POST UTME EKSU 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A central bank increases the money supply in an economy by 10%. What is the expected effect on the price level?
A. 10% increase
B. 5% increase
C. no change
D. 5% decrease
Question 2
A country's balance of payments account shows a trade deficit of $10 billion. If the country's GDP is $500 billion, what is the trade deficit as a percentage of GDP?
A. 2%
B. 3%
C. 4%
D. 5%
Question 3
Suppose a country's GDP is $100 billion, and its GNP is $120 billion. What is the net factor income from abroad?
A. $20 billion
B. $30 billion
C. $40 billion
D. $50 billion
Question 4
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 100, y = 50
B. x = 50, y = 100
C. x = 200, y = 0
D. x = 0, y = 200
Question 5
The government of Nigeria imposes a tax on imported goods to raise revenue. What is the effect of this tax on the quantity of imported goods demanded?
A. Increase the quantity of imported goods demanded
B. Decrease the quantity of imported goods demanded
C. Have no effect on the quantity of imported goods demanded
D. Increase the price of imported goods
Question 6
A firm's demand function is given by Q = 100 - 2P. The firm's marginal \cost is MC = 10 + 2Q. Find the profit-maximizing price and quantity.
A. P = 25, Q = 75
B. P = 30, Q = 80
C. P = 35, Q = 85
D. P = 40, Q = 90
Question 7
A country's GDP is $100 billion, and its GDP deflator is 120. What is the country's real GDP?
A. $100 billion
B. $80 billion
C. $120 billion
D. $150 billion
Question 8
Consider a firm operating in a perfectly competitive market with a cons\tant returns to scale production function. If the firm's average \cost curve intersects its marginal \cost curve at a point where the firm is producing at its optimal level of output, what can be concluded about the firm's profit-maximizing output level?
A. The firm is producing at its minimum efficient scale.
B. The firm is producing at its maximum efficient scale.
C. The firm is producing at its optimal level of output.
D. The firm is producing at its minimum \cost level.
Question 9
A firm has a \cost function ( C(q) = 2q^2 + 5q ) and a revenue function ( R(q) = 3q^2 + 2q ). Find the profit-maximizing quantity.
A. 10
B. 20
C. 30
D. 40
Question 10
A country's balance of payments account shows a trade deficit of $100 million and a capital account surplus of $150 million. What is the overall balance of payments position of the country?
A. A trade surplus of $50 million.
B. A trade deficit of $50 million.
C. A capital account surplus of $50 million.
D. A current account deficit of $50 million.
Question 11
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is the balance of trade?
A. ₦10 billion surplus
B. ₦10 billion deficit
C. ₦20 billion surplus
D. ₦20 billion deficit
Question 12
A firm's demand function is given by Qd = 100 - 2P. If the firm's supply function is given by Qs = 2P - 10, what is the equilibrium price?
A. $20
B. $30
C. $40
D. $50
Question 13
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y.
A. (100, 100)
B. (200, 50)
C. (50, 200)
D. (0, 0)
Question 14
A firm's \cost function is given by C = 2Q^2 + 10Q + 100. If the firm's revenue function is R = 3Q^2 + 20Q, find the profit-maximizing quantity.
A. Q = 5
B. Q = 10
C. Q = 15
D. Q = 20
Question 15
The demand for a commodity is said to be elastic if the percentage change in the quantity demanded is greater than the percentage change in the price. Which of the following is a characteristic of an elastic demand?
A. The demand curve is steeper
B. The demand curve is flatter
C. The demand curve is vertical
D. The demand curve is horizontal

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