POST UTME CHRISTOPHER UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A central bank uses monetary policy to increase the money supply. Which of the following would be a consequence of this action?
A. A decrease in the interest rate
B. An increase in the interest rate
C. No change in the interest rate
D. A decrease in the exchange rate
Question 2
A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm's marginal revenue function is MR(x) = 100 - 4x, find the value of x that maximizes revenue.
A. 25
B. 50
C. 75
D. 100
Question 3
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. 10%
C. 15%
D. 20%
Question 4
A firm is producing a good with the following \cost function: C = 2L + 3K. If the firm's labor and capital are 6 and 12 respectively, what is the firm's total \cost?
A. 60
B. 70
C. 80
D. 90
Question 5
A government is considering a tax on a good with a price elasticity of demand of 0.5. If the tax is ₦500, what is the percentage change in quantity demanded?
A. 5%
B. 10%
C. 15%
D. 20%
Question 6
A government imposes a tax of ₦10 on every unit of a good. If the demand function for the good is given by Q = 100 - 2P and the supply function is given by Q = 2P - 10, find the equilibrium price and quantity.
A. P = 20, Q = 40
B. P = 25, Q = 50
C. P = 30, Q = 60
D. P = 35, Q = 70
Question 7
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 supply of the product is given by the equation Qs = 2P - 100, what is the equilibrium quantity?
A. 10
B. 20
C. 30
D. 40
Question 8
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?
A. -5%
B. -10%
C. -15%
D. -20%
Question 9
A firm has a production function Q = 100K^0.5L^0.5. If the firm increases its capital from 100 to 121 units, and holds labor cons\tant at 100 units, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 10
A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm produces 20 units, what is the total revenue?
A. ₦1,600
B. ₦2,000
C. ₦2,400
D. ₦2,800
Question 11
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. If the firm's labor and capital are 4 and 9 respectively, what is the firm's output?
A. 8
B. 10
C. 12
D. 14
Question 12
A country's GDP is calculated as the sum of its consumption (C), investment (I), government sp\ending (G), and net exports (NX). If the country's consumption and investment increase by 5% and 10%, respectively, and its government sp\ending and net exports remain unchanged, what is the likely effect on the country's GDP?
A. The country's GDP will increase by 5%.
B. The country's GDP will increase by 10%.
C. The country's GDP will increase by 15%.
D. The country's GDP will increase by 20%.
Question 13
A country's inflation rate can be calculated u\sing the following formula: inflation rate = \( P_t - P_{t-1} \) / P_{t-1} * 100. If the current price level is 120 and the previous price level was 100, what is the inflation rate?
A. 20%
B. 25%
C. 30%
D. 35%
Question 14
A central bank uses the following monetary policy rule: i = 2 + 0.5\( P - 2 \). If the inflation rate is 3%, what is the nominal interest rate?
A. 6%
B. 7%
C. 8%
D. 9%
Question 15
A central bank uses open market operations to increase the money supply. Which of the following would be a consequence of this action?
A. A decrease in the interest rate
B. An increase in the interest rate
C. No change in the interest rate
D. A decrease in the exchange rate

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