POST UTME LEAD CITY UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government budget is given by B = T + \( G - Tc \). If the government's tax revenue is 100 billion, and its government exp\enditure is 150 billion, what will be the budget deficit?
A. 50 billion
B. 60 billion
C. 70 billion
D. 80 billion
Question 2
The demand for a commodity is said to be elastic if a change in the price of the commodity leads to a
A. large increase in the quantity demanded
B. small increase in the quantity demanded
C. large decrease in the quantity demanded
D. small decrease in the quantity demanded
Question 3
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the firm's current output level?
A. 24
B. 32
C. 40
D. 48
Question 4
The balance of payments accounts for a country are given below. What is the value of the current account balance?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 5
A consumer has a budget of ₦100 and faces a price of ₦20 per unit of a product. If the consumer's indifference curves are given by U = 2x + y, where x is the quantity consumed and y is the price, calculate the optimal quantity and price.
A. x = 2, y = ₦20
B. x = 3, y = ₦30
C. x = 4, y = ₦40
D. x = 5, y = ₦50
Question 6
A firm's demand curve is given by Qd = 100 - 2P, and the supply curve is given by Qs = 2P - 50. If the price is initially set at 25, what will be the equilibrium quantity?
A. 25
B. 50
C. 75
D. 100
Question 7
A country's balance of payments account is given by: Current Account = 100, Capital Account = 50, Financial Account = 20. If the country's exchange rate is 1 USD = 100 Naira, find the value of the current account in Naira.
A. ₦10000
B. ₦20000
C. ₦30000
D. ₦40000
Question 8
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, calculate the percentage change in quantity demanded when the price increases by 10%.
A. 5%
B. 10%
C. 15%
D. 20%
Question 9
The diagram below shows the supply and demand curves for a commodity. If the price of the commodity is P1, what is the equilibrium quantity?
A. Q1
B. Q2
C. Q3
D. Q4
Question 10
A firm's \cost function is given by C(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's revenue function is R(x) = 3x^2 + 2x + 1, find the profit-maximizing level of production.
A. x = 1
B. x = 2
C. x = 3
D. x = 4
Question 11
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 100, and its marginal \cost (MC) is 80, what is the firm's optimal output level?
A. 200 units
B. 250 units
C. 300 units
D. 350 units
Question 12
The Central Bank of Nigeria (CBN) uses the following instrument to implement monetary policy:
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Discount Rate
D. Quantitative Ea\sing
Question 13
A country's exchange rate is determined by the supply and demand for foreign currency in the foreign exchange market
A. true
B. false
C. only when the exchange rate is fixed
D. only when the exchange rate is floating
Question 14
The demand for a commodity is said to be inelastic if a change in the price of the commodity leads to a
A. large increase in the quantity demanded
B. small increase in the quantity demanded
C. large decrease in the quantity demanded
D. small decrease in the quantity demanded
Question 15
A country's GDP is 100 billion, and its GNP is 120 billion. What is the value of the country's net factor income from abroad?
A. 10 billion
B. 20 billion
C. 30 billion
D. 40 billion

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