POST UTME COAL CITY UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A central bank increases the money supply by 10%. What is the expected effect on the price level?
A. 10% increase
B. 5% increase
C. 0% change
D. 5% decrease
Question 2
A consumer's budget constraint is given by \( P_1x_1 + P_2x_2 = I \), where \( P_1 \) and \( P_2 \) are the prices of the two goods, \( x_1 \) and \( x_2 \) are the quantities consumed, and I is the income. If the prices of the two goods are ₦100 and ₦200, respectively, and the income is ₦1000, what is the optimal bundle of goods?
A. (10, 5)
B. (20, 2)
C. (30, 1)
D. (40, 0.5)
Question 3
Consider a production function given by \( Q = 100K^0.5L^0.5 \), where Q is the output, K is the capital, and L is the labor. If the marginal product of labor is 10, and the wage rate is ₦500, what is the optimal level of labor?
A. 50 workers
B. 100 workers
C. 200 workers
D. 300 workers
Question 4
A country's balance of payments (BOP) is given by the following 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 million and the value of imports is $120 million, what is the balance of payments?
A. -20 million
B. -10 million
C. 10 million
D. 20 million
Question 5
A perfectly competitive firm's supply curve is upward-sloping because of the law of increa\sing \costs. What is the primary reason for this upward-sloping supply curve?
A. The firm's marginal \cost increases as output increases.
B. The firm's average \cost decreases as output increases.
C. The firm's marginal revenue increases as output increases.
D. The firm's fixed \cost decreases as output increases.
Question 6
A consumer's budget constraint is given by 2X + 3Y = ₦150. If the prices of X and Y are ₦50 and ₦75 respectively, find the consumer's optimal bundle.
A. X = 2 units, Y = 1 unit
B. X = 1 unit, Y = 2 units
C. X = 3 units, Y = 0 units
D. X = 0 units, Y = 3 units
Question 7
A country's current account balance is given by the equation CA = X - M. If the country's current X is ₦30 trillion and the current M is ₦20 trillion, calculate the country's current account balance.
A. ₦5 trillion
B. ₦10 trillion
C. ₦15 trillion
D. ₦20 trillion
Question 8
A country's GDP is given by the following equation: GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption is $500 billion, investment is $200 billion, government sp\ending is $300 billion, exports are $100 billion, and imports are $120 billion, what is the country's GDP?
A. 1.38 trillion
B. 1.42 trillion
C. 1.46 trillion
D. 1.50 trillion
Question 9
A consumer's utility function is given by U = 2x^0.5y^0.5, where x and y are the quantities of two goods. If the consumer's current consumption of good x is 4 units and the price of good y is ₦10, what is the marginal utility of good x?
A. 1
B. 2
C. 3
D. 4
Question 10
A firm's production function is given by \( Q = 2K^0.5L^0.5 \). If the firm is currently producing 100 units of output with 10 units of capital and 20 units of labor, what is the marginal product of labor?
A. 5
B. 10
C. 15
D. 20
Question 11
A firm's production function is represented by the equation: Q = 2L^2 + 3K. What is the marginal product of labor (MPL) function?
A. MPL = 4L
B. MPL = 6K
C. MPL = 2L + 3K
D. MPL = 4L + 6K
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and the firm's current output price is p = 30, calculate the firm's maximum profit.
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 13
A country's current account surplus (CAS) is ₦200 million. What is the value of the capital account deficit (CAD) if the balance of payments (BOP) accounts are in equilibrium?
A. ₦100 million
B. ₦200 million
C. ₦300 million
D. ₦400 million
Question 14
A firm has a production function given by Q = 2L^0.5K^0.5. The firm's \cost function is given by C = 10L + 20K. What is the firm's \cost-minimizing input bundle?
A. L = 4, K = 16
B. L = 16, K = 4
C. L = 8, K = 8
D. L = 2, K = 2
Question 15
A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labor, and H is capital. If the firm's current labor and capital inputs are 4 and 9 units respectively, what is the total \cost of labor?
A. 8
B. 16
C. 32
D. 64

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: