POST UTME ABU 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the exports, and M is the imports. If the country's exports are ₦1000 and the imports are ₦800, what is the balance of payments?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 2
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 produced, L is the amount of labor used, and K is the amount of capital used. If the firm wants to produce 100 units of the good, how much labor and capital should it use?
A. L = 25, K = 25
B. L = 50, K = 50
C. L = 100, K = 100
D. L = 200, K = 200
Question 3
A country's inflation rate is 5% per annum, and its nominal interest rate is 10% per annum. What is the real interest rate?
A. 5%
B. 6%
C. 7%
D. 8%
Question 4
A government is considering a policy to reduce the poverty rate by increa\sing the minimum wage. The current minimum wage is ₦50,000 per month and the government wants to increase it by 10% every year for the next 5 years. If the current poverty rate is 20%, what will be the poverty rate after 5 years?
A. 10%
B. 15%
C. 20%
D. 25%
Question 5
The concept of scarcity in economics implies that the needs and wants of individuals are unlimited, but the resources available to satisfy these needs and wants are limited. Which of the following is a correct statement regarding the law of diminishing marginal utility?
A. As the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases.
B. The law of diminishing marginal utility is applicable only to normal goods.
C. The law of diminishing marginal utility is a consequence of the law of supply.
D. The law of diminishing marginal utility is a consequence of the law of demand.
Question 6
The government of a country imposes a tax on a particular good to reduce its consumption. Which of the following is a consequence of this tax?
A. The tax revenue collected by the government increases.
B. The tax revenue collected by the government decreases.
C. The price of the good increases, but the quantity consumed decreases.
D. The price of the good decreases, but the quantity consumed increases.
Question 7
The concept of scarcity in economics implies that the wants and needs of individuals are unlimited, but the resources available to satisfy these wants and needs are limited. Which of the following is a correct statement regarding the implications of scarcity?
A. Scarcity leads to a decrease in the s\tandard of living.
B. Scarcity results in a decrease in the production of goods and services.
C. Scarcity leads to a decrease in the consumption of goods and services.
D. Scarcity results in a decrease in the price of goods and services.
Question 8
A country's economic growth is influenced by its balance of payments. If the balance of payments is in surplus, what is the likely effect on the country's exchange rate?
A. The exchange rate will appreciate.
B. The exchange rate will depreciate.
C. The exchange rate will remain unchanged.
D. The exchange rate will fluctuate.
Question 9
A firm is considering investing in a new project that has a net present value (NPV) of ₦100,000. The firm's \cost of capital is 10%. Which of the following is a correct statement regarding the NPV rule?
A. The NPV rule states that a project should be accepted if its NPV is greater than its \cost of capital.
B. The NPV rule states that a project should be accepted if its NPV is less than its \cost of capital.
C. The NPV rule states that a project should be accepted if its NPV is greater than zero.
D. The NPV rule states that a project should be accepted if its NPV is less than zero.
Question 10
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is increased by 10%, what is the new quantity demanded?
A. 80
B. 90
C. 100
D. 110
Question 11
The government of a country has decided to implement a new tax policy to reduce income inequality. The tax policy involves a progressive tax system where the tax rate increases as the income level increases. The tax rates are as follows: 10% for income up to ₦100,000, 20% for income between ₦100,001 and ₦200,000, and 30% for income above ₦200,000. If a person has an income of ₦250,000, how much tax will they pay?
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 12
A monopolist faces a downward-sloping demand curve. If the firm increases its price, what will happen to its marginal revenue?
A. Increase
B. Decrease
C. Remain the same
D. Become indeterminate
Question 13
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 14
A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current labor and capital inputs are L = 16 and H = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the given input levels?
A. 0.5
B. 1
C. 2
D. 4
Question 15
A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?
A. (200, 200)
B. (300, 100)
C. (400, 0)
D. (0, 0)

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