POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption function is C = 500 + 0.8Y, the investment function is I = 200 + 0.2Y, the government exp\enditure function is G = 1000, the export function is X = 5000, and the import function is M = 2000, what is the country's GDP?
A. ₦10,000
B. ₦12,000
C. ₦15,000
D. ₦18,000
Question 2
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is the quantity of output, L is the quantity of labor, and K is the quantity of capital. If the firm is currently u\sing 16 units of labor and 25 units of capital, what is the marginal product of labor?
A. 1/4
B. 1/2
C. 3/4
D. 1
Question 3
A country's inflation rate is 5% per annum. What is the effect on the purcha\sing power of a consumer?
A. The purcha\sing power increases
B. The purcha\sing power decreases
C. The purcha\sing power remains unchanged
D. The purcha\sing power fluctuates
Question 4
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape on the consumer's marginal rate of substitution (MRS)?
A. The MRS is cons\tant
B. The MRS is increa\sing
C. The MRS is decrea\sing
D. The MRS is zero
Question 5
The following table shows the budgetary allocations for a country. What is the effect of an increase in the budget for education on the overall budget deficit?
A. Increase
B. Decrease
C. No change
D. Indeterminate
Question 6
The government of a country decides to implement a policy to reduce the price of a commodity by 20%. If the initial price is ₦100, what is the new price of the commodity?
A. ₦80
B. ₦90
C. ₦120
D. ₦140
Question 7
A government imposes a tax on a commodity to reduce its consumption. If the demand for the commodity is inelastic, what will be the effect on the government's revenue?
A. The government's revenue will increase.
B. The government's revenue will decrease.
C. The government's revenue will remain the same.
D. The effect on the government's revenue is uncertain.
Question 8
A firm produces two goods, X and Y. The production of X requires 2 units of labor and 1 unit of capital, while the production of Y requires 1 unit of labor and 2 units of capital. If the firm has 10 units of labor and 15 units of capital, what is the opportunity \cost of producing 5 units of good X?
A. 5 units of good Y
B. 10 units of good Y
C. 15 units of good Y
D. 20 units of good Y
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units, and the number of workers (L) is 4, what is the value of the capital stock (K)?
A. 4
B. 6
C. 8
D. 10
Question 10
A country's balance of payments is in surplus. What is the likely effect on its exchange rate?
A. The exchange rate will appreciate
B. The exchange rate will depreciate
C. The exchange rate will remain unchanged
D. The exchange rate will fluctuate
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units, and the number of workers (L) is 4, what is the value of the capital stock (K)?
A. 4
B. 6
C. 8
D. 10
Question 12
The demand function for a product is given by Q = 100 - 2P. If the price elasticity of demand is measured at a point where the quantity demanded is 50 units, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 13
The demand function for a product is given by Q = 100 - 2P. If the price elasticity of demand is measured at a point where the quantity demanded is 50 units, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 14
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 is currently $10, what is the quantity demanded?
A. 40
B. 50
C. 60
D. 70
Question 15
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 percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%

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