Neco 2024 Government Question 2

Practice objective / multiple choice question 2 from the 2024 Neco Government examination.

Neco 2024 Government Objective / Multiple Choice Hard Difficulty
Question 2 NECO • 2024 • GOVERNMENT • objective

Nigeria imposes a 15\% import tariff on wheat. The world market price of wheat is US\$0.30 per kilogram and the exchange rate is \(\text{₦}750\) per US\$. In addition, a transport cost of 5\% of the landed cost is added after the tariff. The government wants the final domestic price of imported wheat not to exceed \(\text{₦}300\) per kilogram and also to be at least 10\% higher than the cost of locally produced wheat, which is \(\text{₦}240\) per kilogram. Does the current tariff and transport cost policy satisfy both objectives?

Answer Options

A. No, the imported wheat is not at least ten percent higher than local wheat.
B. Yes, but only one of the objectives is met.
C. No, the domestic price exceeds the limit.
Correct Answer D. Yes, both objectives are satisfied.
Correct Answer
D
Correct Option:
Yes, both objectives are satisfied.

About This Question

This is Neco 2024 Government Question 2. It is one of the objective questions from the 2024 Neco Government examination.

Difficulty level: Hard .

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