POST UTME MOUNTAIN TOP UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments account shows a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. What is the likely cause of the trade deficit?
A. A decrease in exports
B. An increase in imports
C. A decrease in foreign investment
D. An increase in foreign aid
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20%, what is the required percentage increase in labor and capital?
A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
C. 30% increase in labor and 30% increase in capital
D. 40% increase in labor and 40% increase in capital
Question 3
A firm's average total \cost (ATC) curve is downward sloping because
A. the law of diminishing returns is not applicable
B. the firm is operating in the short run
C. the firm is experiencing economies of scale
D. the firm is producing at its optimal output level
Question 4
A consumer has a budget constraint of 100, and two goods, A and B, priced at 5 and 3 respectively. If the consumer's indifference curve is \tangent to the budget line, what is the consumer's optimal consumption bundle?
A. A = 10, B = 20
B. A = 20, B = 10
C. A = 15, B = 15
D. A = 25, B = 5
Question 5
A firm's \cost function is given by TC = 100 + 2L + 3K, where TC is total \cost, L is labor and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the new total \cost?
A. N120 + 2.4L + 3.45K
B. N120 + 2.4L + 3.45K
C. N120 + 2.4L + 3.45K
D. N120 + 2.4L + 3.45K
Question 6
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are prices, Q1 and Q2 are quantities and I is income. If the consumer's income increases by 10% and the prices of the two goods remain cons\tant, what is the new budget constraint equation?
A. P1Q1 + P2Q2 = 1.1I
B. P1Q1 + P2Q2 = 1.2I
C. P1Q1 + P2Q2 = 1.3I
D. P1Q1 + P2Q2 = 1.4I
Question 7
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal product of labor
B. marginal revenue product of labor
C. marginal \cost of production
D. marginal utility of consumption
Question 8
A firm is producing a good with a production function Q = 2K^\( 1/2 \) L^\( 1/2 \), where K is capital and L is labor. If the firm's current input levels are K = 4 and L = 9, what is the marginal product of labor?
A. 1/3
B. 1/2
C. 2/3
D. 1
Question 9
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal product of labor
B. marginal revenue product of labor
C. marginal \cost of production
D. marginal utility of consumption
Question 10
A consumer has a budget of ₦1000 and wants to buy two goods, X and Y. The price of good X is ₦200 and the price of good Y is ₦300. If the consumer sp\ends 60% of the budget on good X, how much is spent on good Y?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 11
A consumer has a budget of ₦1000 and wants to buy two goods, X and Y. The price of good X is ₦200 and the price of good Y is ₦300. If the consumer sp\ends 60% of the budget on good X, how much is spent on good Y?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 12
A country's government decides to implement a policy to reduce poverty. Which of the following is a likely consequence of the policy?
A. An increase in the Gini coefficient
B. A decrease in the poverty rate
C. An increase in income inequality
D. A decrease in the Human Development Index
Question 13
A firm's average total \cost (ATC) curve is downward sloping because
A. the law of diminishing returns is not applicable
B. the firm is operating in the short run
C. the firm is experiencing economies of scale
D. the firm is producing at its optimal output level
Question 14
The demand for a commodity 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 percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal product of labor
B. marginal revenue product of labor
C. marginal \cost of production
D. marginal utility of consumption

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