POST UTME ESUT 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by the following equation: GDP = C + I + G + \( X - M \). If the country's consumption increases by 10%, investment decreases by 5%, government sp\ending increases by 15%, exports increase by 10%, and imports decrease by 5%, what is the percentage change in GDP?
A. 5%
B. 10%
C. 15%
D. 20%
Question 2
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 3
The demand for a product is given by the equation P = 100 - 2Q, where P is the price and Q is the quantity demanded. The supply of the product is given by the equation P = 50 + Q. What is the equilibrium quantity?
A. 25
B. 50
C. 75
D. 100
Question 4
A firm's demand curve is downward sloping, and its supply curve is upward sloping. If the firm is operating in a perfectly competitive market, what is the most likely outcome?
A. The firm will produce at the point where MR = MC.
B. The firm will produce at the point where P = MC.
C. The firm will produce at the point where MR > MC.
D. The firm will produce at the point where MR < MC.
Question 5
A firm's revenue function is given by R = 2L + 3K. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in total revenue?
A. 5%
B. 10%
C. 15%
D. 20%
Question 6
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue function given by MR = 2P. If the firm's marginal \cost is cons\tant at 10, what is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 60, Q = 20
D. P = 20, Q = 60
Question 7
A firm's revenue is the total amount of money it receives from the sale of its products or services. It is calculated as the product of the price per unit and the number of units sold. The revenue function is given by
A. R = P x Q
B. R = P + Q
C. R = P - Q
D. R = P / Q
Question 8
A consumer's budget constraint is given by the equation \( 2x + 3y = 12 \). If the consumer's indifference curve is represented by the equation ( u(x,y) = 2x^2 + 3y^2 ), find the optimal bundle of x and y.
A. (x,y) = (3,3)
B. (x,y) = (4,2)
C. (x,y) = (5,1)
D. (x,y) = (6,0)
Question 9
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are 2 and 3 respectively, and the consumer's income is 100, what is the consumer's optimal bundle?
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 10, y = 40
Question 10
A country's balance of payments is given by the following equation: BOP = X - M + \( F - I \). If the country's exports increase by 10%, imports decrease by 5%, foreign investment increases by 15%, and domestic investment decreases by 10%, what is the percentage change in the balance of payments?
A. -5%
B. 0%
C. 5%
D. 10%
Question 11
A firm's \cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in total \cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 12
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x^2 + 3y^2 ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y.
A. (x,y) = (20,10)
B. (x,y) = (15,15)
C. (x,y) = (10,20)
D. (x,y) = (5,30)
Question 13
The government of Nigeria has implemented a policy to increase the production of rice in the country. Assuming that the production function for rice is given by Q = 100L^0.5K^0.5, where Q is the quantity of rice produced, L is the labor input, and K is the capital input, what is the value of the marginal product of labor?
A. 20L^0.5K^0.5
B. 10L^0.5K^0.5
C. 5L^0.5K^0.5
D. 2L^0.5K^0.5
Question 14
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the price of labor is ₦10 and the price of capital is ₦20, and the firm's total revenue is ₦1000, what is the optimal level of labor and capital?
A. L = 5, K = 2
B. L = 3, K = 4
C. L = 2, K = 5
D. L = 4, K = 3
Question 15
A firm faces a demand curve given by Qd = 100 - 2P and a marginal revenue function given by MR = 2P. If the firm's marginal \cost is cons\tant at 10, what is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 60, Q = 20
D. P = 20, Q = 60

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