POST UTME DELSU 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The Marshall-Lerner condition states that if the sum of the elasticities of demand for exports and imports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. Which of the following is a correct interpretation of the Marshall-Lerner condition?
A. A devaluation will lead to a decrease in imports and an increase in exports.
B. A devaluation will lead to an increase in imports and a decrease in exports.
C. A devaluation will lead to an improvement in the balance of payments if the sum of the elasticities of demand for exports and imports is greater than 1.
D. A devaluation will lead to a decrease in exports and an increase in imports.
Question 2
The Central Bank of Nigeria (CBN) implemented a monetary policy to reduce inflation. What is the likely effect of this policy on the money supply?
A. The money supply will increase.
B. The money supply will decrease.
C. The money supply will remain unchanged.
D. The money supply will fluctuate.
Question 3
A country's GNP is ₦120 billion, its imports are ₦25 billion, and its exports are ₦35 billion. What is the country's net foreign income?
A. ₦15 billion
B. ₦25 billion
C. ₦35 billion
D. ₦45 billion
Question 4
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. What is the effect of an increase in the price of a good on the country's GDP?
A. The GDP increases.
B. The GDP decreases.
C. The GDP remains unchanged.
D. The GDP increases by the amount of the price increase.
Question 5
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, and the prices of the two goods are $2 and $3, respectively, what is the consumer's optimal bundle of goods?
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 6
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is exports, M is imports, F is foreign investment and I is domestic investment. If the country's exports are $100 billion, imports are $80 billion, foreign investment is $20 billion and domestic investment is $30 billion, what is the balance of payments?
A. 10
B. 20
C. 30
D. 40
Question 7
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is MR = 200 - 2Q, what is the firm's optimal price?
A. 20
B. 30
C. 40
D. 50
Question 8
The National Bureau of Statistics (NBS) reported that the Gross Domestic Product (GDP) of Nigeria grew by 3.5% in the first quarter of the year. What is the implication of this growth rate for the country's economic development?
A. The country's economic development is improving.
B. The country's economic development is stagnating.
C. The country's economic development is deteriorating.
D. The country's economic development is unaffected.
Question 9
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the firm's marginal revenue is MR = 50 - 2Q, what is the optimal price and quantity?
A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20
Question 10
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal benefit
B. marginal \cost
C. average \cost
D. average revenue
Question 11
A country's GNP is calculated as the sum of the value of all final goods and services produced within its borders, plus the value of all income earned by its citizens from abroad. What is the effect of an increase in the price of a good on the country's GNP?
A. The GNP increases.
B. The GNP decreases.
C. The GNP remains unchanged.
D. The GNP increases by the amount of the price increase.
Question 12
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue is MR = 50 - 2Q, what is the optimal price and quantity?
A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20
Question 13
A country's GDP is given by the 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 ₦200 billion, investment is ₦50 billion, government sp\ending is ₦100 billion, exports are ₦500 billion, and imports are ₦600 billion, what is the country's GDP?
A. ₦750 billion
B. ₦800 billion
C. ₦850 billion
D. ₦900 billion
Question 14
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the monopolist's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 15
A firm's production function is given by the equation Q = 2L + 3K, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the firm has 10 labor hours and 5 units of capital, what is the quantity produced?
A. 20 units
B. 25 units
C. 30 units
D. 35 units

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