POST UTME CALEB UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government of a country is considering a policy to reduce poverty. The policy involves providing a subsidy to a certain group of people. If the subsidy is ₦10,000 per person and the number of people in the group is 10,000, what is the total \cost of the policy?
A. ₦100,000,000
B. ₦50,000,000
C. ₦20,000,000
D. ₦10,000,000
Question 2
The concept of scarcity in economics implies that the wants and needs of individuals are unlimited, while the resources available to satisfy these wants and needs are limited. Which of the following is a consequence of scarcity?
A. Inefficient allocation of resources
B. Increased production
C. Decreased consumption
D. No impact on economic activity
Question 3
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm increases price from ₦10 to ₦15, by how much will quantity demanded decrease?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 4
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 price at which the quantity demanded is 60?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm increases labor from 100 to 121 units, and capital from 100 to 121 units, by how much will output increase?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 6
A country's balance of payments (BOP) accounts are used to record all economic transactions between residents and non-residents. Which of the following is a component of the BOP?
A. Current account
B. Capital account
C. Financial account
D. All of the above
Question 7
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by QX = 10L^0.5K^0.5, where QX is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 100 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 1.5
D. 2
Question 8
A firm's production function is given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital and L is labor. If the firm's capital and labor inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 9
A government imposes a tax of ₦10 on a good that is currently priced at ₦20. If the demand for the good is given by Q = 100 - 2P, what is the new equilibrium price?
A. ₦15
B. ₦20
C. ₦25
D. ₦30
Question 10
A firm's 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 uses 100 units of labor and 100 units of capital, what is the marginal product of capital?
A. 0.5
B. 1
C. 1.5
D. 2
Question 11
A country's imports and exports are given by the following equations: I = 100 + 2Y and X = 50 + 0.5Y, where Y is the country's GDP. If the country's GDP is ₦500 billion, what is the balance of trade?
A. ₦150 billion
B. ₦200 billion
C. ₦250 billion
D. ₦300 billion
Question 12
A firm's production function is given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital and L is labor. If the firm's capital and labor inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 13
A monopolistically competitive firm faces a demand curve that is downward sloping. If the firm increases its output, what happens to its price?
A. The price increases.
B. The price decreases.
C. The price remains the same.
D. The price becomes perfectly inelastic.
Question 14
A consumer's demand curve for a good is given by Q = 100 - 2P. If the consumer's income is ₦100 and the price of the good is ₦50, what is the consumer's optimal quantity?
A. 20
B. 30
C. 40
D. 50
Question 15
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the total output?
A. 20
B. 30
C. 40
D. 50

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