POST UTME DELSU 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where BOP is the balance of payments, X is the value of exports, M is the value of imports, F is the value of foreign investment, and I is the value of domestic investment. If the value of exports is $100, the value of imports is $80, the value of foreign investment is $20, and the value of domestic investment is $10, calculate the balance of payments.
A. $30
B. $40
C. $50
D. $60
Question 2
A firm is considering investing in a new project that has an expected return of 15% per annum and a s\tandard deviation of 20% per annum. If the firm's \cost of capital is 10% per annum, what is the project's internal rate of return (IRR)?
A. 10%
B. 12%
C. 15%
D. 18%
Question 3
A firm's supply function is given by Q = 2P + 50, where Q is the quantity supplied and P is the price. If the price is $20, calculate the quantity supplied.
A. 50
B. 75
C. 100
D. 125
Question 4
A firm faces a downward-sloping demand curve for its product. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain the same
D. Total revenue will increase at first, then decrease
Question 5
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is $100 and the prices of the two goods are $5 and $10 respectively, calculate the consumer's optimal bundle.
A. (10, 20)
B. (20, 10)
C. (15, 15)
D. (25, 5)
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. -5%
B. 0%
C. 5%
D. 10%
Question 7
A consumer has a budget constraint of 100 units of currency and faces the following prices for two goods: Q1 = 5 units of currency per unit and Q2 = 10 units of currency per unit. If the consumer's indifference curve is \tangent to the budget constraint at the point where Q1 = 20 units and Q2 = 10 units, what is the marginal rate of substitution (MRS) between the two goods?
A. 0.5
B. 1
C. 2
D. 5
Question 8
A firm's revenue function is given by R(x) = 2x^2 + 5x - 3. Find the marginal revenue function and explain its significance.
A. The marginal revenue function is given by MR(x) = 4x + 5.
B. The marginal revenue function is given by MR(x) = 2x + 5.
C. The marginal revenue function is given by MR(x) = 4x - 5.
D. The marginal revenue function is given by MR(x) = 2x - 5.
Question 9
A consumer has a budget of ₦1000 and faces the following prices for two goods: good X \costs ₦200 and good Y \costs ₦300. If the consumer buys 2 units of good X, how many units of good Y can the consumer buy?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 10
A country's GNP is ₦120 billion, its imports are ₦25 billion, and its exports are ₦20 billion. What is its GNP at market price?
A. ₦125 billion
B. ₦130 billion
C. ₦135 billion
D. ₦140 billion
Question 11
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is its GDP at market price?
A. ₦120 billion
B. ₦130 billion
C. ₦140 billion
D. ₦150 billion
Question 12
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it is currently producing Q = 100 units of output, what is the firm's current total \cost of production?
A. ₦2000
B. ₦2500
C. ₦3000
D. ₦3500
Question 13
A firm's demand function is given by Q = 100 - 2P + 3I, where Q is the quantity demanded, P is the price, and I is the income. If the price is $10 and the income is $500, calculate the quantity demanded.
A. 50
B. 75
C. 100
D. 125
Question 14
The concept of opportunity \cost is closely related to the law of scarcity. Explain how the law of scarcity leads to opportunity \cost, u\sing a numerical example.
A. The law of scarcity leads to opportunity \cost because it forces individuals to make choices between different goods and services.
B. The law of scarcity leads to opportunity \cost because it results in the allocation of resources to their most valuable uses.
C. The law of scarcity leads to opportunity \cost because it causes the value of one good to increase as the quantity of another good decreases.
D. The law of scarcity leads to opportunity \cost because it results in the production of goods and services that are not in high demand.
Question 15
A country's GDP is given by the following equation: GDP = C + I + G + \( X - M \). Explain the significance of each component of the equation.
A. C represents consumption, I represents investment, G represents government sp\ending, X represents exports, and M represents imports.
B. C represents consumption, I represents government sp\ending, G represents investment, X represents imports, and M represents exports.
C. C represents government sp\ending, I represents investment, G represents consumption, X represents exports, and M represents imports.
D. C represents consumption, I represents imports, G represents exports, X represents government sp\ending, and M represents investment.

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