Post Utme Unn 2023 Economics Question 6

Practice objective / multiple choice question 6 from the 2023 Post Utme Unn Economics examination.

Post Utme Unn 2023 Economics Objective / Multiple Choice
Question 6 POST_UTME_UNN • 2023 • ECONOMICS • objective

The government of a developing country has decided to implement a policy of import substitution to promote domestic production and reduce dep\endence on foreign goods. However, the policy has led to a significant increase in the prices of essential goods. U\sing the concept of opportunity \cost, explain why the policy may not be effective in achieving its objectives.

Answer Options

A. The policy may lead to a decrease in the opportunity \cost of producing essential goods, making them more affordable for consumers.
B. The policy may lead to a decrease in the opportunity \cost of producing non-essential goods, making them more attractive to consumers.
C. The policy may lead to a decrease in the opportunity \cost of importing essential goods, making them more affordable for consumers.
Correct Answer D. The policy may lead to an increase in the opportunity \cost of producing essential goods, making them less affordable for consumers.
Correct Answer
D
Correct Option:
The policy may lead to an increase in the opportunity \cost of producing essential goods, making them less affordable for consumers.

About This Question

This is Post Utme Unn 2023 Economics Question 6. It is one of the objective questions from the 2023 Post Utme Unn Economics examination.

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