POST UTME ELIZADE UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is in deficit due to a large trade deficit. The government decides to implement a policy to reduce the trade deficit. U\sing the concept of the balance of payments, explain how the policy affects the country's exchange rate.
A. The policy increases the exchange rate
B. The policy decreases the exchange rate
C. The policy has no effect on the exchange rate
D. The policy increases the exchange rate in the short run but decreases it in the long run
Question 2
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is the country's balance of trade?
A. ₦10 billion surplus
B. ₦10 billion deficit
C. ₦20 billion surplus
D. ₦20 billion deficit
Question 3
A firm operating under perfect competition has a \cost function given by C(q) = 2q^2 + 10q. If the market price is P = 20, what is the profit-maximizing quantity?
A. 10
B. 20
C. 30
D. 40
Question 4
A country's GDP at factor \cost is ₦100 billion, its indirect taxes are ₦20 billion, and its subsidies are ₦10 billion. What is its GDP at market price?
A. ₦120 billion
B. ₦130 billion
C. ₦140 billion
D. ₦150 billion
Question 5
A country's GNP is ₦120 billion, its GDP is ₦100 billion, and its net factor income from abroad is ₦10 billion. What is the country's national income?
A. ₦130 billion
B. ₦120 billion
C. ₦110 billion
D. ₦100 billion
Question 6
The government of a country decides to implement a policy to reduce the budget deficit by increa\sing taxes on luxury goods. However, this policy may have an adverse effect on the economy as it may lead to a decrease in consumer sp\ending and subsequently a decrease in aggregate demand. Which of the following is a potential consequence of this policy?
A. Increase in government revenue
B. Decrease in consumer sp\ending
C. Increase in aggregate demand
D. Decrease in budget deficit
Question 7
A country's GDP is ₦100 billion and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 8
A firm has the following \cost function: C(Q) = 2Q^2 + 10Q. Find the firm's marginal \cost function.
A. MC(Q) = 4Q + 10
B. MC(Q) = 2Q + 10
C. MC(Q) = 4Q - 10
D. MC(Q) = 2Q - 10
Question 9
A consumer's utility function is given by U = 3x + 2y. If the consumer's budget constraint is 3x + 2y = 20, what is the consumer's optimal bundle?
A. (4, 2)
B. (2, 4)
C. (6, 0)
D. (0, 6)
Question 10
A firm's production function is given by Q = 2L^0.5 K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the total product (TP) at these input levels?
A. 4
B. 6
C. 8
D. 10
Question 11
A government imposes a tax on a firm's output. If the firm's supply curve is given by Q = 2P - 10 and the tax rate is 20%, what is the firm's new supply curve?
A. Q = 2P - 12
B. Q = 2P - 8
C. Q = 2P - 6
D. Q = 2P - 4
Question 12
A firm's production function is given by Q = 2L^0.5 K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor (MPL) at these input levels?
A. 1
B. 2
C. 3
D. 4
Question 13
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 marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 14
A consumer has the following utility function: U(x,y) = 2x + 3y. The prices of x and y are ₦5 and ₦10 respectively. Find the consumer's budget constraint.
A. 2x + 3y = 50
B. 2x + 3y = 100
C. 2x + 3y = 150
D. 2x + 3y = 200
Question 15
A consumer has a budget of ₦100 and faces the following prices: Q1 = ₦10, Q2 = ₦20, Q3 = ₦30. If the consumer chooses to buy 2 units of Q1, 1 unit of Q2, and 1 unit of Q3, what is the total exp\enditure on Q2?
A. ₦20
B. ₦30
C. ₦40
D. ₦50

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