POST UTME LEAD CITY UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's national income accounting system uses the following formula to calculate its GDP: GDP = C + I + G + \( X - M \). If the country's consumption exp\enditure is ₦500,000, its investment exp\enditure is ₦200,000, its government exp\enditure is ₦300,000, its exports are ₦400,000, and its imports are ₦200,000, what is the country's GDP?
A. ₦1,400,000
B. ₦1,500,000
C. ₦1,600,000
D. ₦1,700,000
Question 2
The following table shows the national income accounts for a country. What is the value of the country's GDP?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 3
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦300 billion, calculate the country's GDP.
A. ₦1.5 trillion
B. ₦1.6 trillion
C. ₦1.7 trillion
D. ₦1.8 trillion
Question 4
The Central Bank of Nigeria (CBN) uses monetary policy tools to control inflation. Which of the following is NOT a monetary policy tool?
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Fiscal Policy
D. Capital Controls
Question 5
The concept of scarcity in economics implies that the production of one good or service is limited by the availability of resources, which can be used to produce other goods or services. This leads to a trade-off between different goods or services. Which of the following is a correct example of a trade-off?
A. A farmer must choose between growing wheat or corn due to limited land.
B. A consumer must choose between buying a new car or a new house due to limited budget.
C. A company must choose between investing in research and development or expanding its marketing efforts due to limited resources.
D. A government must choose between increa\sing military sp\ending or investing in education due to limited budget.
Question 6
A consumer has the following indifference curves: IC1: U = 2X + 3Y, IC2: U = 3X + 2Y. Find the point of \tangency.
A. X = 2, Y = 3
B. X = 3, Y = 2
C. X = 4, Y = 5
D. X = 5, Y = 4
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P. If the marginal \cost is cons\tant at ₦10, what is the optimal price and quantity?
A. ₦50, 50 units
B. ₦60, 40 units
C. ₦70, 30 units
D. ₦80, 20 units
Question 8
A country's GDP is calculated as the sum of all final goods and services produced within its borders. If a firm imports raw materials worth ₦100,000 and produces a final good worth ₦200,000, what is the contribution of this firm to the country's GDP?
A. ₦0
B. ₦100,000
C. ₦200,000
D. ₦300,000
Question 9
The following table shows the production function for a firm: | L | K | X | | --- | --- | --- | | 0 | 0 | 0 | | 1 | 0 | 1 | | 0 | 1 | 1 | | 2 | 1 | 3 | Find the marginal product of Labour.
A. 1
B. 2
C. 3
D. 4
Question 10
A firm has a total revenue function given by TR = 100Q - Q^2. If the fixed \cost is ₦500, what is the profit-maximizing quantity?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 11
In a perfectly competitive market, if the demand for a commodity increases, what will happen to the equilibrium price and quantity?
A. Equilibrium price will decrease and quantity will increase
B. Equilibrium price will increase and quantity will decrease
C. Equilibrium price will remain the same and quantity will increase
D. Equilibrium price will decrease and quantity will decrease
Question 12
The following table shows the production \costs for a firm producing two goods, X and Y. What is the total fixed \cost of producing 100 units of good X?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 13
A consumer has a budget constraint of 100 and a preference for two goods, A and B. The prices of A and B are 10 and 20 respectively. U\sing the indifference curve approach, what is the consumer's optimal bundle?
A. A = 5, B = 5
B. A = 10, B = 0
C. A = 0, B = 5
D. A = 5, B = 10
Question 14
The government of Nigeria has introduced a new policy to promote agricultural development in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers by 20% to reduce the subsidy burden. Assuming the demand for fertilizers is inelastic, what will be the effect of the price increase on the quantity of fertilizers demanded?
A. The quantity of fertilizers demanded will decrease by 10%
B. The quantity of fertilizers demanded will increase by 10%
C. The quantity of fertilizers demanded will remain the same
D. The quantity of fertilizers demanded will decrease by 20%
Question 15
Consider a pure monopoly market with a downward-sloping demand curve. If the monopolist increases the price of the product, what happens to the quantity demanded?
A. Quantity demanded increases
B. Quantity demanded decreases
C. Quantity demanded remains unchanged
D. Quantity demanded becomes infinite

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