POST UTME LAUTECH 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government's budget is said to be balanced if its total revenue equals its total exp\enditure. What is the formula for calculating a government's budget balance?
A. Budget Balance = Total Revenue - Total Exp\enditure
B. Budget Balance = Total Exp\enditure - Total Revenue
C. Budget Balance = Total Revenue + Total Exp\enditure
D. Budget Balance = Total Exp\enditure + Total Revenue
Question 2
A country's GDP is calculated as the sum of all final goods and services produced within its borders. What is the formula for calculating a country's GDP?
A. GDP = C + I + G + \( X - M \)
B. GDP = C + I + G + X
C. GDP = C + I + G - M
D. GDP = C + I + G + M
Question 3
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 $50 billion, investment is $20 billion, government sp\ending is $30 billion, exports are $40 billion, and imports are $20 billion, what is the country's trade balance?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 4
The government of Nigeria has implemented a policy to increase the production of agricultural products through the use of subsidies. What is the likely effect of this policy on the agricultural sector?
A. Increase in agricultural production
B. Decrease in agricultural production
C. No effect on agricultural production
D. Increase in agricultural prices
Question 5
Determine the marginal utility of income for a consumer who derives utility from consuming two goods, A and B, with the following indifference curves: U(A) = 2A + 3B and U(B) = 4A + 5B. If the consumer's income is ₦1000 and the prices of A and B are ₦20 and ₦30 respectively.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 6
A consumer's budget constraint is given by 2X + 3Y = 24. The consumer's indifference curve is given by U = X^0.5Y^0.5. What is the consumer's optimal bundle?
A. (4, 4)
B. (6, 2)
C. (8, 0)
D. (0, 8)
Question 7
A country's GDP is ₦500 billion and its GNP is ₦550 billion. What is the value of its net factor income from abroad?
A. ₦25 billion
B. ₦50 billion
C. ₦75 billion
D. ₦100 billion
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the profit-maximizing price?
A. ₦50
B. ₦40
C. ₦30
D. ₦20
Question 9
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is 100 and the value of imports is 80, what is the balance of payments?
A. 20
B. 30
C. 40
D. 50
Question 10
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 price elasticity of supply?
A. 0.5
B. 1
C. 2
D. 3
Question 11
A monopolistically competitive firm faces a demand curve that is downward sloping. If the firm increases its price, what will happen to its quantity demanded?
A. Increase in quantity demanded
B. Decrease in quantity demanded
C. No change in quantity demanded
D. Increase in price and quantity demanded
Question 12
A country's balance of payments is in equilibrium when its current account is equal to its capital account. If the country's current account is in deficit by ₦100 billion and its capital account is in surplus by ₦150 billion, what is the value of its net foreign exchange earnings?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 13
A firm's demand for labor is given by L = 100 - 2P_L, where L is labor and P_L is the wage rate. If the wage rate is ₦20, what is the value of its marginal labor demand?
A. -1
B. -2
C. -4
D. -8
Question 14
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is the consumption, I is the investment, G is the government sp\ending, X is the value of exports and M is the value of imports. If the consumption is 100, the investment is 50, the government sp\ending is 20, the value of exports is 100 and the value of imports is 80, what is the GDP?
A. 250
B. 300
C. 350
D. 400
Question 15
A consumer's indifference curve is given by U = 2X + 3Y, where U is utility, X and Y are quantities consumed. If the consumer's income is ₦1000, the price of good X is ₦5, and the price of good Y is ₦10, what is the consumer's optimal bundle?
A. X = 50, Y = 100
B. X = 100, Y = 50
C. X = 150, Y = 0
D. X = 0, Y = 150

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