POST UTME ELIZADE UNIVERSITY 2020 Economics | Objective

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Question 1
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's current GDP is ₦100 billion, and the current values of C, I, G, X, and M are ₦20 billion, ₦30 billion, ₦10 billion, ₦40 billion, and ₦20 billion respectively, what is the value of the country's net exports?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 2
A firm's revenue function is given by the equation R = 3Q^2 - 5Q + 2, where R is the total revenue and Q is the quantity sold. If the firm sells 5 units, find the total revenue.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 3
A monopolist faces a demand curve given by the equation \( P = 100 - 2Q \). If the monopolist's marginal \cost is \( MC = 10 \), find the monopolist's profit-maximizing quantity.
A. 50
B. 75
C. 100
D. 125
Question 4
The law of diminishing marginal returns states that as the quantity of a variable input increases, the marginal product of that input will eventually decrease. What is the reason for this decrease?
A. The law of diminishing marginal returns is a result of the increa\sing marginal \cost of production
B. The law of diminishing marginal returns is a result of the decrea\sing marginal product of labor
C. The law of diminishing marginal returns is a result of the increa\sing marginal product of capital
D. The law of diminishing marginal returns is a result of the decrea\sing marginal product of land
Question 5
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. If the original supply curve was ( S(x) = 2x + 5 ) and the tax causes the new supply curve to be ( S'(x) = 2x + 10 ), find the deadweight loss of the tax.
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 6
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 supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, find the elasticity of demand.
A. 0.5
B. 1
C. 2
D. 3
Question 7
A country's government has decided to implement a new tax on all imported goods. The tax rate is 15% of the good's value. If a consumer buys a pair of shoes worth ₦15,000, how much tax will they pay?
A. ₦1,500
B. ₦2,250
C. ₦3,750
D. ₦4,500
Question 8
A country's GDP is ₦1,000,000,000. If the country's population is 20 million, and the average GDP per capita is ₦50,000, what is the country's GDP per capita?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 9
A country's balance of payments is given by the following equation: BOP = X - M - \( I - S \). If X = 100, M = 50, I = 20, and S = 30, what is the balance of payments?
A. 20
B. 30
C. 40
D. 50
Question 10
A firm operating in a perfectly competitive market is characterized by which of the following?
A. A \single price maker
B. Many firms producing a homogeneous product
C. A firm with market power
D. A firm with a fixed price
Question 11
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is 20, what is the quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 12
A country's GDP is given by the equation \( GDP = C + I + G + \( X - M \ \) ). If the country's consumption is \( C = 1000 \), investment is \( I = 500 \), government sp\ending is \( G = 2000 \), exports are \( X = 1500 \), and imports are \( M = 1000 \), find the country's GDP.
A. ₦6000
B. ₦7000
C. ₦8000
D. ₦9000
Question 13
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is ₦10. What is the profit-maximizing price and quantity?
A. P = ₦40, Q = 30
B. P = ₦30, Q = 40
C. P = ₦20, Q = 50
D. P = ₦50, Q = 20
Question 14
A country's inflation rate is given by the equation π = \( P1 - P0 \)/P0 * 100. If the country's current inflation rate is 10%, and the current values of P1 and P0 are ₦100 and ₦90 respectively, what is the value of the country's price level?
A. ₦100
B. ₦110
C. ₦120
D. ₦130
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 4 and K = 9, what is the firm's current output?
A. 12
B. 15
C. 18
D. 20

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