POST UTME LASU 2018 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 billion, consumption is 60 billion, investment is 10 billion, government sp\ending is 20 billion, exports are 15 billion, and imports are 5 billion, what is the value of the country's net exports?
A. 5
B. 10
C. 15
D. 20
Question 2
A firm is producing a good with a production function given by Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm's marginal product of labor (MPL) is given by MPL = L^\( -0.5 \)K^0.5, what is the value of the MPL when L = 4 and K = 9?
A. 1
B. 2
C. 3
D. 4
Question 3
A firm is producing a good with a total revenue of ₦2,000 and a total \cost of ₦1,800. The price elasticity of demand for the good is 1.5. What is the price elasticity of supply?
A. 0.67
B. 1.33
C. 2
D. 3
Question 4
A country's money supply (M) is given by the equation M = 1000 + 0.5Y, where Y is the country's real GDP. If the country's real GDP is 100 billion, what is the value of the country's money supply?
A. 50
B. 100
C. 150
D. 200
Question 5
The Nigerian government has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers and increa\sing the importation of rice seeds. What is the likely effect of this policy on the demand for rice in Nigeria?
A. Increase in demand
B. Decrease in demand
C. No change in demand
D. Increase in supply
Question 6
A country's GDP is $100 billion, and its GNP is $120 billion. What is the country's net factor income from abroad?
A. \( \text{GDP} - \text{GNP} = \text{Net factor income from abroad} \)
B. \( \text{GNP} - \text{GDP} = \text{Net factor income from abroad} \)
C. \( \text{GDP} + \text{GNP} = \text{Net factor income from abroad} \)
D. \( \text{GDP} - \text{GNP} = \text{Net factor income to abroad} \)
Question 7
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = ₦100, and if the price of good x is ₦20 per unit and the price of good y is ₦30 per unit, what is the optimal level of good x (x) that the consumer should purchase?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 8
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, and if the firm's budget constraint is 50L + 100K = ₦10,000, what is the optimal level of labor (L) that the firm should employ?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 9
A monopolist is producing a good with a marginal revenue of ₦100 and a marginal \cost of ₦80. What is the profit-maximizing quantity of the good?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 10
Consider a firm operating in a perfectly competitive market with cons\tant returns to scale. If the firm's average \cost curve intersects the marginal \cost curve at point A, and the price of the good is P, what is the firm's optimal output level?
A. \( Q^* = \frac{P}{MC} \)
B. \( Q^* = \frac{P}{AC} \)
C. \( Q^* = \frac{MC}{P} \)
D. \( Q^* = \frac{AC}{P} \)
Question 11
A consumer's utility function is given by U = 2X + 3Y, where X is the quantity of good X and Y is the quantity of good Y. If the consumer's income is ₦10,000 and the prices of good X and good Y are ₦2 and ₦3 respectively, what is the optimal bundle of goods?
A. \( X = 2, Y = 3 \)
B. \( X = 3, Y = 2 \)
C. \( X = 4, Y = 1 \)
D. \( X = 1, Y = 4 \)
Question 12
U\sing the concept of opportunity \cost, explain why a country may choose to import a good even if it can be produced domestically.
A. The opportunity \cost of producing the good domestically is too high.
B. The good is not produced domestically due to lack of resources.
C. The country wants to specialize in producing other goods.
D. The good is not produced domestically due to lack of techno\logy.
Question 13
A country's national income is given by N = W + I + \( G - T \), where N is the national income, W is the wage income, I is the investment, G is the government exp\enditure and T is the tax revenue. If the wage income is ₦50 billion, the investment is ₦20 billion, the government exp\enditure is ₦30 billion and the tax revenue is ₦10 billion, what is the national income?
A. 80
B. 90
C. 100
D. 110
Question 14
A firm's \cost function is given by C = 2L + 3K. If the firm's revenue function is given by R = 4L + 5K, and if the firm's profit function is given by π = R - C, what is the optimal level of labor (L) that the firm should employ?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 15
A firm's total revenue is given by the equation R(x) = 2x^2 + 5x + 1, where x is the number of units sold. If the firm's marginal revenue is 10 when x = 3, what is the value of the firm's total revenue when x = 4?
A. 41
B. 43
C. 45
D. 47

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