POST UTME EKSU 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A farmer produces 100 units of wheat and 80 units of maize. If the price of wheat is ₦10 per unit and the price of maize is ₦8 per unit, what is the opportunity \cost of producing one more unit of wheat?
A. ₦8
B. ₦10
C. ₦12
D. ₦15
Question 2
A country's balance of payments is given by the equation BOP = X - M. If the country's exports are ₦1000 and its imports are ₦800, what is the country's balance of payments?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 3
A country has a trade balance of $100 million and a current account deficit of $200 million. If the exchange rate is 1 USD = 100 Naira, what is the value of the trade balance in Naira?
A. ₦10,000 million
B. ₦20,000 million
C. ₦30,000 million
D. ₦40,000 million
Question 4
Consider a firm operating in a monopolistically competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, calculate the optimal input combination that minimizes \costs, given a market price of ₦500 per unit of output.
A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 150, K = 150
Question 5
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 = ₦100 and r = ₦200, calculate the optimal input combination that minimizes \costs, given a market price of ₦500 per unit of output.
A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 150, K = 150
Question 6
A firm has the following \cost function: C = 100 + 2Q + 0.5Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 100 units, what is the total \cost?
A. 1500
B. 2000
C. 2500
D. 3000
Question 7
A central bank is considering a monetary policy to reduce inflation. Which of the following instruments would be most effective in achieving this goal?
A. Open market operations
B. Reserve requirements
C. Discount rate
D. Fiscal policy
Question 8
In a perfectly competitive market, if the demand for a commodity increases, what will happen to the equilibrium price?
A. The equilibrium price will decrease
B. The equilibrium price will increase
C. The equilibrium price will remain unchanged
D. The equilibrium price will fluctuate
Question 9
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 J-curve effect
C. The balance of payments equilibrium
D. The trade creation effect
Question 10
A consumer has a budget of ₦500 and faces the following prices: Good A = ₦100, Good B = ₦150. If the consumer's indifference curve is given by the equation \( U = 2x + 3y \), where x and y are the quantities of Good A and Good B respectively, what is the consumer's optimal bundle?
A. (2, 3)
B. (3, 2)
C. (1, 4)
D. (4, 1)
Question 11
A firm's demand curve is given by Q = 100 - 2P. If the firm's price is increased by 20%, what will be the percentage change in quantity demanded?
A. -10%
B. -20%
C. -30%
D. -40%
Question 12
A firm faces the following demand curve: \( Q = 100 - 2P \). If the firm's marginal \cost is given by the equation \( MC = 10 + 2Q \), what is the firm's profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 13
A country's balance of payments is in surplus when its exports exceed its imports. What is the effect of this surplus on the country's exchange rate?
A. The exchange rate will appreciate
B. The exchange rate will depreciate
C. The exchange rate will remain unchanged
D. The exchange rate will fluctuate
Question 14
A farmer in Nigeria decides to allocate 100 hectares of land between two crops: maize and yams. The marginal product of maize is 20 tons per hectare, while the marginal product of yams is 15 tons per hectare. If the farmer's opportunity \cost of time is ₦500 per hour, and it takes 10 hours to plant and harvest one hectare of maize, determine the optimal allocation of land between maize and yams.
A. 50 hectares maize, 50 hectares yams
B. 60 hectares maize, 40 hectares yams
C. 70 hectares maize, 30 hectares yams
D. 80 hectares maize, 20 hectares yams
Question 15
Determine the returns to scale for a firm that experiences a 20% increase in all inputs and a 25% increase in output.
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale

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