POST UTME CHRISTOPHER UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's inflation rate is 10% per annum. If the nominal interest rate is 12% per annum, what is the real interest rate?
A. 2%
B. 4%
C. 6%
D. 8%
Question 2
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in \cost?
A. -5%
B. 0%
C. 5%
D. 10%
Question 3
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 the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. -5%
B. 0%
C. 5%
D. 10%
Question 4
A country is experiencing a trade deficit due to a decrease in exports and an increase in imports. If the country's GDP is $100 billion and the trade deficit is $20 billion, what is the opportunity \cost of the trade deficit?
A. 10%
B. 20%
C. 30%
D. 40%
Question 5
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^\( 1/2 \)H^\( 1/2 \). If the firm's current labor and capital inputs are L = 16 and H = 9, respectively, calculate the firm's average product of labor (APL) and average product of capital (APK).
A. APL = 0.5L^\( -1/2 \)H^\( 1/2 \), APK = L^\( 1/2 \)H^\( -1/2 \)
B. APL = L^\( -1/2 \)H^\( -1/2 \), APK = 0.5L^\( 1/2 \)H^\( -1/2 \)
C. APL = 0.5L^\( -1/2 \)H^\( -1/2 \), APK = L^\( -1/2 \)H^\( 1/2 \)
D. APL = L^\( -1/2 \)H^\( 1/2 \), APK = 0.5L^\( 1/2 \)H^\( -1/2 \)
Question 6
A firm's \cost function is given by C = 2L + 3H, where L is labor and H is capital. If the firm's current labor and capital inputs are L = 10 and H = 5, respectively, calculate the firm's total \cost.
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 7
A country's money supply is given by M = 1000 + 0.5Y, where M is money supply and Y is GDP. If the country's GDP increases by 10%, what is the percentage change in money supply?
A. -5%
B. 0%
C. 5%
D. 10%
Question 8
A firm is considering two investment projects. Project A has a net present value (NPV) of ₦1,500,000 and a payback period of 5 years. Project B has an NPV of ₦1,200,000 and a payback period of 4 years. Assuming that the \cost of capital is 10% per annum, which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 9
A firm is operating in a perfectly competitive market with a demand curve of Q = 100 - 2P and a supply curve of Q = 20 + 3P. If the price of the good is $10, what is the firm's profit-maximizing quantity?
A. 50
B. 60
C. 70
D. 80
Question 10
A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. However, this equilibrium is not necessarily a reflection of the country's overall economic health. What is the name of the economic concept that describes the relationship between a country's imports and exports?
A. Trade Deficit
B. Trade Surplus
C. Current Account Balance
D. Balance of Payments Equilibrium
Question 11
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue. The policy includes a 10% tax on all goods and services. If the current GDP of Nigeria is ₦120 trillion, and the government expects the tax revenue to be 5% of the GDP, what is the expected tax revenue in billions of naira?
A. ₦6,000 billion
B. ₦12,000 billion
C. ₦18,000 billion
D. ₦24,000 billion
Question 12
A firm is producing a good with a marginal \cost (MC) of ₦100 and a marginal revenue (MR) of ₦150. If the firm is currently producing 100 units of the good, what is the change in the firm's profit?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 13
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 cons\tant and equal to 2, find the price at which the quantity demanded is 60 units.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 14
The Nigerian government has introduced a new policy to increase the production of rice. The policy includes a subsidy of ₦50 per ki\logram of rice produced. If the current price of rice is ₦200 per ki\logram, and the government expects the price to decrease by 25%, what is the expected price of rice in the next quarter?
A. ₦150
B. ₦175
C. ₦200
D. ₦225
Question 15
A firm produces two products, A and B. The production function for product A is given by Q_A = 2L + 3K, where L is the labor and K is the capital. The production function for product B is given by Q_B = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, find the total output of the firm.
A. 20
B. 25
C. 30
D. 35

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