POST UTME OAU 2024 Economics | Objective

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Question 1
A firm's demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal \cost is MC = 10, what is the profit-maximizing price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 2
A country's balance of payments (BOP) is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are ₦100 billion and imports are ₦120 billion, what is the country's balance of payments?
A. ₦20 billion surplus
B. ₦20 billion deficit
C. ₦10 billion surplus
D. ₦10 billion deficit
Question 3
A firm is considering investing in a new techno\logy that will increase its productivity by 20%. The firm's current production function is Q = 2L^0.5K^0.5. What will be the new production function after the firm invests in the new techno\logy?
A. \( Q = 2.4L^0.5K^0.5 \)
B. \( Q = 2.2L^0.5K^0.5 \)
C. \( Q = 2.6L^0.5K^0.5 \)
D. \( Q = 2.8L^0.5K^0.5 \)
Question 4
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 billion, consumption is ₦30 billion, investment is ₦20 billion, government sp\ending is ₦15 billion, exports are ₦25 billion, and imports are ₦10 billion, what is the value of net exports?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 5
A country's national income is given by the equation Y = C + I + G + \( X - M \), where Y is national income, C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption, investment, government sp\ending, exports, and imports are 100, 20, 30, 50, and 40 respectively, what is its national income?
A. 150
B. 160
C. 170
D. 180
Question 6
Consider a consumer with a utility function U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 100, what is the optimal bundle of goods (x, y) that maximizes the consumer's utility?
A. x = 2, y = 10
B. x = 5, y = 8
C. x = 10, y = 5
D. x = 8, y = 5
Question 7
A firm has a total revenue function given by TR = 2Q^2 - 100Q + 500, where Q is quantity. If the firm's total \cost function is given by TC = Q^2 + 50Q + 100, what is the profit-maximizing quantity?
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 8
A country's balance of payments is given by the equation BOP = X - M + \( F - I \), where BOP is balance of payments, X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's exports, imports, foreign investment, and domestic investment are 100, 40, 20, and 30 respectively, what is its balance of payments?
A. 30
B. 40
C. 50
D. 60
Question 9
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases labor from 100 to 121 units, and capital from 100 to 121 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
A country's inflation rate is given by the equation I = \( P - P_0 \)/P_0 x 100, where I is inflation rate, P is current price level, and P_0 is base price level. If the current price level is 100 and the base price level is 80, what is the inflation rate?
A. 12.5%
B. 15%
C. 17.5%
D. 20%
Question 11
A central bank uses the monetary policy tool of open market operations to increase the money supply. If the central bank buys ₦100 billion worth of government securities from commercial banks, what is the expected effect on the money supply?
A. Increase by ₦50 billion
B. Increase by ₦100 billion
C. Decrease by ₦50 billion
D. Decrease by ₦100 billion
Question 12
A firm's demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue is MR = 20, what is the profit-maximizing quantity?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 13
A consumer has the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are $4 and $6 respectively, and the consumer's income is $100, what is the optimal bundle of x and y that the consumer should purchase?
A. \( x = 10, y = 5 \)
B. \( x = 5, y = 10 \)
C. \( x = 15, y = 3 \)
D. \( x = 20, y = 2 \)
Question 14
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 billion, consumption is ₦30 billion, investment is ₦20 billion, government sp\ending is ₦15 billion, exports are ₦25 billion, and imports are ₦10 billion, what is the value of government sp\ending?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 15
A consumer has a budget of ₦1000 and a demand curve for a good with the following equation: Qd = 100 - 2P. What is the maximum quantity the consumer can buy?
A. Q = 50
B. Q = 60
C. Q = 70
D. Q = 80

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