POST UTME COAL CITY UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country is experiencing a recession due to a decrease in aggregate demand. What is the opportunity \cost of increa\sing government sp\ending to stimulate the economy?
A. The opportunity \cost is the reduction in the quality of goods and services available in the market.
B. The opportunity \cost is the increase in the prices of goods and services in the market.
C. The opportunity \cost is the reduction in the quantity of goods and services available in the market.
D. The opportunity \cost is the increase in the demand for goods and services in the market.
Question 2
A firm is producing a good with a marginal \cost curve that is downward sloping. What is the shape of the firm's average \cost curve?
A. The average \cost curve is upward sloping.
B. The average \cost curve is downward sloping.
C. The average \cost curve is horizontal.
D. The average \cost curve is vertical.
Question 3
A firm's demand function is given by Q = 100 - 2P. If the firm's price is ₦20, how many units will it sell?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 4
A government imposes a tax of ₦10 on every unit of a good. If the demand for the good is given by the equation Qd = 100 - 2P, and the supply of the good is given by the equation Qs = 2P - 10, what is the equilibrium price and quantity?
A. P = ₦20, Q = 30
B. P = ₦30, Q = 20
C. P = ₦10, Q = 50
D. P = ₦50, Q = 10
Question 5
Consider a country with a population of 100 million people, and an average annual income of ₦500,000. What is the country's GDP?
A. ₦50 trillion
B. ₦100 trillion
C. ₦500 trillion
D. ₦1 trillion
Question 6
The concept of diminishing marginal utility is most closely related to which of the following economic theories?
A. Law of Diminishing Returns
B. Law of Increa\sing Opportunity Cost
C. Law of Diminishing Marginal Utility
D. Law of Comparative Advantage
Question 7
The government of a country has decided to implement a policy of price control to reduce inflation. However, this policy may lead to a shortage of goods in the market. What is the opportunity \cost of this policy?
A. The opportunity \cost is the reduction in the quality of goods available in the market.
B. The opportunity \cost is the increase in the prices of goods in the market.
C. The opportunity \cost is the reduction in the quantity of goods available in the market.
D. The opportunity \cost is the increase in the demand for goods in the market.
Question 8
A government wants to reduce the price of a commodity by 10%. If the original price is ₦100, what will be the new price?
A. ₦90
B. ₦95
C. ₦100
D. ₦105
Question 9
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will enter or exit the market.
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 4 and K = 9, respectively, what is the firm's current output?
A. 12
B. 16
C. 20
D. 24
Question 11
The government of Nigeria is considering a new tax policy to increase revenue. The policy involves impo\sing a tax on all goods and services sold in the country. U\sing the concept of tax incidence, explain how the tax will affect the consumers and producers of goods and services.
A. The tax will increase the price of goods and services, and the consumers will bear the burden of the tax.
B. The tax will decrease the price of goods and services, and the producers will bear the burden of the tax.
C. The tax will have no effect on the price of goods and services, and the consumers and producers will share the burden of the tax.
D. The tax will increase the price of goods and services, and the producers will bear the burden of the tax.
Question 12
The concept of opportunity \cost is closely related to the concept of scarcity. What is the opportunity \cost of choo\sing one good over another?
A. The \cost of producing the good
B. The \cost of producing an alternative good
C. The \cost of importing the good
D. The \cost of exporting the good
Question 13
The balance of payments (BOP) is a statistical statement that summarizes a country's international transactions over a specific period. Which of the following is a component of the BOP?
A. Current account
B. Capital account
C. Financial account
D. All of the above
Question 14
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 10 units of the good, what is the total \cost?
A. ₦125
B. ₦250
C. ₦375
D. ₦500
Question 15
A consumer's indifference curve is represented by the equation u(x,y) = 2x + 3y. If the consumer's income is ₦1000, and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. (100, 50)
B. (50, 100)
C. (200, 0)
D. (0, 200)

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