POST UTME BSU 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of x and y?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 2
A firm is considering investing in a new project with a payback period of 5 years. The initial investment is ₦5,000,000. Calculate the annual cash inflow required to break even.
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 3
A monopolist's demand function is given by Q = 100 - 2P. If the firm's current price is ₦20, what is the firm's current quantity supplied?
A. 40
B. 50
C. 60
D. 70
Question 4
Consider a closed economy with a \single good and service. If the price level increases by 10% and the nominal GDP also increases by 10%, what can be concluded about the real GDP?
A. Real GDP has increased by 10%
B. Real GDP has decreased by 10%
C. Real GDP has remained cons\tant
D. Insufficient information to determine the effect on real GDP
Question 5
In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. What is the relationship between the firm's marginal \cost (MC) and its marginal revenue (MR)?
A. MC > MR
B. MC = MR
C. MC < MR
D. MC and MR are unrelated
Question 6
A country's GDP at market price is ₦10,000,000,000. The net indirect tax is ₦1,500,000,000. Calculate the GDP at factor \cost.
A. ₦8,500,000,000
B. ₦9,000,000,000
C. ₦9,500,000,000
D. ₦10,500,000,000
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost (MC) is cons\tant at ₦10. What is the monopolist's optimal price and quantity?
A. P = ₦40, Q = 30
B. P = ₦50, Q = 25
C. P = ₦60, Q = 20
D. P = ₦70, Q = 15
Question 8
The money multiplier is a concept used in the money creation process. It is defined as the ratio of the change in the money supply to the change in the reserve requirement. If the reserve requirement is increased from 10% to 15%, and the initial money supply is ₦100 billion, what is the new money supply if the commercial banks maintain a 20% excess reserve ratio?
A. ₦80 billion
B. ₦120 billion
C. ₦150 billion
D. ₦180 billion
Question 9
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm's revenue function is given by R(q) = 3q^2 + 2q - 5, what is the firm's profit function?
A. π(q) = q^2 - 5q + 15
B. π(q) = 2q^2 + 5q + 10
C. π(q) = 3q^2 + 2q - 5
D. π(q) = q^2 + 5q + 15
Question 10
A country's balance of payments (BOP) accounts can be affected by several factors. Which of the following is NOT a factor that affects the BOP?
A. Changes in exchange rates
B. Changes in interest rates
C. Changes in government policies
D. Changes in the weather
Question 11
A country's nominal GDP is ₦100 billion, and its price level is 100. If the price level increases by 20%, what is the new nominal GDP?
A. ₦120 billion
B. ₦140 billion
C. ₦160 billion
D. ₦180 billion
Question 12
A country's GNP is ₦2 trillion, its net factor income from abroad is ₦200 billion, and its depreciation is ₦100 billion. What is the country's national income?
A. ₦2.1 trillion
B. ₦2.2 trillion
C. ₦2.3 trillion
D. ₦2.4 trillion
Question 13
A country's balance of payments deficit is ₦5,000,000,000. The central bank can use monetary policy to reduce the deficit. Explain how the central bank can use open market operations to reduce the deficit.
A. Sell government securities to reduce the money supply
B. Buy government securities to increase the money supply
C. Increase interest rates to reduce consumption and imports
D. Decrease interest rates to increase consumption and imports
Question 14
Consider a country with a balance of payments deficit. Explain how the central bank can use monetary policy to reduce the deficit.
A. Increase interest rates to reduce consumption and imports
B. Decrease interest rates to increase consumption and imports
C. Implement capital controls to limit foreign investment
D. Increase the money supply to stimulate economic growth
Question 15
A country's inflation rate is given by the equation π = \( M/P \) * \( ΔQ/Q \), where M is the money supply, P is the price level, ΔQ is the change in quantity, and Q is the quantity. If the money supply increases by 10% and the price level increases by 5%, what is the inflation rate?
A. 5%
B. 10%
C. 15%
D. 20%

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