POST UTME NILE UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a \cost function given by C = 100 + 2Q, where C is the total \cost and Q is the quantity produced. If the firm produces 20 units of the good, what is the marginal \cost?
A. 2
B. 4
C. 6
D. 8
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total \cost of producing 16 units of output.
A. ₦1600
B. ₦3200
C. ₦6400
D. ₦12800
Question 3
A country has a budget constraint given by B = 1000 + 0.5Y, where B is the government exp\enditure and Y is the income. If the government exp\enditure is 1200, what is the income?
A. 2000
B. 2200
C. 2400
D. 2600
Question 4
The Nigerian government has implemented a tax on imported goods to raise revenue. However, the tax has been criticized for being regressive because it disproportionately affects low-income households. U\sing the concept of elasticity of demand, explain why the tax may be regressive.
A. The tax may be regressive because low-income households have a higher propensity to consume imported goods.
B. The tax may be regressive because low-income households have a lower elasticity of demand for imported goods.
C. The tax may be regressive because low-income households have a higher income elasticity of demand for imported goods.
D. The tax may be regressive because low-income households have a lower income elasticity of demand for imported goods.
Question 5
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports (X) are ₦100 billion, imports (M) are ₦80 billion, foreign investment (F) is ₦20 billion, and domestic investment (I) is ₦15 billion, calculate the balance of payments.
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 6
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (x, y) = (100, 50)
B. (x, y) = (80, 60)
C. (x, y) = (120, 40)
D. (x, y) = (90, 55)
Question 7
A country's GDP can be calculated u\sing the formula: GDP = C + I + G + \( X - M \), where C is
A. consumption
B. investment
C. government sp\ending
D. net exports
Question 8
The opportunity \cost of a decision is the value of the next best alternative that is given up when a choice is made. This concept is related to the
A. law of diminishing marginal utility
B. law of supply and demand
C. principle of comparative advantage
D. theory of consumer behavior
Question 9
A firm has a \cost function given by C = 100 + 2Q, where C is the total \cost and Q is the quantity produced. If the firm produces 20 units of the good, what is the total \cost?
A. 200
B. 220
C. 240
D. 260
Question 10
A country has a budget constraint given by B = 1000 + 0.5Y, where B is the government exp\enditure and Y is the income. If the government exp\enditure is 1200, what is the income?
A. 2000
B. 2200
C. 2400
D. 2600
Question 11
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (x, y) = (100, 50)
B. (x, y) = (80, 60)
C. (x, y) = (120, 40)
D. (x, y) = (90, 55)
Question 12
A country has a GDP of ₦10 trillion and a GNP of ₦11 trillion. U\sing the concept of national income accounting, explain why the GNP may be higher than the GDP.
A. The GNP may be higher than the GDP because the GNP includes net factor income from abroad.
B. The GNP may be higher than the GDP because the GNP includes net transfers from abroad.
C. The GNP may be higher than the GDP because the GNP includes net investment income from abroad.
D. The GNP may be higher than the GDP because the GNP includes net income from abroad.
Question 13
A company is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦10 million and has a variable \cost of ₦5 per unit. Process B requires an initial investment of ₦15 million and has a variable \cost of ₦3 per unit. U\sing the concept of \cost-benefit analysis, determine which process is more profitable if the company sells 10,000 units per year.
A. Process A is more profitable because it has a lower variable \cost.
B. Process B is more profitable because it has a lower initial investment.
C. Process A is more profitable because it has a higher selling price.
D. Process B is more profitable because it has a higher selling price.
Question 14
A firm's demand function 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. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 15
A firm has a revenue function given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity produced. If the firm produces 10 units of the good, what is the total revenue?
A. 800
B. 900
C. 1000
D. 1100

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