POST UTME KSU 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government's decision to impose a tax on luxury goods is an example of a policy aimed at reducing income inequality. Which of the following is a potential consequence of this policy?
A. Increased tax revenue for the government
B. Reduced demand for luxury goods
C. Increased income inequality
D. Decreased economic growth
Question 2
A country's economic growth rate is 5% per annum, and its population growth rate is 2% per annum. What is the country's per capita income growth rate?
A. 3%
B. 4%
C. 5%
D. 6%
Question 3
A firm is considering a new investment project with a net present value of ₦500,000. If the \cost of capital is 10%, find the internal rate of return.
A. 10%
B. 15%
C. 20%
D. 25%
Question 4
A firm is producing a product with a total revenue of ₦120,000 and a total \cost of ₦80,000. If the price elasticity of demand for the product is 0.5, find the price and quantity of the product.
A. ₦20,000
B. ₦30,000
C. ₦25,000
D. ₦35,000
Question 5
A government is considering implementing a tax on a particular good. The demand for the good is given by Q = 100 - 2P, and the supply of the good is given by Q = 2P - 10. What is the deadweight loss of the tax?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 6
A central bank is considering a monetary policy to reduce inflation. If the current inflation rate is 10% and the target inflation rate is 5%, find the required change in the money supply.
A. ₦500,000,000
B. ₦1,000,000,000
C. ₦1,500,000,000
D. ₦2,000,000,000
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the monopolist sets a price of ₦50, what is the profit-maximizing quantity of output?
A. 20
B. 30
C. 40
D. 50
Question 8
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12 and the price of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 9
A country's GDP is ₦1,000,000,000 and its GNP is ₦1,100,000,000. Find the net factor income from abroad.
A. ₦100,000,000
B. ₦200,000,000
C. ₦300,000,000
D. ₦400,000,000
Question 10
A government is considering implementing a policy to reduce inflation. The current inflation rate is 5%, and the government wants to reduce it to 2% within the next year. What is the required rate of interest?
A. 10%
B. 15%
C. 20%
D. 25%
Question 11
A firm operating in a perfectly competitive market has a total revenue function given by TR = 100x - 2x^2, where x is the quantity produced and sold. If the firm's marginal revenue (MR) is 80, what is the value of x?
A. 10
B. 20
C. 30
D. 40
Question 12
A government imposes a tax of ₦5 on a firm's output. If the firm's supply function is given by Q = 2P - 5 and the demand function is given by Q = 100 - 2P, what is the new equilibrium price and quantity?
A. (₦20, 15)
B. (₦25, 20)
C. (₦30, 25)
D. (₦35, 30)
Question 13
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue (MR) is 80, and the firm's marginal \cost (MC) is 50, what is the value of the price that maximizes profit?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 14
Suppose a firm faces a demand curve given by Q = 100 - 2P, and its supply curve is given by Q = 2P. What is the equilibrium price and quantity?
A. \( P = 20, Q = 60 \)
B. \( P = 30, Q = 50 \)
C. \( P = 40, Q = 40 \)
D. \( P = 50, Q = 30 \)
Question 15
A country's balance of payments (BOP) is given by 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 its imports are valued at ₦120 billion, what is the value of the BOP?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

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