POST UTME ELIZADE UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's demand for a particular good can be represented by the demand curve D = 100 - 2P, where D is demand and P is price. If the supply curve is given by S = 2P + 10, what is the equilibrium price and quantity?
A. P^* = 22.5, Q^* = 40
B. P^* = 20, Q^* = 30
C. P^* = 25, Q^* = 35
D. P^* = 30, Q^* = 40
Question 2
A firm's production function is given by \( Q = 100K^{\frac{1}{2}}L^{\frac{1}{2}} \), where (Q) is the output, (K) is the capital and (L) is the labor. If the firm's capital and labor are increased by 20% and 15% respectively, what is the percentage change in the output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 3
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its government exp\enditure is ₦30 billion. Find the country's national income.
A. ₦80 billion
B. ₦90 billion
C. ₦100 billion
D. ₦110 billion
Question 4
A central bank can increase the money supply by
A. buying government securities from the public
B. selling government securities to the public
C. printing more money
D. reducing the reserve requirement for commercial banks
Question 5
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 GDP is ₦100 billion, and the values of C, I, G, X, and M are ₦50 billion, ₦20 billion, ₦15 billion, ₦30 billion, and ₦10 billion respectively, what is the value of X?
A. ₦20 billion
B. ₦25 billion
C. ₦30 billion
D. ₦35 billion
Question 6
A consumer has a utility function U(x, y) = 2x + 3y. If the prices of x and y are ₦10 and ₦20 respectively, and the consumer's income is ₦100, find the optimal bundle of x and y.
A. x = 5, y = 2
B. x = 3, y = 4
C. x = 2, y = 5
D. x = 4, y = 3
Question 7
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is cons\tant and equal to 2, what is the price at which the quantity demanded is 60?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 8
A country's balance of payments is given by the equation BOP = X - M + \( F - I \), where X is exports, M is imports, F is foreign investment, and I is foreign debt. If the country's balance of payments is ₦10 billion, exports are ₦25 billion, imports are ₦15 billion, foreign investment is ₦5 billion, and foreign debt is ₦3 billion, what is the value of the current account balance?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 9
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. Find the price elasticity of demand when the quantity demanded is 50 units.
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 10
Calculate the price elasticity of demand for a product whose price is reduced from ₦100 to ₦90, and the quantity demanded increases from 100 units to 120 units.
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 11
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, what is the consumer's optimal bundle of x and y?
A. x = 60, y = 40
B. x = 40, y = 60
C. x = 50, y = 50
D. x = 70, y = 30
Question 12
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the monopolist's marginal revenue is MR = 200 - 4Q, find the profit-maximizing quantity and price.
A. 50 units, ₦150
B. 75 units, ₦120
C. 100 units, ₦100
D. 125 units, ₦80
Question 13
A firm's production function can be represented by the equation Q = f(K, L), where Q is output, K is capital, and L is labor. If the production function is given by Q = 2K^0.5L^0.5, what is the value of the marginal product of labor (MPL) if the firm is currently u\sing 4 units of capital and 4 units of labor?
A. 0.5
B. 1
C. 2
D. 4
Question 14
A country's balance of payments (BOP) accounts can be classified into three main categories: (i) Current account, (ii) Capital account, and (iii) Financial account. Which of the following is NOT a component of the current account?
A. Exports
B. Imports
C. Foreign direct investment
D. Net factor income from abroad
Question 15
A country's GDP is given by the equation Y = C + I + G, where C is consumption, I is investment, and G is government sp\ending. If the country's GDP is ₦1 trillion, and the consumption and investment are ₦500 billion and ₦200 billion respectively, what is the government sp\ending?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion

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