Neco 2025 Economics Question 30

Practice objective / multiple choice question 30 from the 2025 Neco Economics examination.

Neco 2025 Economics Objective / Multiple Choice Hard Difficulty
Question 30 NECO • 2025 • ECONOMICS • objective

Country X imports a good whose import demand function is \( M = 500 - 5P \), where \( P \) is the domestic price per unit (in naira). The world price of the good is ₦40. The government is considering a specific tariff of ₦20 per unit and simultaneously imposes an import quota of 150 units. (a) How many units would be imported after the tariff but before the quota is applied? (b) What is the effective price paid by consumers after both the tariff and the quota are in force? (c) Calculate the total tariff revenue collected by the government. (d) Compute the dead‑weight loss arising from the combined tariff and quota.

Answer Options

Correct Answer A. (a) 200 units; (b) ₦70; (c) ₦3000; (d) ₦250
B. (a) 180 units; (b) ₦75; (c) ₦3600; (d) ₦225
C. (a) 250 units; (b) ₦80; (c) ₦4000; (d) ₦300
D. (a) 150 units; (b) ₦65; (c) ₦2500; (d) ₦200
Correct Answer
A
Correct Option:
(a) 200 units; (b) ₦70; (c) ₦3000; (d) ₦250

About This Question

This is Neco 2025 Economics Question 30. It is one of the objective questions from the 2025 Neco Economics examination.

Difficulty level: Hard .

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