Post Utme Abu 2025 Economics Question 7

Practice objective / multiple choice question 7 from the 2025 Post Utme Abu Economics examination.

Post Utme Abu 2025 Economics Objective / Multiple Choice
Question 7 POST_UTME_ABU • 2025 • ECONOMICS • objective

A firm is considering two different investment projects. Project A has a higher initial \cost but is expected to generate higher returns in the long run. Project B has a lower initial \cost but is expected to generate lower returns in the long run. What is the likely effect of the firm's decision on the overall economy?

Answer Options

Correct Answer A. The firm's decision will lead to an increase in the overall GDP.
B. The firm's decision will lead to a decrease in the overall GDP.
C. The firm's decision will have no effect on the overall GDP.
D. The firm's decision will lead to an increase in the overall inflation rate.
Correct Answer
A
Correct Option:
The firm's decision will lead to an increase in the overall GDP.

About This Question

This is Post Utme Abu 2025 Economics Question 7. It is one of the objective questions from the 2025 Post Utme Abu Economics examination.

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