POST UTME COVENANT UNIVERSITY 2022 Economics | Objective

Are you preparing for POST UTME COVENANT UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
Correct A. 20%
B. 10%
C. 5%
D. 15%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A firm is producing a good with a production function Q = 2L^0.5 K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm is currently producing 100 units of output with 10 units of labor and 20 units of capital, what is the marginal product of labor?
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 3
The balance of payments accounts for a country are given by the following equations: CA = X - M, where CA is the current account balance, X is the exports, and M is the imports. If the country's exports are 100 billion naira and its imports are 150 billion naira, what is the current account balance?
Correct A. -50 billion naira
B. 50 billion naira
C. 100 billion naira
D. 150 billion naira

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is the consumption, I is the investment, G is the government sp\ending, X is the exports, and M is the imports. If the country's consumption is 500 billion naira, its investment is 200 billion naira, its government sp\ending is 300 billion naira, its exports are 100 billion naira, and its imports are 150 billion naira, what is the country's GDP?
Correct A. 1.2 trillion naira
B. 1.1 trillion naira
C. 1.3 trillion naira
D. 1.4 trillion naira

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
The supply of a commodity is given by the equation Qs = 100 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied when the price increases by 10%?
Correct A. 20%
B. 10%
C. 5%
D. 15%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A consumer's indifference curve is steeper than another consumer's indifference curve. What can be inferred about the two consumers?
Correct A. The first consumer has a higher marginal rate of substitution than the second consumer.
B. The first consumer has a lower marginal rate of substitution than the second consumer.
C. The first consumer has a higher income than the second consumer.
D. The first consumer has a lower income than the second consumer.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A country's GDP grows at a rate of 5% per annum, while its population grows at a rate of 2% per annum. What is the growth rate of per capita GDP?
A. 3%
Correct B. 4%
C. 5%
D. 6%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A farmer produces wheat and corn on a 100-hectare farm. The marginal product of wheat is 20 units per hectare, while the marginal product of corn is 15 units per hectare. If the farmer allocates 60 hectares to wheat and 40 hectares to corn, what is the total product of wheat and corn?
Correct A. 1200 units of wheat and 600 units of corn
B. 1000 units of wheat and 800 units of corn
C. 800 units of wheat and 1200 units of corn
D. 600 units of wheat and 1000 units of corn

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A country imposes a tariff of 20% on imported goods. If the world price of the good is $100, what is the domestic price of the good?
Correct A. $120
B. $110
C. $100
D. $90

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 4 and 9, respectively, what is the firm's output?
A. 8
B. 10
Correct C. 12
D. 14

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
The elasticity of demand for a commodity is measured by the percentage change in the quantity demanded in response to a 1% change in the price. If the price elasticity of demand for a commodity is 0.5, what is the percentage change in the quantity demanded if the price increases by 10%?
A. 5%
B. 10%
Correct C. 20%
D. 50%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A country's balance of payments is in equilibrium when the current account and capital account are balanced. If a country's current account deficit is $100 million and its capital account surplus is $150 million, what is the balance of payments deficit?
A. $50 million
Correct B. $100 million
C. $150 million
D. $200 million

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input increases by 20% and its capital input remains cons\tant, what is the percentage change in the quantity produced?
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 14
A country's agricultural sector is characterized by a high degree of price rigidity, which leads to a high degree of price stickiness. What is the likely effect of this price stickiness on the country's agricultural sector?
A. Increased production
Correct B. Decreased production
C. Increased employment
D. Decreased employment

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's revenue is maximized at a price of $20, what is the quantity demanded at this price?
A. 40
Correct B. 50
C. 60
D. 70

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.
A. 50 units, ₦150
Correct B. 75 units, ₦100
C. 100 units, ₦50
D. 25 units, ₦200

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal input combination.
Correct A. L = 4, K = 4
B. L = 16, K = 1
C. L = 1, K = 16
D. L = 2, K = 2

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A consumer's budget constraint is given by 2X + 3Y = 12. If the price of X is ₦2 and the price of Y is ₦3, find the optimal consumption bundle.
Correct A. X = 2, Y = 4
B. X = 4, Y = 2
C. X = 6, Y = 0
D. X = 0, Y = 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A firm's revenue function is given by R(Q) = 100Q - 2Q^2. If the \cost function is C(Q) = 20Q + 10, find the profit-maximizing quantity.
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A consumer's indifference curve is given by U = 2X + 3Y. If the budget constraint is 2X + 3Y = 12, find the optimal consumption bundle.
Correct A. X = 2, Y = 4
B. X = 4, Y = 2
C. X = 6, Y = 0
D. X = 0, Y = 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds a certain threshold. What is the name of this threshold?
A. The Marshall-Lerner condition
B. The Balassa-Samuelson effect
C. The J-curve effect
Correct D. The Marshall-Lerner threshold

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the monopolist's optimal price?
Correct A. ₦25
B. ₦30
C. ₦35
D. ₦40

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A consumer has a utility function given by U = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 12. What is the consumer's optimal bundle?
A. (4, 0)
Correct B. (2, 4)
C. (0, 4)
D. (4, 4)

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). What is the name of the term \( X - M \)?
Correct A. Net exports
B. Gross domestic product
C. Gross national product
D. National income

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A firm's production function is given by Q = 2L^0.5K^0.5. The firm's \cost function is given by C = 10L + 20K. What is the firm's optimal input bundle?
A. (10, 10)
B. (20, 5)
C. (5, 20)
Correct D. (15, 15)

Correct Answer: D

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