All practice questions

If the price of good $X$ falls while the consumer's income and the price of good $Y$ remain unchanged, the budget line rotates outward along the $X$-axis and becomes less steep.

The following macroeconomic national income data are provided for a country in a given financial year (in millions of Naira):

Using the expenditure approach, calculate the Net National Product at factor cost ($NNP_{fc}$) in millions of Naira.

Match each property of an indifference curve on the left with its correct economic explanation on the right.

During a national industrialization campaign, a government authority formulates a scheme that directly allocates specific physical quantities of raw materials, equipment, and manpower to achieve designated production targets in various sectors. Which type of economic planning is demonstrated in this scenario?

A fundamental property of a standard indifference curve is that it is convex to the origin. Which economic concept directly explains why an indifference curve has this convex shape?

A solar energy equipment manufacturing firm located in Enugu doubles all of its production inputs, including both capital equipment and labor. Consequently, its total daily output of solar panels increases by $150\%$. Which of the following long-run production concepts is illustrated by this firm's expansion?

Match each balance of payments adjustment policy measure listed on the left with its corresponding underlying economic mechanism on the right.

During an economic recession, raising the central bank's rediscount rate serves to expand credit creation by commercial banks and stimulate aggregate demand.

Match each geometric property of indifference curves in Column I with its underlying economic foundation or preference axiom in Column II.

An economy's production possibility frontier for agricultural produce ($A$) and manufactured capital ($M$) is represented by the non-linear equation $A^2 + 4M^2 = 400$, where both $A$ and $M$ are measured in thousands of units. If the economy is currently operating efficiently by producing 12 thousand units of agricultural produce, what is the opportunity cost (in thousands of units) of manufactured capital sacrificed if agricultural output is increased to 16 thousand units?

A agricultural processing factory in Benue State crushes soybeans to extract soybean oil for domestic cooking. In the same production process, soybean cake used for livestock feed is inevitably produced along with the oil. What type of supply is illustrated by soybean oil and soybean cake?

If a consumer's nominal income increases by $50\%$ while the price of good $X$ increases by $50\%$ and the price of good $Y$ remains constant, the budget line will pivot inward along the vertical axis while keeping its horizontal intercept unchanged.

Match each structural dimension of a traditional economic system on the left with its corresponding operational reality or systemic constraint on the right.

In economic planning, financial planning allocates real physical inputs—such as raw materials, machinery, and labor hours—to production sectors, whereas physical planning balances aggregate monetary demand, expenditure, and national revenue streams.

Match each Terms of Trade concept or structural analytical framework on the left with its precise economic formulation and conceptual interpretation on the right.

During a macroeconomic appraisal, the central statistical office of a nation reported a Gross Domestic Product at market prices ($GDP_{mp}$) of $\$1,250$ billion for the fiscal year. Additional national accounting records indicate Gross Domestic Capital Formation ($I$) of $\$310$ billion, Government Final Consumption Expenditure ($G$) of $\$240$ billion, Exports ($X$) of $\$180$ billion, Imports ($M$) of $\$215$ billion, Net Factor Income from Abroad ($NFIA$) of $-\$45$ billion, Depreciation of $\$70$ billion, and Net Indirect Taxes of $\$55$ billion. Using the expenditure approach of national income accounting, what is the value of Private Final Consumption Expenditure ($C$)?

A country experiencing a persistent deficit in its balance of payments decides to adopt an expenditure-switching policy to achieve equilibrium. Which of the following actions directly represents an expenditure-switching measure?

Which of the following revenue relationships is a defining characteristic of a pure monopolist?

A palm oil processing enterprise operating in Ondo State doubles all of its production inputs (labor, land, and capital), resulting in a $130\%$ increase in total output and a fall in its long-run average cost per unit. Which economic phenomenon is the firm experiencing?

The balance of payments statistics of a country show visible exports of $420 million, visible imports of$ 580 million, net receipts from invisible trade and official transfers of $60 million, and net capital inflows of$ 40 million. What is the current account balance, and which expenditure-switching measure can be implemented to address this disequilibrium?