POST UTME NILE UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a total revenue of ₦1.2 million and a total \cost of ₦800,000. If the firm's price elasticity of demand is 0.5, calculate the price elasticity of supply.
A. 0.2
B. 0.5
C. 1.0
D. 2.0
Question 2
A central bank has a money supply of ₦5 trillion and a reserve requirement of 20%. If the bank's required reserves are ₦1 trillion, calculate the excess reserves.
A. ₦1 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 3
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is 100, and the values of C, I, G, X, and M are 20, 15, 10, 25, and 5, respectively, what is the value of the country's net exports?
A. 10
B. 15
C. 20
D. 25
Question 4
A country's GDP is calculated as the sum of all final goods and services produced within its borders. Which of the following is NOT included in the calculation of GDP?
A. Wages and salaries paid to employees
B. Depreciation of capital assets
C. Value of intermediate goods used in production
D. Value of exports
Question 5
A firm's \cost function is given by the equation C = 2L + 3K, where C is the \cost, L is the labor, and K is the capital. If the firm wants to minimize its \cost, what is the optimal level of labor and capital?
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 30, K = 30
D. L = 40, K = 40
Question 6
A firm's total revenue is given by TR = 10Q - 0.5Q^2. If the firm's output is 20 units, what is its total revenue?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 7
A country is experiencing a recession. The government increases government sp\ending by ₦1 trillion. What is the likely effect on the aggregate demand curve?
A. Shift to the right
B. Shift to the left
C. No change
D. Uncertain effect
Question 8
A firm's marginal revenue is given by MR = 10 - Q. If the firm's output is 10 units, what is its marginal revenue?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 9
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is 100, and the values of C, I, G, X, and M are 20, 15, 10, 25, and 5, respectively, what is the value of the country's net exports?
A. 10
B. 15
C. 20
D. 25
Question 10
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by the equation Qs = 2P - 10, where Qs is the quantity supplied, what is the equilibrium price?
A. $10
B. $15
C. $20
D. $25
Question 11
A firm's revenue function is given by the equation R = 2Q^2, where R is the revenue and Q is the quantity sold. If the firm wants to maximize its revenue, what is the optimal level of quantity sold?
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 12
Consider a firm with a demand function Q = 100 - 2P and a supply function Q = 2P - 100. If the equilibrium price is ₦50, calculate the equilibrium quantity.
A. 100
B. 200
C. 300
D. 400
Question 13
A country's balance of payments account shows a trade deficit of $10 billion and a capital account surplus of $20 billion. What is the value of the current account balance?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 14
A government's budget constraint is given by the equation B = T + \( I - S \), where B is the budget deficit, T is tax revenue, I is government sp\ending, and S is savings. If the government's tax revenue is 50, and the values of I and S are 30 and 20, respectively, what is the value of the government's budget deficit?
A. 10
B. 15
C. 20
D. 25
Question 15
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. 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?
A. L = 4, K = 2
B. L = 2, K = 4
C. L = 1, K = 1
D. L = 8, K = 1

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