POST UTME MOUNTAIN TOP UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A central bank uses a monetary policy tool to increase the money supply in the economy. Which of the following tools would most likely lead to an increase in the money supply?
A. Open market operations
B. Reserve requirements
C. Discount rate
D. Foreign exchange intervention
Question 2
A central bank increases the discount rate. What is the effect on the money supply?
A. Money supply increases
B. Money supply decreases
C. Money supply remains the same
D. Money supply becomes negative
Question 3
A firm's demand curve is given by the equation Qd = 100 - 2P. If the firm's supply curve is given by the equation Qs = 2P, what is the equilibrium price?
A. 20
B. 30
C. 40
D. 50
Question 4
A firm's revenue function is given by R(q) = 20q - 0.5q^2. If the \cost function is given by C(q) = 2q^2 + 10q + 5, find the profit-maximizing quantity.
A. q = 5
B. q = 10
C. q = 15
D. q = 20
Question 5
A country's money supply is given by M = 1000 + 0.5Y. If the country's GDP is ₦500 billion, what is the money supply?
A. ₦250 billion
B. ₦500 billion
C. ₦750 billion
D. ₦1 trillion
Question 6
A country's balance of payments account is given by Current Account = 100 billion naira, Capital Account = 50 billion naira, and Financial Account = -20 billion naira. What is the value of the country's net foreign exchange earnings?
A. 130 billion naira
B. 140 billion naira
C. 150 billion naira
D. 160 billion naira
Question 7
A consumer has a budget of ₦1000 to sp\end on 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 all the budget on the two goods, what is the opportunity \cost of buying one more unit of good X?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 8
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping capital cons\tant, what percentage increase in labor is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the market price is P = 15, find the profit-maximizing quantity.
A. q = 5
B. q = 10
C. q = 15
D. q = 20
Question 10
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 5 units of output, what is the total \cost?
A. ₦125
B. ₦150
C. ₦175
D. ₦200
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue is MR = 50 - 2Q, what is the firm's optimal price?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 12
A consumer's utility function is given by U(x, y) = 2x^0.5y^0.5. If the consumer has a budget of ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the optimal bundle of x and y?
A. x = 2, y = 5
B. x = 5, y = 2
C. x = 10, y = 1
D. x = 1, y = 10
Question 13
A firm's demand function for a product is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to increase revenue by 20%, what percentage increase in price is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 14
A country's GDP is calculated as the sum of consumption, investment, government sp\ending, and net exports. If the country's GDP is ₦10 trillion, and the government sp\ending is ₦2 trillion, what is the sum of consumption and investment?
A. ₦8 trillion
B. ₦6 trillion
C. ₦4 trillion
D. ₦12 trillion
Question 15
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.

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