POST UTME COVENANT UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A central bank can use the following tools to control inflation. Which one is NOT a tool?
A. Monetary policy
B. Fiscal policy
C. Supply-side policy
D. Demand-side policy
Question 2
A firm's \cost function is given by C = 100 + 2L + 3K, where C is the total \cost, L is labor, and K is capital. If the firm's current labor and capital inputs are 50 units and 200 units respectively, what is the total \cost?
A. ₦1,100
B. ₦1,200
C. ₦1,300
D. ₦1,400
Question 3
A country's GDP is ₦100 billion and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 4
Suppose the demand for a commodity is given by the equation Qd = 100 - 2P and the supply is given by Qs = 2P - 10. If the equilibrium price is 15, calculate the equilibrium quantity.
A. 50
B. 60
C. 70
D. 80
Question 5
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 100 units and 400 units respectively, what is the marginal product of labor (MPL) when the firm is producing at its current level of output?
A. 25
B. 50
C. 75
D. 100
Question 6
A firm's production function is given by Q = 100K^\( 1/2 \), where Q is the quantity produced and K is the capital stock. If the firm's capital stock is ₦100 million, what is the quantity produced?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 7
The demand for a product 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 8
Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects the average revenue (AR) curve at point E, where the price is ₦100, and the quantity supplied is 100 units, what is the opportunity \cost of producing one more unit of the good?
A. ₦100
B. ₦50
C. ₦200
D. ₦250
Question 9
A country's balance of payments (BOP) accounts can be affected by the following factors. Which one is NOT a factor?
A. Trade in goods and services
B. Investment income
C. Transfer payments
D. Changes in the exchange rate
Question 10
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 100 units of the good, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum \cost of producing 100 units of the good?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 11
A firm's demand curve is given by \( Q = 100 - 2P \). If the firm's supply curve is given by \( Q = 2P - 50 \), what is the equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 12
A firm is considering two investment projects, A and B. Project A has a \cost of ₦100,000 and a return of ₦120,000, while project B has a \cost of ₦150,000 and a return of ₦180,000. If the firm has a \cost of capital of 10%, which project should it choose?
A. Project A
B. Project B
C. Both projects
D. Neither project
Question 13
A firm's demand for a commodity is given by the equation Qd = 100 - 2P and the supply is given by Qs = 2P - 10. If the equilibrium price is 15, calculate the equilibrium quantity.
A. 50
B. 60
C. 70
D. 80
Question 14
The government of a country decides to implement a new tax on luxury goods to reduce income inequality. The tax rate is set at 20% of the good's price. If the demand for the good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price, and the supply of the good is given by the equation Q = 2P - 100, find the equilibrium price and quantity of the good.
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 15
The demand for a product 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 percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%

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