POST UTME GREENFIELD UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A perfectly competitive market has a supply curve given by Q = 2P + 5. If the market demand curve is given by Q = 100 - 2P, what is the equilibrium price and quantity in the market?
A. P = 10, Q = 45
B. P = 15, Q = 35
C. P = 20, Q = 25
D. P = 25, Q = 15
Question 2
A consumer's indifference curve is a graphical representation of the consumer's preferences. Which of the following is a characteristic of an indifference curve?
A. It is downward sloping
B. It is upward sloping
C. It is horizontal
D. It is vertical
Question 3
A consumer's utility function is given by U = 2x^2 + 3y^2. If the consumer's income is ₦1,000, and the prices of x and y are ₦50 and ₦75 respectively, what is the consumer's optimal bundle of x and y?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 4
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm's revenue function is given by R(q) = 3q^2 + 2q - 5, what is the firm's profit function?
A. P(q) = q^2 - 5q + 15
B. P(q) = 2q^2 + q - 15
C. P(q) = q^2 + 5q - 15
D. P(q) = 3q^2 - 5q + 15
Question 5
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 price at which the quantity demanded is 60?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
Agricultural development in Nigeria has been hindered by several factors. Which of the following is a major factor?
A. Lack of irrigation facilities
B. Lack of fertilizers
C. Lack of mechanization
D. All of the above
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the point where labor and capital inputs are equal?
A. 1
B. 2
C. 3
D. 4
Question 8
A firm's revenue function is given by R = 100Q - 2Q^2. If the firm produces 20 units, what is the marginal revenue?
A. 80
B. 90
C. 100
D. 110
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum \cost of production?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 10
Determine the price elasticity of demand for a product whose price increases from ₦100 to ₦120, and the quantity demanded decreases from 100 units to 80 units.
A. 0.5
B. 1.25
C. -0.5
D. -1.25
Question 11
The government of Nigeria has introduced a new policy aimed at increa\sing the production of rice. The policy includes a subsidy of ₦500 per bag of rice. If the price of rice is ₦5000 per bag, what is the new price after the subsidy?
A. ₦4500
B. ₦45000
C. ₦50000
D. ₦500000
Question 12
The money supply in an economy is determined by the central bank. Which of the following is a tool used by the central bank to control the money supply?
A. Open market operations
B. Reserve requirements
C. Discount rate
D. All of the above
Question 13
A country's balance of payments account can be in equilibrium even if its current account is not in equilibrium. Which of the following is a reason for this?
A. Capital account transactions
B. Foreign exchange reserves
C. Trade deficit
D. Trade surplus
Question 14
A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, if a foreign company produces goods within the country, but the profits are repatriated to its home country, how would this affect the country's GDP?
A. The country's GDP would increase.
B. The country's GDP would decrease.
C. The country's GDP would remain unchanged.
D. The country's GDP would be affected by the repatriated profits.
Question 15
A country's GDP is ₦1 trillion, its imports are ₦200 billion, and its exports are ₦300 billion. What is the country's balance of trade?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion

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