POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is 100, consumption is 30, investment is 20, government sp\ending is 10, exports are 20, and imports are 10, what is the value of the country's net exports?
A. 10
B. 20
C. 30
D. 40
Question 2
A firm produces two goods, X and Y. The production function for good X is given by Qx = 2L + 3K, where L is labor and K is capital. The production function for good Y is given by Qy = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the total output of the firm?
A. 30
B. 40
C. 50
D. 60
Question 3
A central bank uses open market operations to increase the money supply. What is the effect on the interest rate?
A. The interest rate increases.
B. The interest rate decreases.
C. The interest rate remains unchanged.
D. The interest rate becomes negative.
Question 4
The concept of opportunity \cost in economics implies that the \cost of choo\sing one option is the value of the next best alternative that is given up. Which of the following statements best describes the concept of opportunity \cost?
A. The \cost of choo\sing one option is the value of the next best alternative that is given up.
B. The \cost of choo\sing one option is the value of the next worst alternative that is given up.
C. The \cost of choo\sing one option is the value of the next best alternative that is chosen.
D. The \cost of choo\sing one option is the value of the next worst alternative that is chosen.
Question 5
A country's balance of payments account shows a trade deficit of ₦500 billion. What does this mean for the country's economy?
A. The country is experiencing economic growth.
B. The country is experiencing economic decline.
C. The country is experiencing a trade surplus.
D. The country is experiencing a trade deficit.
Question 6
The balance of payments (BOP) accounts are a statistical record of a country's economic transactions with the rest of the world. Which of the following is a component of the current account in the BOP?
A. Exports of goods and services
B. Imports of goods and services
C. Net factor income from abroad
D. Net transfers
Question 7
A consumer's budget constraint is given by the equation 5X + 10Y = 100, where X and Y are the quantities of two goods. If the consumer wants to maximize utility, what is the optimal combination of X and Y?
A. X = 10, Y = 5
B. X = 5, Y = 10
C. X = 15, Y = 3
D. X = 3, Y = 15
Question 8
A firm's \cost function is given by the equation C = 3Q^2 + 5Q + 2, where C is the total \cost and Q is the quantity produced. If the firm produces 5 units, what is the total \cost?
A. 62
B. 72
C. 82
D. 92
Question 9
A country's balance of payments is in equilibrium when the current account and capital account are balanced. Which of the following statements is true about the balance of payments?
A. The balance of payments is always in equilibrium.
B. The balance of payments is never in equilibrium.
C. The balance of payments is in equilibrium when the current account is balanced.
D. The balance of payments is in equilibrium when the capital account is balanced.
Question 10
A consumer's utility function is given by the equation U = X + 2Y, where U is the utility and X and Y are the quantities of two goods. If the consumer has a budget of ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, what is the maximum utility the consumer can achieve?
A. 15
B. 25
C. 35
D. 45
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. What is the marginal product of labor?
A. \frac{L^{0.5}K^{0.5}}{L}
B. \frac{L^{0.5}K^{0.5}}{K}
C. \frac{2L^{0.5}K^{0.5}}{L}
D. \frac{2L^{0.5}K^{0.5}}{K}
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, 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 13
The concept of international trade in economics implies the exchange of goods and services between countries. Which of the following statements best describes the concept of comparative advantage?
A. A country should produce goods and services in which it has a comparative advantage.
B. A country should produce goods and services in which it has a comparative disadvantage.
C. A country should produce goods and services in which it has a absolute advantage.
D. A country should produce goods and services in which it has a absolute disadvantage.
Question 14
A consumer has a budget of ₦1000 and faces the following prices for two goods: Good X \costs ₦500 and Good Y \costs ₦300. U\sing the budget constraint, what is the maximum number of units of Good X the consumer can buy?
A. 2
B. 3
C. 4
D. 5
Question 15
The concept of comparative advantage is based on the idea that countries should specialize in producing goods for which they have a lower opportunity \cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 150 units of good Y.
C. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 150 units of good X and 100 units of good Y.
D. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.

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