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POST UTME ESUT 2021 Economics | Objective

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Question 1

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

Correct B. ₦50,000

C. ₦75,000

D. ₦100,000

Correct Answer: B

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Question 2

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the monopolist's profit-maximizing price?

A. ₦20

B. ₦30

Correct C. ₦40

D. ₦50

Correct Answer: C

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Question 3

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

Correct B. ₦500 billion

C. ₦1 trillion

D. ₦5 trillion

Correct Answer: B

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Question 4

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

Correct B. Project B

C. Both projects are equally attractive

D. Neither project is attractive

Correct Answer: B

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Question 5

A country's national income is calculated as the sum of all wages, rents, and profits earned by its citizens. If the country's GDP is ₦10 trillion and the depreciation is ₦500 billion, what is the country's national income?

A. ₦9.5 trillion

B. ₦10 trillion

Correct C. ₦10.5 trillion

D. ₦11 trillion

Correct Answer: C

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Question 6

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%

Correct C. 40%

D. 50%

Correct Answer: C

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Question 7

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

Correct C. 40

D. 50

Correct Answer: C

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Question 8

A country's balance of payments is given by the following equation: BOP = X - M - $ I - S $. If the country's exports are $100 billion, imports are $80 billion, and the current account deficit is $20 billion, what is the value of the capital account?

A. $20 billion

B. $30 billion

Correct C. $40 billion

D. $50 billion

Correct Answer: C

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Question 9

A firm's production function is given by Q = 2K^$ 1/2 $L^$ 1/2 $. If the firm increases its labor from 400 to 900, and capital remains cons\tant at 400, what is the percentage increase in output?

A. 20%

B. 30%

Correct C. 40%

D. 50%

Correct Answer: C

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Question 10

A country's budget is given by the following equation: Budget = Taxation + Borrowing - Exp\enditure. If the country's taxation is $100 billion, borrowing is $80 billion, and exp\enditure is $120 billion, what is the budget deficit?

A. $20 billion

B. $30 billion

Correct C. $40 billion

D. $50 billion

Correct Answer: C

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Question 11

The opportunity \cost of producing one more unit of a good is measured by the

Correct A. marginal \cost

B. marginal revenue

C. average \cost

D. average revenue

Correct Answer: A

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Question 12

A country's balance of payments is in equilibrium when the current account and capital account are equal. True or False?

Correct A. True

B. False

C. Dep\ends on the country's economic conditions

D. Not enough information to determine

Correct Answer: A

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Question 13

The money multiplier is the ratio of the change in the money supply to the change in the reserve requirement. True or False?

Correct A. True

B. False

C. Dep\ends on the central bank's actions

D. Not enough information to determine

Correct Answer: A

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Question 14

A government's budget is said to be in surplus when its revenue exceeds its exp\enditure. True or False?

Correct A. True

B. False

C. Dep\ends on the government's economic conditions

D. Not enough information to determine

Correct Answer: A

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Question 15

The opportunity \cost of producing one more unit of a good is measured by the

Correct A. marginal \cost

B. marginal revenue

C. average \cost

D. average revenue

Correct Answer: A

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Question 16

A country's balance of payments is in equilibrium when the current account and capital account are equal. True or False?

Correct A. True

B. False

C. Dep\ends on the country's economic conditions

D. Not enough information to determine

Correct Answer: A

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Question 17

The money multiplier is the ratio of the change in the money supply to the change in the reserve requirement. True or False?

Correct A. True

B. False

C. Dep\ends on the central bank's actions

D. Not enough information to determine

Correct Answer: A

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Question 18

A government's budget is said to be in surplus when its revenue exceeds its exp\enditure. True or False?

Correct A. True

B. False

C. Dep\ends on the government's economic conditions

D. Not enough information to determine

Correct Answer: A

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Question 19

The opportunity \cost of producing one more unit of a good is measured by the

Correct A. marginal \cost

B. marginal revenue

C. average \cost

D. average revenue

Correct Answer: A

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Question 20

A country's balance of payments is in equilibrium when the current account and capital account are equal. True or False?

Correct A. True

B. False

C. Dep\ends on the country's economic conditions

D. Not enough information to determine

Correct Answer: A

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Question 21

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

Correct Answer: VIEW ANSWER

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Question 22

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%?

Correct A. -20%

B. -10%

C. 0%

D. 10%

Correct Answer: A

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Question 23

A firm's total revenue (TR) is given by the equation TR = 1000 + 20Q - 0.1Q^2, where Q is the quantity sold. If the firm sells 200 units, what is the marginal revenue?

Correct A. ₦1800

B. ₦2000

C. ₦2200

D. ₦2400

Correct Answer: A

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Question 24

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%

Correct B. 15%

C. 20%

D. 25%

Correct Answer: B

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Question 25

A country's balance of payments (BOP) 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 ₦1000 and the value of imports is ₦800, what is the balance of payments?

Correct A. ₦200

B. ₦300

C. ₦400

D. ₦500

Correct Answer: A

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