POST UTME IGBINEDION UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The balance of payments (BOP) accounts for a country can be represented by the following equation: BOP = CA + FA + IA. If the current account (CA) is in surplus by ₦100 billion, the financial account (FA) is in deficit by ₦50 billion, and the income account (IA) is in surplus by ₦20 billion, what is the overall balance of payments?
Question 2
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's current consumption is ₦1,200 billion, investment is ₦300 billion, government sp\ending is ₦500 billion, exports are ₦800 billion, and imports are ₦400 billion, calculate the country's current government sp\ending as a percentage of GDP.
Question 3
The government of Nigeria has introduced a new tax policy to increase revenue. Which of the following taxes is likely to have the highest elasticity of tax base?
Question 4
A market is in equilibrium with a price of ₦50 and a quantity of 100 units. If the demand curve is given by Qd = 200 - 2P and the supply curve is given by Qs = 2P - 100, what is the price elasticity of demand?
Question 5
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's current consumption is ₦1,200 billion, investment is ₦300 billion, government sp\ending is ₦500 billion, exports are ₦800 billion, and imports are ₦400 billion, calculate the country's current GDP.
Question 6
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) curve is given by MR = 100 - 2Q, where Q is the quantity sold, what is the firm's optimal quantity?
Question 7
The Nigerian government has implemented a policy to increase agricultural production. Which of the following policies is likely to have the highest impact on agricultural production?
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5, where L and K are the quantities of labor and capital respectively. If the firm's \cost function is given by C = 100L + 200K, what is the firm's optimal input bundle?
Question 9
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5, where Q is the quantity of the good produced, L is the amount of labor used, and K is the amount of capital used. If the firm's budget constraint is given by 2L + 3K = ₦10,000,000, what is the firm's optimal input combination?
Question 10
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. However, this calculation excludes the value of intermediate goods and services. What is the term for this exclusion?
Question 11
A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, the GDP of a country can be affected by the following factors: (i) Importation of goods and services, (ii) Exportation of goods and services, (iii) Transfer payments, and (iv) Depreciation of capital assets. Which of the following is NOT a factor that affects a country's GDP?
Question 12
A firm is considering whether to invest in a new project that has a net present value (NPV) of ₦1,500,000. If the firm's \cost of capital is 12% per annum, what is the internal rate of return (IRR) of the project?
Question 13
A monopolistically competitive firm faces a downward-sloping demand curve. What is the term for the price at which a firm is willing and able to produce a given quantity of a good?
Question 14
A market is in equilibrium with a price of ₦75 and a quantity of 150 units. If the demand curve is given by Qd = 300 - 3P and the supply curve is given by Qs = 3P - 150, what is the price elasticity of demand?
Question 15
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 10 units of output, what is the total \cost of production?
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