POST UTME AL-HIKMAH UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's inflation rate is 5% and its interest rate is 10%. What is the real interest rate?
A. 5%
B. 7.5%
C. 10%
D. 12.5%
Question 2
Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average annual income is ₦50,000, what is the implied GDP per capita?
A. ₦25,000
B. ₦50,000
C. ₦100,000
D. ₦200,000
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains cons\tant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A consumer's utility function is given by \( U = 2x + 3y \), 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, find the consumer's optimal consumption bundle.
A. (200, 300)
B. (300, 200)
C. (400, 100)
D. (100, 400)
Question 5
A firm's supply function is given by \( Q = 50 + 2P \). If the price elasticity of supply is 0.2, find the value of the cross-price elasticity of supply.
A. -0.4
B. 0.2
C. 0.4
D. 0.6
Question 6
A country's GDP is ₦2,500 billion and its GNP is ₦2,700 billion. What is the net factor income from abroad?
A. ₦100 billion
B. ₦150 billion
C. ₦200 billion
D. ₦250 billion
Question 7
A firm has a production function given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is the output, K is the capital and L is the labor. If the firm wants to increase its output by 20% while keeping the capital cons\tant, what percentage increase in labor is required?
A. 10%
B. 20%
C. 30%
D. 44%
Question 8
The concept of diminishing marginal utility is closely related to the law of
A. Diminishing Returns
B. Increa\sing Opportunity Cost
C. Law of Supply
D. Law of Demand
Question 9
A country has a trade balance of $100 million and a current account balance of $200 million. What is the capital account balance?
A. $300 million
B. $400 million
C. $500 million
D. $600 million
Question 10
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. -5%
B. 5%
C. 10%
D. 15%
Question 11
A firm's supply curve is upward sloping because of the law of
A. Increa\sing Opportunity Cost
B. Diminishing Returns
C. Law of Supply
D. Law of Demand
Question 12
A consumer has the following utility function: U = 2x + 3y. The prices of x and y are $2 and $3 respectively. If the consumer has a budget of $10, what is the optimal bundle of x and y?
A. x = 1, y = 3
B. x = 2, y = 2
C. x = 3, y = 1
D. x = 4, y = 0
Question 13
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are 100 billion naira and its imports are 80 billion naira, what is the country's balance of payments?
A. 10 billion naira
B. 20 billion naira
C. 30 billion naira
D. 40 billion naira
Question 14
The concept of scarcity is closely related to the idea of
A. Opportunity Cost
B. Diminishing Returns
C. Law of Supply
D. Law of Demand
Question 15
Agricultural development in Nigeria has been hindered by the
A. Lack of Mechanization
B. Inadequate Irrigation
C. Insufficient Fertilizers
D. All of the above

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