All practice questions

If a consumer spends a fixed money income exclusively on Good $X$ (plotted on the horizontal axis) and Good $Y$ (plotted on the vertical axis), a simultaneous per-unit tax on Good $X$ and per-unit subsidy on Good $Y$ will cause the budget line to pivot inward along the horizontal axis, pivot outward along the vertical axis, and become steeper.

A household's maximum willingness to pay for successive kegs of palm oil is given in the table below:

If the market price per keg is ₦350, what is the total consumer surplus derived by the household?

Which of the following financial instruments represents an equity security that confers voting rights and residual ownership benefits on its holder in the capital market?

A specific tax of $\text{₦}15$ per unit is imposed on a luxury commodity. Prior to the imposition of the tax, the equilibrium market price was $\text{₦}100$ per unit. Following the tax, the market price paid by consumers increases to $\text{₦}109$ per unit. What is the amount of the unit tax borne by the producer in Naira ($\text{₦}$)?

A concrete block manufacturing factory operates in the short run with fixed molding machinery and variable labor ($L$). When $4$ workers are employed, the average product of labor ($AP_L$) is $30$ blocks per worker. When a $5\text{th}$ worker is hired, the total product of labor ($TP_L$) increases to $145$ blocks. What is the marginal product ($MP_L$) of the $5\text{th}$ worker?

A government issues 91-day Treasury bills to cover an immediate deficiency in recurrent expenditure, while concurrently making systematic annual deposits into a dedicated reserve to redeem a 20-year bond issue at maturity. How are these two public debt instruments classified respectively?

Match each basic economic problem of society on the left with its corresponding core decision or determining factor on the right.

Government agencies frequently compile national income statistics to evaluate overall macroeconomic performance. Which of the following represents a primary use of national income estimates in economic management?

In a regional market for poultry feed, the daily quantity demanded is expressed as $Q_d = 480 - 12P$ and the daily quantity supplied is expressed as $Q_s = -120 + 18P$, where $P$ represents the price per bag in hundreds of Naira and $Q$ represents quantity in bags. What is the market equilibrium price per bag in hundreds of Naira?

A country recorded an Income Terms of Trade index of $144$ and an export volume index of $120$ relative to the base year index of $100$. If the country's import price index stood at $125$ during the same period, what was its export price index?

Within the institutional framework of the financial system, specialized non-bank financial intermediaries mobilize resources through distinct economic mechanisms. Match each financial intermediary listed on the left with its corresponding primary fund mobilization and asset accumulation strategy on the right:

Match each industrial location factor or phenomenon on the left with its corresponding Nigerian economic scenario on the right.

In a regional agricultural market, the total stock of money in circulation ($M$) is ₦80,000 and the average price level ($P$) per unit of output is ₦250. If the physical volume of transactions ($T$) recorded during the period is 1,600 units, calculate the velocity of circulation ($V$) of money.

Match each money market participant or instrument with its defining operational function.

In a financial year, a government collected $\text{₦}650\text{ billion}$ in tax revenue and $\text{₦}180\text{ billion}$ in non-tax revenue. During the same period, its recurrent expenditure was $\text{₦}520\text{ billion}$ and its capital expenditure was $\text{₦}460\text{ billion}$. What is the government's budget deficit in billions of Naira ($\text{₦}$)?

Match each economic development planning model or strategy with its defining feature or core theoretical mechanism.

An individual purchases a long-term annuity policy from an insurance firm and contributes to a pension scheme to fund retirement. Which of the following features fundamentally distinguishes these non-bank financial intermediaries from commercial banking institutions?

Match each long-run production and cost concept on the left with its corresponding economic characterization or primary cause on the right.

Which factor explains why fluctuations in international crude oil prices frequently destabilize national development plans in Nigeria?

At the beginning of a given trading period, the nominal exchange rate between the Nigerian Naira ($\text{NGN}$) and the US Dollar ($\text{USD}$) is $\$1 = \text{NGN } 500$. During the period, Nigeria records an annual inflation rate of $26\%$, whereas the United States records an annual inflation rate of $5\%$. According to the relative Purchasing Power Parity (PPP) theory of exchange rate determination, what is the new equilibrium nominal exchange rate in $\text{NGN}$ per $\text{USD}$?