POST UTME GREENFIELD UNIVERSITY 2019 Economics | Objective

Are you preparing for POST UTME GREENFIELD UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The concept of opportunity \cost is closely related to the law of increa\sing opportunity \cost. Which of the following best describes the law of increa\sing opportunity \cost?
Correct A. The law of increa\sing opportunity \cost states that as the quantity of a good increases, the opportunity \cost of producing one more unit of that good also increases.
B. The law of increa\sing opportunity \cost states that as the quantity of a good increases, the opportunity \cost of producing one more unit of that good remains cons\tant.
C. The law of increa\sing opportunity \cost states that as the quantity of a good increases, the opportunity \cost of producing one more unit of that good decreases.
D. The law of increa\sing opportunity \cost states that as the quantity of a good increases, the opportunity \cost of producing one more unit of that good becomes zero.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A central bank can implement monetary policy by buying or selling government securities on the open market. What is the effect of the central bank buying government securities on the money supply?
Correct A. The money supply increases.
B. The money supply decreases.
C. The money supply remains cons\tant.
D. The money supply becomes zero.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A government imposes a tax on a good to reduce its consumption. What is the effect of this tax on the equilibrium price and quantity of the good?
Correct 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 cons\tant, and the equilibrium quantity increases.
D. The equilibrium price remains cons\tant, and the equilibrium quantity decreases.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A country's GDP is $100 billion, and its GNP is $120 billion. What is the net factor income from abroad?
A. $20 billion
Correct B. $30 billion
C. $40 billion
D. $50 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 10% and 20%, respectively, what is the percentage change in output?
A. 10%
B. 20%
Correct C. 30%
D. 40%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A firm's revenue function is given by ( R(x) = 2x^2 + 5x + 1 ), where ( x ) is the number of units produced. If the firm's marginal revenue is ( MR(x) = 4x + 5 ), find the value of ( x ) at which the marginal revenue is maximized.
A. 1
B. 2
C. 3
Correct D. 4

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
The balance of payments (BOP) accounts for a country can be represented by the following identity: \( CA + FDI + PPI = 0 \), where ( CA ) is the current account balance, ( FDI ) is the foreign direct investment, and ( PPI ) is the private portfolio investment. If the current account balance is \( CA = -100 \) and the private portfolio investment is \( PPI = 50 \), what is the value of the foreign direct investment ( FDI )?
A. -50
B. -150
C. -200
Correct D. -250

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A government imposes a tax on a firm's output, which increases the firm's \cost of production. The firm's supply curve shifts to the left, resulting in a decrease in the quantity supplied. What is the effect of this tax on the firm's revenue?
A. Increase
Correct B. Decrease
C. No change
D. Indeterminate

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A country's economic growth is measured by its GDP growth rate. If the country's GDP grows at a rate of 5% per annum, and the population grows at a rate of 2% per annum, what is the effect on the GDP per capita?
Correct A. Increase
B. Decrease
C. No change
D. Indeterminate

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A firm's production function is given by \( Q = 2L^0.5K^0.5 \), where ( Q ) is the output, ( L ) is the labor, and ( K ) is the capital. If the firm's labor and capital are fixed at 100 and 200 respectively, what is the value of the output?
A. 20
B. 40
Correct C. 60
D. 80

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
Correct B. Total revenue will decrease
C. Total revenue will remain unchanged
D. Total revenue will increase at first, then decrease

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?
A. (100, 0)
B. (50, 50)
C. (0, 100)
Correct D. (75, 25)

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A firm's \cost function is given by ( C(q) = 2q^2 + 5q + 10 ). If the firm produces 10 units, what is its total \cost?
A. ₦150
B. ₦200
C. ₦250
Correct D. ₦300

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A government imposes a tax on a firm's output. If the firm's supply curve is given by \( Q = 2P - 10 \) and the tax rate is ₦5 per unit, what is the firm's new supply curve?
A. Q = 2P - 15
B. Q = 2P - 20
Correct C. Q = 2P - 25
D. Q = 2P - 30

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A monopolist faces a demand curve given by \( P = 100 - 2Q \). If the firm's marginal revenue function is \( MR = 100 - 4Q \), what is the firm's optimal quantity?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
The government of Nigeria has introduced policies to promote agricultural industrialization. Which of the following is a likely outcome of this policy?
A. Increased production of agricultural products
B. Reduced prices of agricultural products
C. Increased employment in the agricultural sector
Correct D. Decreased imports of agricultural products

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where Q_X is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. The production function for good Y is given by Q_Y = 3L^0.2K^0.8. If the firm uses 100 units of labor and 200 units of capital, what is the opportunity \cost of producing one more unit of good X?
A. ₦50
B. ₦75
Correct C. ₦100
D. ₦125

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A consumer has a budget of ₦1,000 and faces the following prices for two goods, A and B: P_A = ₦200 and P_B = ₦300. If the consumer's utility function is given by U = 2A^0.5B^0.5, what is the consumer's optimal consumption bundle?
A. A = 2, B = 1
B. A = 1, B = 2
Correct C. A = 2, B = 2
D. A = 1, B = 1

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A country's balance of payments accounts show the following: Exports = ₦1,500, Imports = ₦2,000, and Net Factor Income from Abroad = ₦500. What is the country's balance of payments deficit?
A. ₦500
B. ₦750
C. ₦1,000
Correct D. ₦1,250

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A firm is considering investing in a new project. The project has a \cost of ₦1,000 and is expected to generate a revenue of ₦1,200. What is the firm's expected profit from the project?
A. ₦200
B. ₦300
C. ₦400
Correct D. ₦500

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support