POST UTME COAL CITY UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total revenue is given by the equation TR = 100P + 200, where TR is the total revenue and P is the price. If the price elasticity of demand is -2, what is the percentage change in total revenue when the price increases by 10%?
A. -10%
B. -20%
C. 0%
D. 10%
Question 2
A firm is considering investing in a new project with a net present value (NPV) of ₦100,000. The \cost of capital is 10%. What is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%
Question 3
A country's balance of payments account shows a trade deficit of $100 million and a capital account surplus of $50 million. What is the overall balance of payments position?
A. $50 million surplus
B. $100 million deficit
C. $150 million surplus
D. $200 million deficit
Question 4
The demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the supply function is given by Q = 2P - 10, find the equilibrium price and quantity.
A. P = 20, Q = 30
B. P = 30, Q = 20
C. P = 25, Q = 25
D. P = 15, Q = 35
Question 5
The demand for a commodity 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 0.5, what is the price elasticity of supply?
A. 0.5
B. 1
C. 2
D. 3
Question 6
The concept of national income accounting is impor\tant in unders\tanding the performance of an economy. Which of the following is a correct statement about national income accounting?
A. National income accounting is a system of accounts that measures the income and exp\enditure of an economy.
B. National income accounting is a system of accounts that measures the output and employment of an economy.
C. National income accounting is a system of accounts that measures the price level and inflation of an economy.
D. National income accounting is a system of accounts that measures the balance of payments of an economy.
Question 7
A firm's \cost function is given by the equation C = 100 + 20Q, where C is the \cost and Q is the quantity produced. If the price elasticity of demand is -2, what is the percentage change in \cost when the quantity produced increases by 10%?
A. -10%
B. -20%
C. 0%
D. 10%
Question 8
The Agricultural Development Project (ADP) is a government initiative aimed at increa\sing agricultural productivity. What is the primary goal of the ADP?
A. To increase the production of cash crops
B. To increase the production of food crops
C. To increase the production of both cash and food crops
D. To decrease the production of agricultural products
Question 9
A consumer's utility function is given by U = 2x + 3y. The budget constraint is given by 2x + 3y = ₦100. Determine the optimal values of x and y.
A. x = 20, y = 10
B. x = 10, y = 20
C. x = 30, y = 0
D. x = 0, y = 30
Question 10
A country's balance of payments 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 and the value of imports is $80, what is the balance of payments?
A. $10
B. $20
C. $30
D. $40
Question 11
A firm's demand curve is downward sloping because of the law of diminishing marginal utility. Which of the following is a correct statement about the law of diminishing marginal utility?
A. As the quantity of a good consumed increases, the marginal utility of each additional unit decreases.
B. As the quantity of a good consumed increases, the marginal utility of each additional unit increases.
C. The marginal utility of a good is cons\tant regardless of the quantity consumed.
D. The marginal utility of a good is zero when the quantity consumed is zero.
Question 12
A country's GDP is $100 billion, and its government exp\enditure is $20 billion. What is the country's government saving?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 13
A consumer's indifference curve is downward sloping. What does this imply about the consumer's preferences?
A. The consumer prefers more of good X to good Y
B. The consumer prefers more of good Y to good X
C. The consumer is indifferent between good X and good Y
D. The consumer prefers less of good X to good Y
Question 14
A country's GDP is 100 billion naira. The government decides to increase the price of a product by 20%. If the price elasticity of demand is -2, what is the percentage change in the quantity demanded?
A. -10%
B. -20%
C. -30%
D. -40%
Question 15
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦10000, determine the optimal values of L and K.
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 100, K = 25
D. L = 25, K = 100

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: