Post Utme Wellspring University 2019 Economics Question 19

Practice objective / multiple choice question 19 from the 2019 Post Utme Wellspring University Economics examination.

Post Utme Wellspring University 2019 Economics Objective / Multiple Choice
Question 19 POST_UTME_WELLSPRING_UNIVERSITY • 2019 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase industrial production. The policy involves providing subsidies to industries that use modern techno\logy. However, the policy has been criticized for being too expensive and for favoring large-scale industries at the expense of small-scale industries. What is the likely effect of this policy on the income of small-scale industries?

Answer Options

A. Their income will increase due to the subsidies provided
Correct Answer B. Their income will decrease due to the increased competition from large-scale industries
C. Their income will remain the same as they will not be affected by the policy
D. Their income will increase due to the increased demand for their products
Correct Answer
B
Correct Option:
Their income will decrease due to the increased competition from large-scale industries

About This Question

This is Post Utme Wellspring University 2019 Economics Question 19. It is one of the objective questions from the 2019 Post Utme Wellspring University Economics examination.

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