Neco Model Questions Vol1 2024 Government Question 47

Practice objective / multiple choice question 47 from the 2024 Neco Model Questions Vol1 Government examination.

Neco Model Questions Vol1 2024 Government Objective / Multiple Choice Hard Difficulty
Question 47 NECO_MODEL_QUESTIONS_VOL1 • 2024 • GOVERNMENT • objective

A small open economy has a linear demand for a good given by \( Q_d = 200 - 4P \) and a domestic supply \( Q_s = 2P \), where \(P\) is the price in naira. The world price is \(P_w = 20\) naira and the country imports the difference between demand and domestic supply. The government imposes a specific tariff of \(5\) naira per unit. Determine (a) the quantity of imports after the tariff, (b) the change in consumer surplus, (c) the government revenue from the tariff, and (d) the net welfare loss caused by the tariff. Show all steps.

Answer Options

Correct Answer A. a) 50 units, b) -550, c) 250, d) 300
B. a) 45 units, b) -500, c) 225, d) 275
C. a) 55 units, b) -600, c) 275, d) 325
D. a) 40 units, b) -450, c) 200, d) 250
Correct Answer
A
Correct Option:
a) 50 units, b) -550, c) 250, d) 300

About This Question

This is Neco Model Questions Vol1 2024 Government Question 47. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Government examination.

Difficulty level: Hard .

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