POST UTME OAU 2017 Economics | Objective

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Question 1
A country's GDP is given by 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 consumption is $200 billion, investment is $50 billion, government sp\ending is $100 billion, exports are $150 billion, and imports are $100 billion, what is its GDP?
A. $300 billion
B. $400 billion
C. $500 billion
D. $600 billion
Question 2
A country's GDP is 100 billion naira, and its GNP is 120 billion naira. What is the country's net factor income from abroad?
A. 20 billion naira
B. 30 billion naira
C. 40 billion naira
D. 50 billion naira
Question 3
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.
Question 4
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's current values are C = 100, I = 50, G = 75, X = 150, and M = 50, calculate the country's GDP.
A. ₦325
B. ₦375
C. ₦425
D. ₦475
Question 5
A firm's revenue function is given by R(Q) = 20Q - 2Q^2. If the firm produces Q = 10 units, what is the total revenue?
A. Total revenue = ₦180
B. Total revenue = ₦190
C. Total revenue = ₦200
D. Total revenue = ₦210
Question 6
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes subsidies for fertilizers and seeds. If the demand for fertilizers is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price, and the supply of fertilizers is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price, what is the equilibrium price?
A. 20
B. 30
C. 40
D. 50
Question 7
A firm's \cost function is given by the equation C(x) = 100 + 2x^2, where x is the number of units produced. If the firm produces 10 units, what is the total \cost?
A. 300
B. 400
C. 500
D. 600
Question 8
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue (MR) is 80, what is the value of x?
A. 10
B. 20
C. 30
D. 40
Question 9
A country's money supply is given by M = 1000 + 0.5Y, where Y is the country's income. If the country's income is $100 billion, what is its money supply?
A. $50 billion
B. $100 billion
C. $150 billion
D. $200 billion
Question 10
A country's balance of payments (BOP) accounts are as follows:\n\nCurrent Account: ₦100 billion (exports) - ₦80 billion (imports) = ₦20 billion\nCapital Account: ₦30 billion (inflows) - ₦20 billion (outflows) = ₦10 billion\n\nDetermine the country's overall BOP balance.
A. ₦30 billion surplus
B. ₦20 billion surplus
C. ₦10 billion deficit
D. ₦30 billion deficit
Question 11
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 value of Qd?
A. 50
B. 60
C. 70
D. 80
Question 12
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q + 5. If the firm produces Q = 5 units, what is the total \cost?
A. Total \cost = ₦135
B. Total \cost = ₦145
C. Total \cost = ₦155
D. Total \cost = ₦165
Question 13
A firm's production function is given by Q = 2L^0.7K^0.3. If the firm's current input prices are w = 12 and r = 22, and it is currently producing 120 units of output, what is the firm's current profit-maximizing input combination?
A. (L, K) = (120, 120)
B. (L, K) = (180, 90)
C. (L, K) = (90, 180)
D. (L, K) = (0, 0)
Question 14
A firm's total revenue is given by TR = 100Q - 2Q^2, where Q is the quantity sold. If the firm sells 20 units, what is its total revenue?
A. $1000
B. $1200
C. $1400
D. $1600
Question 15
A monopolist faces the following demand and \cost functions:\n\nDemand: Qd = 100 - 2P\nCost: C = 20 + 5Q\n\nDetermine the monopolist's profit-maximizing price and quantity.
A. ₦50, 50 units
B. ₦40, 60 units
C. ₦30, 70 units
D. ₦20, 80 units

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