POST UTME MOUNTAIN TOP UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP deflator is given by the formula GDP deflator = \( GDP at current prices / GDP at cons\tant prices \) x 100. If the GDP at current prices is 1000 and the GDP at cons\tant prices is 800, what is the GDP deflator?
A. 125
B. 125.00
C. 125.00%
D. 125.00%
Question 2
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
A. 1
B. 2
C. 3
D. 4
Question 3
A consumer's budget constraint is given by P1Q1 + P2Q2 = 100. If the price of good 1 (P1) increases from ₦10 to ₦15, and the price of good 2 (P2) remains cons\tant at ₦5, what is the new budget constraint?
A. P1Q1 + P2Q2 = 120
B. P1Q1 + P2Q2 = 150
C. P1Q1 + P2Q2 = 180
D. P1Q1 + P2Q2 = 200
Question 4
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 5
The National Bureau of Statistics (NBS) reported that Nigeria's GDP grew by 2.27% in the first quarter of 2020. However, the growth rate was lower than the 3.02% recorded in the same quarter of 2019. What could be the possible reason for this decline in growth rate?
A. Decline in oil prices
B. Drought in the agricultural sector
C. Increase in interest rates
D. Decrease in government sp\ending
Question 6
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) curve is given by MR = -2, and the firm's marginal \cost (MC) curve is given by MC = 5, what is the firm's optimal price?
A. ₦20
B. ₦25
C. ₦30
D. ₦35
Question 7
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). If the country's consumption (C) is ₦500 billion, investment (I) is ₦200 billion, government sp\ending (G) is ₦300 billion, exports (X) are ₦400 billion, and imports (M) are ₦200 billion, what is the country's GDP?
A. ₦1.1 trillion
B. ₦1.2 trillion
C. ₦1.3 trillion
D. ₦1.4 trillion
Question 8
A company in Nigeria produces 500 units of a product per day. The \cost of production is ₦1,000 per unit. If the selling price is ₦1,200 per unit, what is the profit per unit?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases from 4 to 6 units, and the firm's capital (K) remains cons\tant at 9 units, what is the percentage change in output (Q)?
A. -10%
B. -5%
C. 0%
D. 5%
Question 10
A government budget is given by the equation B = T + I, where B is the budget, T is the tax revenue, and I is the interest payment. If the tax revenue is ₦100 and the interest payment is ₦50, what is the budget?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 11
A consumer's budget constraint is given by the equation 2x + 3y = 12, where x and y are the quantities of two goods. If the consumer's indifference curves are given by the equation u(x, y) = xy, find the optimal values of x and y.
A. x = 2, y = 2
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 5, y = 1
Question 12
A consumer's budget constraint is given by the equation 2x + 3y = 12, where x and y are the quantities of two goods. If the consumer's indifference curves are given by the equation u(x, y) = xy, find the optimal values of x and y.
A. x = 2, y = 2
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 5, y = 1
Question 13
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost is MC = 10 + 2Q. What is the monopolist's profit-maximizing output?
A. 20
B. 30
C. 40
D. 50
Question 14
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) = 4x^2 + 5x + 1, find the value of x that minimizes \cost.
A. 1
B. 2
C. 3
D. 4
Question 15
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 at which the quantity demanded is 60?
A. ₦20
B. ₦30
C. ₦40
D. ₦50

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