Gce Model Questions Vol1 2023 Government Question 24

Practice objective / multiple choice question 24 from the 2023 Gce Model Questions Vol1 Government examination.

Gce Model Questions Vol1 2023 Government Objective / Multiple Choice Hard Difficulty
Question 24 GCE_MODEL_QUESTIONS_VOL1 • 2023 • GOVERNMENT • objective

A local government has a total budget of \(\text{₦}200\) million to fund two projects: Project X (infrastructure) and Project Y (social services). The expected monetary benefit per million naira spent is 1.5 for X and 2.0 for Y. Project X requires a minimum fixed cost of \(\text{₦}40\) million to start, and Project Y requires a minimum of \(\text{₦}30\) million. Moreover, no more than 60 % of the total budget may be allocated to a single project. Determine the allocation (in millions of naira) to X and Y that maximises the total expected benefit, and state the maximum benefit obtained.

Answer Options

Correct Answer A. Allocate ₦80 million to X and ₦120 million to Y; maximum benefit = ₦360 million
B. Allocate ₦100 million to X and ₦100 million to Y; maximum benefit = ₦350 million
C. Allocate ₦115 million to X and ₦85 million to Y; maximum benefit = ₦342.5 million
D. Allocate ₦90 million to X and ₦110 million to Y; maximum benefit = ₦355 million
Correct Answer
A
Correct Option:
Allocate ₦80 million to X and ₦120 million to Y; maximum benefit = ₦360 million

About This Question

This is Gce Model Questions Vol1 2023 Government Question 24. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Government examination.

Difficulty level: Hard .

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