All practice questions

The concentration of many independent firms belonging to the same industry within a specific geographical area is known as the localization of industry.

For a Giffen good, when its price decreases, the positive substitution effect on quantity demanded is outweighed by a negative income effect, causing the total quantity demanded to decrease.

Why do firms operating in a non-collusive oligopoly often prefer non-price competition, such as heavy advertising, over price cuts?

Match each obstacle to economic development in developing nations listed on the left with its corresponding structural manifestation on the right.

The weekly milk yields (in liters) of six dairy cows on a commercial farm were recorded as follows: $8$, $10$, $14$, $16$, $22$, and $26$. What is the median weekly milk yield for the cows?

A manufacturing firm operating in an imperfectly competitive market sells $5$ units of its commodity at a price of $\text{₦}30$ per unit. In order to increase its sales to $6$ units, the firm lowers the price to $\text{₦}27$ per unit. What is the marginal revenue ($\text{MR}$) of the $6\text{th}$ unit in Naira ($\text{₦}$)?

In a specialized agricultural sector, a single government marketing board serves as the sole buyer of raw rubber from local farmers, while all local farmers are organized into a single producer cooperative that acts as the exclusive seller. Which statement best describes the equilibrium outcome under this market structure?

Different structural mechanisms create barriers to entry in imperfect market structures. Relate each specific entry barrier listed on the left with the economic circumstance that generates it on the right.

The market demand and supply equations for fertilizer in an agricultural district are given by $Q_d = 1,800 - 40P$ and $Q_s = 200 + 40P$, where $P$ is the price per bag in Naira ($\text{N}$) and $Q$ is the quantity in bags. The government introduces a price ceiling of $\text{N} 12$ per bag to lower farming input costs. By how many bags does the quantity of fertilizer actually traded in the market decrease as a result of this price control policy?

Match each category or concept of public expenditure on the left with its correct characteristic or definition on the right.

The monthly revenue collection (in millions of Naira, $\text{₦'million}$) from six regional revenue offices of a state government was recorded as $14$, $18$, $12$, $x$, $22$, and $16$. If the arithmetic mean of the revenue collected across all six offices is $\text{₦}17\text{ million}$, what is the value of $x$?

A state-owned broadcasting enterprise was restructured by the Federal Government of Nigeria to operate strictly on commercial principles, charge market-reflective rates, and fund its operations without relying on government subventions. However, the state retained 100% of the enterprise's equity ownership. Which public enterprise reform policy does this scenario illustrate?

Karl Marx argued that the fundamental flaw of capitalism lies in the systematic exploitation of the working class (proletariat) by the owners of the means of production (bourgeoisie). According to Marxist socialist doctrine, which concept specifically describes the uncompensated value generated by labor that is appropriated by capitalists as profit?

A consumer's evaluation of marginal utility (maximum willingness to pay) for purchasing successive bottles of fruit juice is presented in the table below:

If the prevailing market price per bottle is ₦200, what is the total consumer surplus derived from consuming the optimal quantity of fruit juice?

Suppose the market price of a normal commodity increases. The substitution effect causes a consumer to purchase $5$ fewer units of the commodity. If the total price effect results in an overall reduction of $9$ units in quantity demanded, what is the specific impact of the income effect on the quantity demanded of the commodity?

To curb rising general price levels, the monetary authority decides to raise the Cash Reserve Ratio (CRR) applicable to deposit money banks. Which of the following represents the immediate operational outcome of this policy adjustment on the commercial banking sector?

In Period 1, an economy recorded a Nominal GDP of $\text{₦}500\text{ billion}$, a GDP deflator of $100$, and a total population of $40\text{ million}$. By Period 2, Nominal GDP expanded to $\text{₦}750\text{ billion}$, the GDP deflator increased to $125$, and the population grew to $50\text{ million}$. What was the percentage change in the country's real per capita income between Period 1 and Period 2?

Under monopolistic competition, long-run equilibrium maximizes consumer welfare by achieving both productive efficiency (producing at minimum $ATC$) and allocative efficiency (setting $P = MC$).

In many developing economies, domestic capital accumulation is severely restricted when wealth holders continuously transfer their financial assets to foreign jurisdictions due to political instability or inflation. Which obstacle to economic development does this practice directly represent?

The table below shows the distribution of monthly fuel consumption (in liters) for a sample of $50$ commercial transport vehicles operated by a logistics firm in Lagos:

Calculate the median fuel consumption (in liters) for this sample of vehicles.