the effect of the policy on the total revenue of farmers?

Answer Options

A. The total revenue of farmers will increase.
B. The total revenue of farmers will decrease.
Correct Answer C. The total revenue of farmers will remain the same.
D. The effect on total revenue is ambiguous.
Correct Answer
C
Correct Option:
The total revenue of farmers will remain the same.

About This Question

This is Post Utme Unn 2020 Economics Question 26. It is one of the objective questions from the 2020 Post Utme Unn Economics examination.

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