POST UTME CHRISTOPHER UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The balance of payments (BOP) of a country is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period. Which of the following is a component of the current account in the BOP?
A. Exports of goods and services
B. Imports of goods and services
C. Investment income
D. All of the above
Question 2
A country's balance of payments (BOP) is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are valued at ₦150 billion and its imports are valued at ₦200 billion, what is the balance of payments?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 4
A firm is considering two alternative production processes to produce a particular good. Process A requires an initial investment of ₦1,000,000 and has a fixed \cost of ₦200,000 per year. Process B requires an initial investment of ₦500,000 and has a fixed \cost of ₦300,000 per year. If the variable \cost of production is ₦100 per unit, and the firm produces 10,000 units per year, which process is more profitable?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 5
A country's GDP is ₦1000 billion and its GNP is ₦1200 billion. What is the country's net factor income from abroad?
A. ₦200 billion
B. ₦300 billion
C. ₦400 billion
D. ₦500 billion
Question 6
Calculate the elasticity of demand for a product whose price elasticity of demand is 0.8 and the price increases by 10%.
A. 0.8
B. 0.9
C. 1.2
D. 1.5
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. The supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price. If the market is in equilibrium, what is the price of the product?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 8
A firm's money demand function is given by M = 1000 - 10P, where M is the money demand and P is the price level. If the money supply is $1000, find the equilibrium price level.
A. $50
B. $100
C. $150
D. $200
Question 9
A firm is considering two different production processes for its new product. Process A requires an initial investment of ₦10 million and has a variable \cost of ₦5 per unit. Process B requires an initial investment of ₦15 million and has a variable \cost of ₦3 per unit. If the firm expects to sell 10,000 units of the product, which process will result in higher revenue?
A. Process A
B. Process B
C. Both processes will result in the same revenue
D. Neither process will result in revenue
Question 10
The government of Nigeria is considering a policy to increase the production of rice. Which of the following is a potential benefit of this policy?
A. Increased employment opportunities
B. Increased foreign exchange earnings
C. Increased government revenue
D. Increased poverty reduction
Question 11
A country's inflation rate is given by the following equation: inflation rate = \( P - P0 \)/P0, where P is the current price level and P0 is the base price level. If the current price level is ₦100 and the base price level is ₦90, what is the inflation rate?
A. 0.11
B. 0.22
C. 0.33
D. 0.44
Question 12
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
A. 1
B. 2
C. 3
D. 4
Question 13
A consumer has a budget of ₦10,000 per month and a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦2 and ₦3 per unit respectively, and the consumer allocates ₦4,000 to good x, how much should be allocated to good y?
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 14
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 = 2L^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 wants to produce 100 units of good X, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum \cost of producing 100 units of good X?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A firm's \cost function is given by C(x) = 2x^2 + 5x + 1. If the firm's revenue function is R(x) = 3x^2 + 2x + 1, find the value of x that minimizes the firm's average \cost.
A. 1
B. 2
C. 3
D. 4

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