POST UTME CHRISTOPHER UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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. ₦50,000
B. ₦25,000
C. ₦100,000
D. ₦200,000
Question 2
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. If the original price is 10, the tax causes the price to increase by 20%, and the quantity demanded decreases by 30%, calculate the deadweight loss.
A. 2%
B. 4%
C. 6%
D. 8%
Question 3
A central bank uses the money multiplier formula to calculate the money supply. If the reserve requirement is 10%, the money multiplier is 10, and the initial money supply is 100 billion, calculate the new money supply after a 20% increase in the reserve requirement.
A. 120 billion
B. 140 billion
C. 160 billion
D. 180 billion
Question 4
A firm's \cost function is given by C(x) = 2x^2 + 100x. If the firm produces 50 units, what is the total \cost?
A. ₦12,500
B. ₦15,000
C. ₦17,500
D. ₦20,000
Question 5
The marginal propensity to consume (MPC) is defined as the change in consumption exp\enditure resulting from a unit change in disposable income. If the MPC is 0.8, what is the change in consumption exp\enditure if disposable income increases by ₦100?
A. ₦80
B. ₦120
C. ₦160
D. ₦200
Question 6
A consumer's indifference curve is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is $15 and the prices of the two goods are $2 and $3 respectively, what is the consumer's optimal bundle of goods?
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 4, y = 1
D. x = 1, y = 4
Question 7
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 8
A firm's demand function is given by \( Q = 100 - 2P \). If the firm's current price is \( P = 20 \), what is the firm's quantity demanded?
A. 60
B. 40
C. 20
D. 10
Question 9
A country's balance of payments (BOP) is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, find the balance of payments.
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 10
A government imposes a tax on a firm's output. If the firm's supply function is given by Q = 2P - 100 and the tax rate is 20%, what is the new supply function?
A. Q = 2P - 80
B. Q = 2P - 120
C. Q = 2P - 140
D. Q = 2P - 160
Question 11
A firm has a demand function given by Q = 100 - 2P. If the price elasticity of demand is 2, what is the optimal price to maximize revenue?
A. $20
B. $30
C. $40
D. $50
Question 12
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital 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 firm's supply function is given by Q = 2P + 10, where Q is quantity supplied and P is price. If the firm's marginal \cost is $5, what is the firm's optimal price?
A. $5
B. $10
C. $15
D. $20
Question 14
A consumer has a budget of ₦1000 and faces a price of ₦200 for a unit of a good. U\sing the concept of utility, explain how the consumer will allocate their budget between this good and another good with a price of ₦300.
A. The consumer will allocate all their budget to the good with a price of ₦200.
B. The consumer will allocate all their budget to the good with a price of ₦300.
C. The consumer will allocate their budget between the two goods in a ratio of 2:1.
D. The consumer will allocate their budget between the two goods in a ratio of 1:2.
Question 15
A country's national income accounts show that its GDP is ₦15 trillion, its GNP is ₦12 trillion, and its net factor income from abroad is ₦1 trillion. What is the country's net domestic product?
A. ₦12 trillion
B. ₦13 trillion
C. ₦14 trillion
D. ₦15 trillion

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: