POST UTME EKSU 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP at market price is ₦100 billion. If the GDP at factor \cost is ₦120 billion, what is the indirect tax rate?
A. 10%
B. 15%
C. 20%
D. 25%
Question 2
A central bank uses open market operations to increase the money supply. Which of the following would be a consequence of this action?
A. A decrease in the interest rate
B. An increase in the interest rate
C. A decrease in the money supply
D. No change in the interest rate
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is $10 per unit, and the price of capital is $20 per unit, what is the minimum \cost of production?
A. $400
B. $800
C. $1,200
D. $2,000
Question 4
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 the percentage change in its exchange rate. Which of the following scenarios would lead to an improvement in the balance of payments?
A. An increase in the price of a country's exports and a decrease in the price of its imports
B. A decrease in the price of a country's exports and an increase in the price of its imports
C. An increase in the price of a country's exports and an increase in the price of its imports
D. A decrease in the price of a country's exports and a decrease in the price of its imports
Question 5
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 10L^0.5K^0.5. If the price of labor is $10 per unit and the price of capital is $20 per unit, what is the \cost-minimizing combination of labor and capital?
A. L = 4, K = 2
B. L = 2, K = 4
C. L = 1, K = 5
D. L = 5, K = 1
Question 6
A country has a trade deficit of $100 million and a GDP of $500 billion. If the country's exchange rate is 1 USD = 100 Naira, what is the country's inflation rate?
A. 2%
B. 5%
C. 10%
D. 15%
Question 7
Consider a consumer with a utility function U(x,y) = 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 p_x = 2 and p_y = 3, respectively, what is the consumer's optimal bundle of goods?
A. (x,y) = (2,2)
B. (x,y) = (3,1)
C. (x,y) = (4,0)
D. (x,y) = (0,4)
Question 8
A country's agricultural sector is characterized by a high degree of inefficiency and low productivity. Which of the following policies would be most effective in addres\sing this issue?
A. Providing subsidies to farmers
B. Implementing price controls
C. Investing in agricultural research and development
D. Impo\sing tariffs on imported agricultural products
Question 9
A consumer has the following utility function: U = 2x^0.5y^0.5. If the prices of x and y are $5 and $10 respectively, and the consumer has an income of $100, what is the consumer's optimal bundle of x and y?
A. x = 4, y = 2
B. x = 2, y = 4
C. x = 1, y = 5
D. x = 5, y = 1
Question 10
A perfectly competitive market has a downward-sloping demand curve. If the market price falls from ₦100 to ₦80, and the quantity demanded increases from 100 units to 120 units, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 11
A firm's supply function is given by Q = 2P + 10. If the price of the good is $5, what is the quantity supplied?
A. 10
B. 20
C. 30
D. 40
Question 12
A country's national income is $100 billion, and its government exp\enditure is $20 billion. If the marginal propensity to consume is 0.8, what is the multiplier?
A. 2.5
B. 5
C. 10
D. 20
Question 13
A firm has a 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 has 4 units of labor and 9 units of capital, what is the firm's optimal production level?
A. 4
B. 6
C. 8
D. 10
Question 14
A firm is considering investing in a new project that has a high expected return but also a high level of risk. Which of the following would be a consequence of this investment?
A. An increase in the firm's expected return
B. A decrease in the firm's expected return
C. An increase in the firm's risk
D. A decrease in the firm's risk
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%

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