POST UTME ELIZADE UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments account shows a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. If the capital account surplus is ₦20 billion, calculate the overall balance of payments deficit u\sing the balance of payments identity.
A. ₦30 billion
B. ₦40 billion
C. ₦50 billion
D. ₦60 billion
Question 2
A country's balance of payments (BOP) is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period of time. The BOP can be broken down into three main components: the current account, the capital account, and the financial account. What is the primary purpose of the current account in the BOP?
A. To record all transactions that involve the exchange of goods and services between residents and non-residents.
B. To record all transactions that involve the exchange of capital between residents and non-residents.
C. To record all transactions that involve the exchange of financial assets between residents and non-residents.
D. To record all transactions that involve the exchange of goods and services between residents and non-residents, as well as the exchange of capital and financial assets.
Question 3
Consider the following diagram:
A. Supply and demand curves
B. Production possibilities frontier
C. Cost-benefit analysis
D. Opportunity \cost
Question 4
A country's inflation rate is given by the equation π = \( P_t - P_{t-1} \) / P_{t-1} * 100, where π is the inflation rate, P_t is the current price level, and P_{t-1} is the previous price level. If the current price level is ₦100 and the previous price level is ₦90, calculate the inflation rate.
A. 10%
B. 20%
C. 30%
D. 40%
Question 5
Assume that 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 0.5, find the price at which the quantity demanded is 60 units.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be used to produce other goods. This is an example of a trade-off between two goods, where the production of one good is sacrificed for the production of another. What is the opportunity \cost of producing one unit of wheat in a country where the production of wheat is limited by the availability of water?
A. The opportunity \cost is the amount of water that could have been used to produce one unit of wheat.
B. The opportunity \cost is the amount of land that could have been used to produce one unit of wheat.
C. The opportunity \cost is the amount of labor that could have been used to produce one unit of wheat.
D. The opportunity \cost is the amount of capital that could have been used to produce one unit of wheat.
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue is ₦50, what is its price?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 8
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function of C(Q) = 10Q + 100. U\sing the first-order condition for profit maximization, find the monopolist's optimal price and quantity.
A. P = 50, Q = 25
B. P = 75, Q = 50
C. P = 25, Q = 50
D. P = 50, Q = 100
Question 9
A monopolist faces a demand curve with a cons\tant elasticity of -3. If the firm's marginal revenue (MR) is given by MR = 150 - 3Q, where Q is the quantity sold, find the firm's optimal quantity and price.
A. Q = 25, P = 75
B. Q = 50, P = 50
C. Q = 75, P = 33.33
D. Q = 100, P = 25
Question 10
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, what is the balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 11
A consumer has a utility function given by U(x, y) = 2x + 3y. The consumer's budget constraint is 20x + 15y = 300. U\sing the Lagrange multiplier method, find the consumer's optimal consumption bundle.
A. (10, 20)
B. (15, 15)
C. (20, 10)
D. (25, 5)
Question 12
A firm's demand curve for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's total revenue (TR) is given by TR = P * Q, calculate the price at which the firm's marginal revenue (MR) equals its marginal \cost (MC).
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 13
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 200 - 2P. Find the profit-maximizing price and quantity u\sing the marginal revenue and marginal \cost framework.
A. \( P = 75, Q = 25 \)
B. \( P = 50, Q = 50 \)
C. \( P = 25, Q = 75 \)
D. \( P = 100, Q = 0 \)
Question 14
A firm's \cost function is given by C = 2Q^2 + 10Q + 100, where C is the total \cost and Q is the quantity produced. If the firm produces 10 units, calculate the total \cost.
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 15
A country's balance of payments can be affected by the following factors: (A) exchange rates, (B) interest rates, (C) inflation rates, (D) all of the above. Which of the following is NOT a factor that affects a country's balance of payments?
A. Exchange rates
B. Interest rates
C. Inflation rates
D. Government policies

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