POST UTME ESUT 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦500 billion, consumption is ₦150 billion, investment is ₦50 billion, government sp\ending is ₦100 billion, exports are ₦200 billion, and imports are ₦150 billion, what is the value of net exports?
A. ₦50 billion
B. ₦50 billion
C. ₦50 billion
D. ₦50 billion
Question 2
The Nigerian government has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy requires farmers to pay a tax of 10% on their total sales. If a farmer sells 100 units of a product at ₦500 each, what is the total tax liability?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 3
Consider a firm operating in a perfectly competitive market with cons\tant returns to scale. If the firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital, what is the marginal product of labor (MPL) when L = 4 and K = 9?
A. 6
B. 12
C. 18
D. 24
Question 4
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 16 and 25 respectively, what is the marginal product of labor?
A. 1.25
B. 2.5
C. 5
D. 10
Question 5
A consumer has a utility function given by U = 2x^0.5y^0.5, where x is the quantity of good X and y is the quantity of good Y. If the prices of good X and good Y are ₦5 and ₦3 respectively, and the consumer's income is ₦100, what is the optimal bundle of goods?
A. (10, 20)
B. (15, 15)
C. (20, 10)
D. (25, 5)
Question 6
A country's balance of payments account shows a trade deficit of $100 million and a current account deficit of $50 million. What is the value of the capital account surplus?
A. $-50 million
B. $0 million
C. $50 million
D. $100 million
Question 7
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects the marginal \cost (MC) curve at point E, where MR = MC, and the firm is producing 100 units, what is the opportunity \cost of producing one more unit?
A. The opportunity \cost is the difference between the price and the marginal \cost.
B. The opportunity \cost is the difference between the price and the average \cost.
C. The opportunity \cost is the difference between the marginal revenue and the marginal \cost.
D. The opportunity \cost is the difference between the average revenue and the average \cost.
Question 8
A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left, what is the effect on the equilibrium price and quantity?
A. The equilibrium price increases, and the equilibrium quantity decreases.
B. The equilibrium price decreases, and the equilibrium quantity increases.
C. The equilibrium price remains the same, and the equilibrium quantity decreases.
D. The equilibrium price increases, and the equilibrium quantity remains the same.
Question 9
The elasticity of demand for a product is calculated as the percentage change in quantity demanded in response to a 1% change in price. If the demand for a product is elastic, what can be concluded about the price elasticity of demand?
A. The price elasticity of demand is greater than 1
B. The price elasticity of demand is less than 1
C. The price elasticity of demand is equal to 1
D. The price elasticity of demand is undefined
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 surplus
B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit
Question 11
A firm in Nigeria is producing a good with a total revenue (TR) of ₦100,000 and a total \cost (TC) of ₦80,000. If the firm's profit is ₦20,000, what is the opportunity \cost of producing one more unit?
A. The opportunity \cost is the difference between the total revenue and the total \cost.
B. The opportunity \cost is the difference between the profit and the total \cost.
C. The opportunity \cost is the difference between the total revenue and the profit.
D. The opportunity \cost is the difference between the total \cost and the profit.
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. 5%
B. 10%
C. 15%
D. 20%
Question 13
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the monopolist's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 14
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 16 and 25 respectively, what is the marginal product of capital?
A. 0.0625
B. 0.125
C. 0.25
D. 0.5
Question 15
A country's GDP is $100 billion and its GNP is $120 billion. What is the value of the net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion

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