POST UTME IGBINEDION UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government is considering a policy to promote industrialization in a developing country. Which of the following policies would be most effective in promoting industrialization?
A. Protectionist trade policies
B. Investment in human capital
C. Investment in infrastructure
D. Investment in research and development
Question 2
A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. What is the country's net national income?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 3
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains cons\tant, by what percentage does output increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A firm is considering investing in a new project with an initial investment of ₦1,000,000 and expected annual returns of ₦200,000 for 5 years. If the firm's \cost of capital is 10%, what is the net present value (NPV) of the project?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 5
A country has a trade deficit of ₦100 billion and a GDP of ₦500 billion. What is the trade deficit as a percentage of GDP?
A. 10%
B. 15%
C. 20%
D. 25%
Question 6
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its average variable \cost (AVC) curve at a point where the firm is producing 100 units, what is the opportunity \cost of producing one more unit?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 7
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 \cost function is C(x) = 3x^2 + 2x + 10, find the profit-maximizing level of production.
A. \( x = 1 \)
B. \( x = 2 \)
C. \( x = 3 \)
D. \( x = 4 \)
Question 8
A government imposes a tax on a particular good. What is the likely effect on the equilibrium price and quantity of the good?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases
Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's revenue function is given by R = PQ, what is the firm's marginal revenue function?
A. \( MR = -2P \)
B. \( MR = 2P \)
C. \( MR = P^2 \)
D. \( MR = -P^2 \)
Question 10
A country's balance of payments is given by BOP = X - M, where BOP is the balance of payments, X is exports, and M is imports. If exports increase by 20% and imports remain cons\tant, by what percentage does the balance of payments increase?
A. 10%
B. 15%
C. 20%
D. 25%
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the total product of labor (TPL) at these input levels?
A. 32
B. 64
C. 128
D. 256
Question 12
Consider a pure public good with a demand curve given by Q = 100 - P, where Q is the quantity demanded and P is the price. If the government decides to provide this public good at a price of ₦100, what will be the quantity demanded?
A. 50
B. 75
C. 100
D. 125
Question 13
A firm is operating in a perfectly competitive market. If the firm's average \cost (AC) curve intersects the demand curve at a point where the quantity supplied is 100 units, what is the implication for the firm's profit-maximizing output?
A. The firm will produce 100 units of output.
B. The firm will produce less than 100 units of output.
C. The firm will produce more than 100 units of output.
D. The firm will produce at the point where MC = MR.
Question 14
A consumer's budget constraint is given by 2x + 3y = 12, where x is the number of units of good X and y is the number of units of good Y. If the consumer's utility function is U(x,y) = 2x + 3y, find the optimal values of x and y.
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 4, y = 0
D. x = 0, y = 4
Question 15
A firm's \cost function is given by C(x) = 100 + 2x^2, where x is the number of units produced. If the firm's revenue function is R(x) = 100x - 2x^2, find the break-even point.
A. x = 10
B. x = 20
C. x = 30
D. x = 40

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