POST UTME ELIZADE UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (x,y) = (100, 0)
B. (x,y) = (80, 20)
C. (x,y) = (60, 40)
D. (x,y) = (40, 60)
Question 2
A firm's demand curve is given by Q = 100 - 2P, and its supply curve is given by Q = 2P - 100. What is the equilibrium price and quantity?
A. ₦50, 50 units
B. ₦75, 25 units
C. ₦100, 0 units
D. ₦200, 100 units
Question 3
The demand for a good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the good is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price. What is the equilibrium price and quantity?
A. Price: ₦50, Quantity: 50
B. Price: ₦75, Quantity: 75
C. Price: ₦100, Quantity: 100
D. Price: ₦125, Quantity: 125
Question 4
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \). If C = ₦100 billion, I = ₦20 billion, G = ₦30 billion, X = ₦150 billion, and M = ₦80 billion, what is the country's GDP?
A. ₦220 billion
B. ₦230 billion
C. ₦240 billion
D. ₦250 billion
Question 5
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports increases from ₦100 to ₦120 and the value of imports remains unchanged at ₦80, what will be the effect on the balance of payments?
A. The balance of payments will increase.
B. The balance of payments will decrease.
C. The balance of payments will remain unchanged.
D. The effect on the balance of payments is uncertain.
Question 6
A firm is considering two different production methods to produce a certain good. Method A requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit produced. Method B requires an initial investment of ₦150,000 and has a variable \cost of ₦30 per unit produced. If the firm produces 10,000 units, what is the total \cost of production for each method?
A. Method A: ₦500,000, Method B: ₦400,000
B. Method A: ₦450,000, Method B: ₦550,000
C. Method A: ₦600,000, Method B: ₦450,000
D. Method A: ₦350,000, Method B: ₦650,000
Question 7
A consumer's utility function is given by ( u(x,y) = 3x + 2y ). If the prices of x and y are ₦5 and ₦10 respectively, and the consumer's income is ₦1000, what is the optimal bundle of x and y?
A. x = 40, y = 20
B. x = 60, y = 10
C. x = 80, y = 5
D. x = 100, y = 0
Question 8
A firm's demand for labor is given by the equation Q = 100L^\( -1/2 \), where Q is the quantity of labor demanded and L is the wage rate. If the wage rate increases from ₦100 to ₦120, what will be the effect on the quantity of labor demanded?
A. The quantity of labor demanded will increase.
B. The quantity of labor demanded will decrease.
C. The quantity of labor demanded will remain unchanged.
D. The effect on the quantity of labor demanded is uncertain.
Question 9
The Central Bank of Nigeria (CBN) has introduced a new monetary policy aimed at reducing inflation. The policy involves increa\sing the reserve requirement for commercial banks. What is the likely effect of this policy on the money supply?
A. Increase the money supply
B. Decrease the money supply
C. Have no effect on the money supply
D. Increase the interest rate
Question 10
A consumer has a budget of ₦10,000 and wants to buy two goods, A and B. The price of good A is ₦2,000 and the price of good B is ₦3,000. If the consumer sp\ends all their budget, what is the maximum quantity of good B that can be bought?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 11
A country's import demand function is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the country's export supply function is given by Qs = 50 + P, what is the equilibrium price and quantity?
A. P = ₦50, Q = 75
B. P = ₦75, Q = 50
C. P = ₦100, Q = 25
D. P = ₦25, Q = 100
Question 12
A monopolist faces a demand curve given by \( Q = 100 - 2P \). If the marginal \cost is ₦20, what is the optimal price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 13
A firm is considering two different production methods to produce a certain good. Method A requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit produced. Method B requires an initial investment of ₦150,000 and has a variable \cost of ₦30 per unit produced. If the firm produces 10,000 units, what is the total \cost of production for each method?
A. Method A: ₦500,000, Method B: ₦400,000
B. Method A: ₦450,000, Method B: ₦550,000
C. Method A: ₦600,000, Method B: ₦450,000
D. Method A: ₦350,000, Method B: ₦650,000
Question 14
The government has introduced a new policy to reduce poverty. The policy involves providing a subsidy to farmers to increase food production. What is the likely effect of this policy on the price of food?
A. Increase the price of food
B. Decrease the price of food
C. Have no effect on the price of food
D. Increase the supply of food
Question 15
A consumer's budget constraint is given by the equation 2X + 3Y = 12, where X is the quantity of good X consumed and Y is the quantity of good Y consumed. If the price of good X increases from ₦2 to ₦3, what will be the effect on the quantity of good Y consumed?
A. The quantity of good Y consumed will increase.
B. The quantity of good Y consumed will decrease.
C. The quantity of good Y consumed will remain unchanged.
D. The effect on the quantity of good Y consumed is uncertain.

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