POST UTME ESUT 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The money multiplier is the ratio of the change in the money supply to the change in the reserve requirement. True or False?
A. True
B. False
C. Dep\ends on the central bank's actions
D. Not enough information to determine
Question 2
The agricultural sector in Nigeria is characterized by low productivity and limited mechanization. Which of the following policies would be most effective in addres\sing these issues?
A. Increa\sing government subsidies for fertilizers and pesticides.
B. Implementing a policy of crop rotation and intercropping.
C. Investing in irrigation infrastructure.
D. Promoting the use of genetically modified crops.
Question 3
A country's balance of payments is in equilibrium when the current account and capital account are equal. True or False?
A. True
B. False
C. Dep\ends on the country's economic conditions
D. Not enough information to determine
Question 4
A central bank uses the money multiplier to increase the money supply. If the reserve requirement is 10% and the money multiplier is 10, what is the new money supply?
A. ₦100 billion
B. ₦500 billion
C. ₦1 trillion
D. ₦5 trillion
Question 5
The production function for a firm is given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital, and L is labor. If the firm increases its capital from 400 to 900, and labor remains cons\tant at 400, what is the percentage increase in output?
A. 20%
B. 30%
C. 40%
D. 50%
Question 6
Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average person consumes ₦50,000 worth of goods and services per year, what is the country's GDP per capita?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 7
A firm is operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal \cost (MC) is cons\tant and the market price (P) is above the average total \cost (ATC), what will be the firm's profit-maximizing quantity of output?
A. Q = MC
B. Q = P - ATC
C. Q = MC - ATC
D. Q = P - MC
Question 8
A country's balance of payments is in equilibrium when the current account and capital account are equal. True or False?
A. True
B. False
C. Dep\ends on the country's economic conditions
D. Not enough information to determine
Question 9
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost is MC = 10 + 2Q. What is the profit-maximizing quantity of output?
A. 20
B. 30
C. 40
D. 50
Question 10
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the relationship between the marginal revenue (MR) and the price (P) of the product?
A. MR = P
B. MR > P
C. MR < P
D. MR = 0
Question 11
A government's budget is said to be in surplus when its revenue exceeds its exp\enditure. True or False?
A. True
B. False
C. Dep\ends on the government's economic conditions
D. Not enough information to determine
Question 12
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 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. -20%
B. -10%
C. 0%
D. 10%
Question 13
A firm is considering two investment projects. Project A has a 10% chance of success and a 90% chance of failure, with a payoff of ₦100 million if successful. Project B has a 20% chance of success and a 80% chance of failure, with a payoff of ₦200 million if successful. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 14
The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied when the price increases by 5%?
A. 10%
B. 15%
C. 20%
D. 25%
Question 15
The elasticity of demand for a product is 0.5. If the price of the product increases by 10%, what is the percentage change in the quantity demanded?
A. 5%
B. 10%
C. 15%
D. 20%

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