POST UTME MADONNA UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government of Nigeria has implemented a policy to increase the production of rice by 20% in the next year. If the current production level is 10 million metric tons, what is the expected increase in the value of rice production?
A. ₦20 billion
B. ₦40 billion
C. ₦60 billion
D. ₦80 billion
Question 2
A country's GDP is ₦100 billion. Its GNP is ₦120 billion. What is the net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 3
A firm's \cost function is given by C(q) = 10q + 100. What is the marginal \cost when q = 10?
A. 10
B. 20
C. 30
D. 40
Question 4
The following diagram shows the production possibilities frontier (PPF) of a country. What is the opportunity \cost of producing 100 units of good X?
A. 50 units of good Y
B. 75 units of good Y
C. 100 units of good Y
D. 125 units of good Y
Question 5
The government of Nigeria has implemented a policy to increase the production of rice by 20% in the next year. If the current production level is 10 million metric tons, what is the expected increase in the value of rice production?
A. ₦20 billion
B. ₦40 billion
C. ₦60 billion
D. ₦80 billion
Question 6
A firm's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is ₦50, what is the firm's optimal price?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 7
A government's budget is given by B = T + I, where B is budget, T is tax revenue, and I is government exp\enditure. If the government's tax revenue is ₦500,000,000 and government exp\enditure is ₦1,000,000,000, what is the budget?
A. ₦1,500,000,000
B. ₦1,500,500,000
C. ₦1,500,000,500
D. ₦1,500,000,000
Question 8
The money multiplier is the ratio of the change in the money supply to the change in the reserve requirement. If the central bank increases the reserve requirement from 10% to 15%, and the money supply is initially ₦100 billion, what is the new money supply if the money multiplier is 5?
A. ₦125 billion
B. ₦150 billion
C. ₦175 billion
D. ₦200 billion
Question 9
A government wants to finance a project by issuing bonds. If the government wants to raise ₦50 billion and the interest rate is 10%, what is the number of bonds that need to be issued?
A. 500 bonds
B. 1000 bonds
C. 2000 bonds
D. 5000 bonds
Question 10
A government imposes a tax on a firm's output. The firm's supply curve is given by Q = 100 + 2P. The tax rate is 10% of the price. Find the new supply curve.
A. Q = 90 + 2P
B. Q = 100 + 2P
C. Q = 110 + 2P
D. Q = 120 + 2P
Question 11
The elasticity of demand for a product is given by the formula \( eta = \frac{dQ}{dP} cdot \frac{P}{Q} \). If the price elasticity of demand for a product is 0.5 and the percentage change in quantity demanded is 10%, what is the percentage change in price?
A. 5%
B. 10%
C. 15%
D. 20%
Question 12
A central bank increases the money supply by 10%. What is the expected effect on the price level?
A. 10% increase
B. 5% increase
C. 5% decrease
D. 10% decrease
Question 13
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. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 14
A firm's \cost function is given by C = 100L + 200K, where C is \cost, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 10% and 20% respectively, what is the percentage change in \cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal combination of labor and capital that minimizes the \cost of production?
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 15, K = 15
D. L = 25, K = 5

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