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POST UTME IGBINEDION UNIVERSITY 2017 Economics | Objective

Are you preparing for POST UTME IGBINEDION UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1

Consider a country with a fixed exchange rate regime. If the country's central bank decides to increase the money supply by 10%, what will be the effect on the balance of payments?

A. The balance of payments will improve due to increased exports.

Correct B. The balance of payments will worsen due to increased imports.

C. The balance of payments will remain unchanged.

D. The balance of payments will improve due to increased imports.

Correct Answer: B

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Question 2

A firm faces a downward-sloping demand curve for its product. If the firm increases its price by 15%, what will be the effect on its total revenue?

A. Total revenue will increase by 15%.

Correct B. Total revenue will decrease by 15%.

C. Total revenue will remain unchanged.

D. Total revenue will increase by 20%.

Correct Answer: B

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Question 3

A consumer has a budget constraint of 100 units of currency and faces a price of 2 units of currency per unit of good X. If the consumer's utility function is given by U(X) = 2X^2, what is the optimal quantity of good X that the consumer will purchase?

A. 5 units of good X.

Correct B. 10 units of good X.

C. 15 units of good X.

D. 20 units of good X.

Correct Answer: B

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Question 4

Consider a country with a fixed exchange rate regime. If the country's central bank decides to decrease the money supply by 5%, what will be the effect on the balance of payments?

Correct A. The balance of payments will improve due to increased exports.

B. The balance of payments will worsen due to increased imports.

C. The balance of payments will remain unchanged.

D. The balance of payments will improve due to increased imports.

Correct Answer: A

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Question 5

A firm faces a downward-sloping demand curve for its product. If the firm decreases its price by 10%, what will be the effect on its total revenue?

Correct A. Total revenue will increase by 10%.

B. Total revenue will decrease by 10%.

C. Total revenue will remain unchanged.

D. Total revenue will increase by 20%.

Correct Answer: A

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Question 6

A consumer's indifference curve is downward sloping, and the marginal rate of substitution (MRS) is cons\tant. What is the implication of this for the consumer's preferences?

A. The consumer is risk-averse.

Correct B. The consumer is risk-neutral.

C. The consumer is risk-loving.

D. The consumer is indifferent to risk.

Correct Answer: B

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Question 7

A country's balance of payments (BOP) is in equilibrium when the current account and capital account are balanced. What is the implication of this for the country's exchange rate?

A. The exchange rate appreciates.

B. The exchange rate depreciates.

Correct C. The exchange rate remains unchanged.

D. The exchange rate becomes volatile.

Correct Answer: C

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Question 8

A firm's production function is given by Q = 2L^0.5K^0.5. What is the firm's marginal product of labor (MPL) when L = 4 and K = 9?

A. 1.5

Correct B. 2.5

C. 3.5

D. 4.5

Correct Answer: B

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Question 9

A consumer's budget constraint is given by 2X + 3Y = 12. What is the consumer's optimal bundle of X and Y?

Correct A. (2, 2)

B. (3, 1)

C. (4, 0)

D. (0, 4)

Correct Answer: A

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Question 10

A country's GDP is given by GDP = C + I + G + $ X - M $. What is the country's GDP when C = 100, I = 50, G = 200, X = 300, and M = 150?

A. 500

Correct B. 600

C. 700

D. 800

Correct Answer: B

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Question 11

Suppose 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 supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.

A. ₦200

Correct B. ₦150

C. ₦250

D. ₦300

Correct Answer: B

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Question 12

A government imposes a tax of ₦10 on every unit of a product. If the demand for the product is given by the equation Qd = 100 - 2P and the supply is given by the equation Qs = 2P - 50, find the new equilibrium price and quantity.

A. ₦160

B. ₦180

Correct C. ₦200

D. ₦220

Correct Answer: C

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Question 13

A firm produces a product u\sing a production function of Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor and K is the capital. If the firm wants to produce 100 units of the product, find the minimum labor and capital required.

A. ₦500

B. ₦600

Correct C. ₦700

D. ₦800

Correct Answer: C

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Question 14

A firm faces a demand curve given by the equation Qd = 100 - 2P and a supply curve given by the equation Qs = 2P - 50. If the firm wants to maximize its profit, find the price and quantity at which it should produce.

A. ₦200

B. ₦250

Correct C. ₦300

D. ₦350

Correct Answer: C

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Question 15

A monopolist faces a demand curve given by the equation Qd = 100 - 2P and a supply curve given by the equation Qs = 2P - 50. If the firm wants to maximize its profit, find the price and quantity at which it should produce.

A. ₦300

B. ₦350

Correct C. ₦400

D. ₦450

Correct Answer: C

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Question 16

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 cons\tant, what is the value of the price elasticity of demand?

A. 2

Correct B. -2

C. 0.5

D. -0.5

Correct Answer: B

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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. If the firm wants to produce 4 units of good X, how much labor and capital should it use?

A. L = 4, K = 4

Correct B. L = 16, K = 1

C. L = 1, K = 16

D. L = 2, K = 2

Correct Answer: B

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Question 18

A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, 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

B. $10 billion

C. $0 billion

Correct D. -$10 billion

Correct Answer: D

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Question 19

A firm's \cost function is given by the equation C = 100 + 2Q + 0.5Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 10 units, what is the total \cost?

A. ₦1500

B. ₦2000

Correct C. ₦2500

D. ₦3000

Correct Answer: C

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Question 20

A country's GDP is given by the equation GDP = C + I + G + $ X - M $, where GDP is the gross domestic product, C is the consumption, I is the investment, G is the government sp\ending, X is the value of exports, and M is the value of imports. If the consumption is $500 billion, the investment is $200 billion, the government sp\ending is $300 billion, the value of exports is $100 billion, and the value of imports is $120 billion, what is the gross domestic product?

A. $1.5 trillion

Correct B. $1.6 trillion

C. $1.7 trillion

D. $1.8 trillion

Correct Answer: B

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Question 21

A firm operating under perfect competition faces a market demand curve that can be represented by the equation Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 50 - 2Q, what is the firm's optimal price and quantity?

Correct A. P = 40, Q = 30

B. P = 50, Q = 20

C. P = 60, Q = 10

D. P = 70, Q = 5

Correct Answer: A

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Question 22

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 country's exports are valued at ₦100 billion and imports are valued at ₦120 billion, what is the country's balance of payments?

A. ₦20 billion surplus

Correct B. ₦20 billion deficit

C. ₦40 billion surplus

D. ₦40 billion deficit

Correct Answer: B

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Question 23

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are 100 units each, what is the firm's output?

A. 200 units

Correct B. 400 units

C. 600 units

D. 800 units

Correct Answer: B

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Question 24

A country's supply curve is given by the equation Q = 50 + 2P, where Q is quantity and P is price. If the country's demand curve is given by Q = 100 - 2P, what is the equilibrium price and quantity?

A. P = 30, Q = 70

B. P = 40, Q = 60

Correct C. P = 50, Q = 50

D. P = 60, Q = 40

Correct Answer: C

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Question 25

A firm's \cost function is given by C = 100 + 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm's labor and capital are 50 units each, what is the firm's \cost?

A. ₦250

B. ₦300

Correct C. ₦350

D. ₦400

Correct Answer: C

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