POST UTME AAUA 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's elasticity of demand is given by the equation E = \( ΔQ / ΔP \) × \( P / Q \), where E is the elasticity of demand, ΔQ is the change in quantity demanded, ΔP is the change in price, P is the price, and Q is the quantity demanded. If the price is ₦50 and the quantity demanded is 100 units, and the change in price is ₦10 and the change in quantity demanded is 20 units, what is the elasticity of demand?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 2
A firm's revenue function is given by the equation R = 2Q^2 + 10Q, where R is the total revenue and Q is the quantity sold. If the quantity sold is 5 units, what is the total revenue?
A. 150
B. 200
C. 250
D. 300
Question 3
A firm produces two goods, A and B. The production of good A requires 2 units of labor and 3 units of capital, while the production of good B requires 3 units of labor and 2 units of capital. If the firm has 12 units of labor and 15 units of capital, how many units of good A and good B can the firm produce?
A. 10 units of A and 8 units of B
B. 8 units of A and 10 units of B
C. 12 units of A and 6 units of B
D. 6 units of A and 12 units of B
Question 4
A consumer has a budget of ₦1,000 and faces the following prices: Q1 = ₦100, Q2 = ₦200, Q3 = ₦300. If the consumer buys 2 units of Q1, 1 unit of Q2, and 1 unit of Q3, what is the opportunity \cost of buying 1 more unit of Q2?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 5
A firm's total revenue function is given by ( TR(q) = 100q - 2q^2 ). If the firm's marginal revenue function is ( MR(q) = 100 - 4q ), what is the firm's optimal output level?
A. 25
B. 50
C. 75
D. 100
Question 6
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor and K is capital. If the firm's labor and capital are 16 and 9 units respectively, what is the value of the marginal product of capital?
A. 1/2
B. 1
C. 2
D. 3
Question 7
A country's GDP is calculated as the sum of the value of all final goods and services produced within the country during a given period. Which of the following is NOT included in the calculation of GDP?
A. The value of all intermediate goods and services
B. The value of all final goods and services
C. The value of all capital goods
D. The value of all government services
Question 8
A country's balance of payments is in equilibrium when the current account and capital account are balanced. Which of the following is a characteristic of a country with a current account surplus?
A. The country is experiencing a trade deficit
B. The country is experiencing a trade surplus
C. The country is experiencing a capital account deficit
D. The country is experiencing a capital account surplus
Question 9
The government of Nigeria has introduced a new agricultural policy aimed at increa\sing food production. The policy includes a subsidy of ₦50,000 per hectare for farmers who produce maize. If the government allocates ₦1 billion for the subsidy, how many hectares of maize can be produced?
A. 20,000 hectares
B. 50,000 hectares
C. 100,000 hectares
D. 200,000 hectares
Question 10
The government of Nigeria has introduced a new policy to increase agricultural production. The policy aims to increase the supply of agricultural products by providing subsidies to farmers. However, the policy has been criticized for being ineffective in achieving its goals. Which of the following is a possible reason for the ineffectiveness of the policy?
A. The subsidies are not sufficient to cover the \costs of production.
B. The subsidies are not targeted at the right farmers.
C. The subsidies are not aligned with the market demand for agricultural products.
D. The subsidies are not sustainable in the long run.
Question 11
The concept of returns to scale in production theory implies that as the input of a variable factor increases, the output of the firm will increase at a rate that is proportional to the increase in the input. Which of the following is a characteristic of a firm operating under increa\sing returns to scale?
A. The average product of labor increases as the firm expands its production
B. The marginal product of labor decreases as the firm expands its production
C. The total product of labor increases at a decrea\sing rate as the firm expands its production
D. The average product of labor decreases as the firm expands its production
Question 12
A country's GDP is 100 billion naira. If the country's government decides to impose a 10% tax on all goods and services, what will be the new GDP?
A. 90 billion naira
B. 100 billion naira
C. 110 billion naira
D. 120 billion naira
Question 13
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price elasticity of demand is 0.8, what is the percentage change in total revenue?
A. 10%
B. 20%
C. 30%
D. 40%
Question 14
A central bank increases the reserve requirement for commercial banks from 10% to 15%. What is the effect on the money supply?
A. Increases
B. Decreases
C. Remains unchanged
D. Increases initially, then decreases
Question 15
A country experiences a 10% increase in the price level, and its nominal GDP increases by 5%. What is the percentage change in real GDP?
A. 5%
B. 10%
C. 15%
D. 20%

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