All practice questions

The national accounts of the Republic of Zaria for a given fiscal year present the following macroeconomic components (in billions of Naira):

- Personal Consumption Expenditure ($C$): 850
- Gross Domestic Private Investment ($I$): 320
- Government Final Consumption Spending ($G$): 280
- Exports ($X$): 190
- Imports ($M$): 230
- Net Factor Income from Abroad ($NFIA$): -45
- Capital Consumption Allowance: 60
- Net Indirect Taxes (Indirect Taxes minus Subsidies): 35

Calculate the Net National Product at factor cost ($NNP_{fc}$) in billions of Naira.

In a local market economy, the total stock of money in circulation ($M$) is $\text{N}2,500,000$, and the velocity of circulation ($V$) is $6$. If the total volume of physical transactions ($T$) is $300,000$ units, what is the general price level ($P$) per unit in Naira?

Match each taxation type or system in Column A with its corresponding defining feature in Column B.

A specific tax of $\text{₦}50$ per unit is imposed on a commodity whose initial equilibrium price is $\text{₦}200$. Following the introduction of the tax, the market price paid by consumers rises to $\text{₦}235$. What percentage of the total tax burden per unit is borne by the producer?

Complete the statement comparing obligation mechanisms and land holding structures in feudalism and communalism.

Match each economic system's structural outcome or trade-off with the corresponding system type based on comparative economic analysis.

An economy recorded the following international transactions during a financial year (all figures in millions of US dollars):

Based on the table above, what is the overall balance of payments surplus or deficit (in millions of US dollars) before official reserves adjustments?

If a consumer exhibits strictly convex preferences for two goods, any consumption bundle formed by taking a strict convex combination (weighted average) of two distinct bundles located on the same indifference curve will yield a strictly higher level of utility than either of the original bundles.

Match each type of internal economy of scale on the left with its corresponding operational cause or advantage on the right.

A shoe manufacturing workshop operates in the short run with a fixed building and machinery. When employing $5$ workers, the average product of labor is $28$ pairs of shoes per day. Adding a $6\text{th}$ worker brings total output to $168$ pairs per day. Upon hiring a $7\text{th}$ worker, the law of diminishing returns causes the marginal product of the $7\text{th}$ worker to be $50\%$ lower than the marginal product of the $6\text{th}$ worker. What is the average product of labor (in pairs of shoes per day) when $7$ workers are employed?

Match each specific barrier to market entry on the left with its defining economic origin or structural characteristic on the right.

A commercial livestock farm in Sokoto State raises sheep primarily to supply mutton to urban markets. In the same rearing process, raw sheep hides are produced as a byproduct. If a surge in consumer demand causes the price and production volume of mutton to increase significantly, what immediate effect will this have on the market for raw sheep hides?

Which of the following items of public spending is correctly classified as capital expenditure?

When evaluating economic systems, which of the following best highlights a key advantage of a command economy over a pure market economy?

During the implementation of public enterprise reforms in Nigeria, the federal government restructured a seaport authority so that the state retained complete equity ownership while requiring the enterprise to set market-driven fees, generate its own operating capital, and operate profit-consciously without treasury subsidies. Which policy mechanism was applied to this enterprise?

In an economy, the general price index increases from $100$ to $125$ over a given period. Based on the relationship between price level and purchasing power in the Quantity Theory of Money, what is the percentage change in the value of money?

A government levies a specific unit tax of $₦120$ on a manufactured product. Given that the coefficient of price elasticity of demand ($E_d$) is $2.5$ and the coefficient of price elasticity of supply ($E_s$) is $0.5$, which of the following statements correctly evaluates the distribution of the tax incidence between consumers and producers?

Which of the following is an essential condition required for a firm to successfully practice price discrimination?

An economic statistician evaluating a nation's performance via the income approach compiles the following components for a given year:

- Compensation of employees: \text{\mathbb{N}}380\text{ million}
- Operating surplus (rent, interest, and profit): \text{\mathbb{N}}210\text{ million}
- Mixed income of self-employed individuals: \text{\mathbb{N}}90\text{ million}
- Net factor income from abroad (NFIA): \text{\mathbb{N}}-15\text{ million}
- Transfer payments to households: \text{\mathbb{N}}40\text{ million}

What is the Gross Domestic Product at factor cost ($\text{GDP}_{fc}$) for this economy using the income method?

A consumer's preferences for Good $X$ (on the horizontal axis) and Good $Y$ (on the vertical axis) yield an indifference curve where the consumer is willing to give up $6$ units of $Y$ to acquire $1$ additional unit of $X$ at consumption bundle $A$. As the consumer moves to bundle $B$ by consuming more $X$, the rate of substitution drops to $3$ units of $Y$ for $1$ additional unit of $X$. Which of the following statements correctly explains the economic rationale behind this behavior and its geometric implication for the curve?