POST UTME AAUA 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country has a trade deficit of $100 billion. What is the likely effect on the exchange rate?
A. Appreciate
B. Depreciate
C. No change
D. Uncertain
Question 2
The government of a country imposes a tariff of 20% on imported goods. If the price of the imported good is $100, what is the price paid by the consumer?
A. $120
B. $120.20
C. $120.40
D. $120.60
Question 3
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the price of labor is ₦10 per unit, what is the minimum \cost of production?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
Question 5
Calculate the Gross Domestic Product (GDP) of a country u\sing the following data: National Income (NI) = ₦1,500,000,000; Net Factor Income from Abroad (NFIA) = ₦200,000,000; Depreciation (D) = ₦150,000,000.
A. ₦1,550,000,000
B. ₦1,650,000,000
C. ₦1,750,000,000
D. ₦1,850,000,000
Question 6
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5, where Q is the quantity of the good produced, L is the amount of labor used, and K is the amount of capital used. The firm's \cost function is given by C = 100L + 200K. If the firm is currently u\sing 100 units of labor and 200 units of capital, what is the firm's total \cost?
A. The firm's total \cost is ₦10000.
B. The firm's total \cost is ₦12000.
C. The firm's total \cost is ₦15000.
D. The firm's total \cost is ₦18000.
Question 7
A consumer has a budget of ₦1000 and is faced with the following prices for two goods, X and Y: P_X = ₦200 and P_Y = ₦300. The consumer's utility function is given by U = 2X^0.5Y^0.5. What is the consumer's optimal consumption bundle?
A. The consumer's optimal consumption bundle is (2, 1).
B. The consumer's optimal consumption bundle is (1, 2).
C. The consumer's optimal consumption bundle is (3, 0).
D. The consumer's optimal consumption bundle is (0, 3).
Question 8
A perfectly competitive market is in equilibrium. The demand curve is D = 100 - 2P and the supply curve is S = 2 + 3P. What is the equilibrium price and quantity?
A. P = 30, Q = 70
B. P = 34, Q = 66
C. P = 38, Q = 62
D. P = 42, Q = 58
Question 9
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 100. What is the consumer's optimal bundle of x and y?
A. (20, 20)
B. (30, 15)
C. (40, 10)
D. (50, 5)
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor (MPL) at these input levels?
A. 1
B. 2
C. 3
D. 4
Question 11
A country's GNP is ₦120 billion, its net factor income from abroad is ₦10 billion, and its depreciation is ₦5 billion. What is its GDP?
A. ₦115 billion
B. ₦120 billion
C. ₦125 billion
D. ₦130 billion
Question 12
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 13
Consider a firm operating in a perfectly competitive market with a given demand curve. If the firm's marginal revenue (MR) curve intersects the average variable \cost (AVC) curve at point A, and the marginal \cost (MC) curve intersects the AVC curve at point B, which of the following is true?
A. The firm is operating in the short run and is incurring losses.
B. The firm is operating in the long run and is earning normal profits.
C. The firm is operating in the short run and is earning supernormal profits.
D. The firm is operating in the long run and is incurring losses.
Question 14
A government imposes a tax on a good. What is the likely effect on the supply of the good?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 15
The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation facilities, and increa\sing the supply of fertilizers. However, the policy has also led to an increase in the price of rice, which has affected the purcha\sing power of consumers. U\sing the concept of opportunity \cost, explain the opportunity \cost of implementing this policy.
A. The opportunity \cost of implementing this policy is the increase in the price of rice.
B. The opportunity \cost of implementing this policy is the decrease in the production of other crops.
C. The opportunity \cost of implementing this policy is the increase in the \cost of production.
D. The opportunity \cost of implementing this policy is the decrease in the purcha\sing power of consumers.

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