POST UTME CHRISTOPHER UNIVERSITY 2024 Economics | Objective

Prepare for your exams with POST UTME CHRISTOPHER UNIVERSITY questions? Reviewing past/model questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1 View Details
Determine the elasticity of demand for a commodity whose price elasticity of demand is 0.8 and the cross-price elasticity of demand with respect to a related commodity is 0.2. Assume that the income elasticity of demand is 0.5.
A. 0.6
B. 0.7
Correct C. 0.8
D. 0.9

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2 View Details
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?
Correct A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3 View Details
A country's GDP at market price is ₦10,000,000,000. The implicit deflator is 120. If the country's GDP at factor \cost is ₦8,000,000,000, what is the net indirect tax?
Correct A. ₦1,000,000,000
B. ₦1,500,000,000
C. ₦2,000,000,000
D. ₦2,500,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the wage rate is ₦50 per hour, what is the optimal level of capital?
A. 10 units
B. 20 units
Correct C. 30 units
D. 40 units

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5 View Details
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%
Correct B. 4%
C. 6%
D. 8%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6 View Details
Consider a country with a fixed money supply and a central bank that uses the Taylor rule to set interest rates. If the inflation rate is 4% and the output gap is 2%, what will be the new interest rate set by the central bank, assuming the Taylor rule is implemented?
A. 6%
Correct B. 8%
C. 10%
D. 12%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7 View Details
A firm is producing a good with a production function of Q = 2L^0.5K^0.5. If the price of labor is $10 per hour and the price of capital is $20 per hour, and the firm is currently producing 100 units of output, what is the opportunity \cost of producing one more unit of output?
A. $5
Correct B. $10
C. $15
D. $20

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8 View Details
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%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9 View Details
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
Correct B. 60
C. 70
D. 80

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10 View Details
A country is experiencing a balance of payments crisis due to a large trade deficit. If the country's trade deficit is $20 billion and the country's foreign exchange reserves are $10 billion, what is the opportunity \cost of the trade deficit?
A. 20%
Correct B. 30%
C. 40%
D. 50%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11 View Details
A firm's demand curve for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply curve is given by Qs = 2P - 50. Find the equilibrium price and quantity.
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12 View Details
A consumer's utility function is given by U(x, y) = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 100. Find the consumer's optimal bundle of x and y.
Correct A. x = 20, y = 30
B. x = 30, y = 20
C. x = 25, y = 25
D. x = 15, y = 35

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13 View Details
A firm's demand curve for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply curve is given by Qs = 2P - 50. Find the price elasticity of demand at a price of ₦75.
Correct A. 0.5
B. 1
C. 2
D. 3

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14 View Details
Agricultural development in Nigeria has been hindered by the lack of access to credit. What policy intervention would you recomm\end to address this issue?
A. Establish a government-owned bank to provide credit to farmers
Correct B. Introduce a microfinance scheme to provide small loans to farmers
C. Increase the budget allocation for agricultural development
D. Implement a cash transfer program to support farmers

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15 View Details
The balance of payments (BOP) accounts for a country are given by: Current Account = 100, Capital Account = 50, and Financial Account = 20. What is the overall balance of payments position?
Correct A. ₦170
B. ₦180
C. ₦190
D. ₦200

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16 View Details
A firm's average \cost curve intersects its marginal \cost curve at point E, where the average \cost is ₦120. If the firm's total fixed \cost is ₦10,000 and its marginal \cost is ₦50 at point E, calculate the firm's total output at point E.
A. 100 units
Correct B. 200 units
C. 300 units
D. 400 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17 View Details
A country's GDP is ₦1,500,000,000,000. If the country's net factor income from abroad is ₦50,000,000,000, calculate the country's GNP.
Correct A. ₦1,550,000,000,000
B. ₦1,550,500,000,000
C. ₦1,550,000,000,000
D. ₦1,550,500,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18 View Details
A firm's demand function is given by Q = 100 - 2P. If the firm's supply function is given by Q = 2P - 10, calculate the equilibrium price and quantity.
Correct A. P = ₦20, Q = 60
B. P = ₦30, Q = 80
C. P = ₦40, Q = 100
D. P = ₦50, Q = 120

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19 View Details
A country's money supply is ₦500,000,000,000. If the country's velocity of money is 5, calculate the country's nominal GDP.
Correct A. ₦2,500,000,000,000
B. ₦2,500,500,000,000
C. ₦2,500,000,000,000
D. ₦2,500,500,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's inputs are L = 100 and K = 100, calculate the firm's output.
A. 200
Correct B. 400
C. 600
D. 800

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21 View Details
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
Correct B. ₦12,000 billion
C. ₦18,000 billion
D. ₦24,000 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22 View Details
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
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23 View Details
The Central Bank of Nigeria (CBN) has set a monetary policy target of 10% inflation rate. If the current inflation rate is 8%, and the CBN expects the inflation rate to increase by 2% in the next quarter, what is the expected inflation rate in the next quarter?
A. 10%
Correct B. 12%
C. 14%
D. 16%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24 View Details
A farmer is producing wheat on a 100-hectare farm. The farmer's total revenue is ₦1.5 million, and the total \cost is ₦1.2 million. If the farmer's profit is ₦300,000, what is the farmer's profit margin?
A. 20%
B. 25%
Correct C. 30%
D. 35%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25 View Details
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
Correct B. ₦175
C. ₦200
D. ₦225

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

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:
Chat with Support