POST UTME OSUSTECH 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is given by the equation \( BOP = X - M \), where ( X ) is the value of exports and ( M ) is the value of imports. If the value of exports is ₦1,000 billion and the value of imports is ₦800 billion, what is the balance of payments?
A. ₦200 billion
B. ₦300 billion
C. ₦400 billion
D. ₦500 billion
Question 2
A firm's production function is given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital, and L is labor. If the firm's capital stock increases by 25% and labor remains cons\tant, what is the percentage change in output?
A. 12.5%
B. 25%
C. 50%
D. 100%
Question 3
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm increases its price from $10 to $15, what is the percentage change in quantity demanded?
A. 20%
B. 30%
C. 40%
D. 50%
Question 4
A firm's demand function is given by the equation \( Q = 100 - 2P \), where ( P ) is the price. If the price is ₦50, what is the quantity demanded?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 5
Consider a country with a balance of payments deficit. Which of the following is a likely consequence of this situation?
A. Increased imports
B. Decreased exports
C. Increased foreign investment
D. Increased domestic inflation
Question 6
A monopolist faces a demand curve given by the equation \( Q = 100 - 2P \). If the firm's marginal \cost is ₦50, what is the optimal price and quantity to produce?
A. Price: ₦50, Quantity: 25 units
B. Price: ₦75, Quantity: 50 units
C. Price: ₦100, Quantity: 75 units
D. Price: ₦125, Quantity: 100 units
Question 7
A firm's total revenue is given by the equation \( TR = 100x - 2x^2 \), where ( x ) is the number of units sold. If the firm sells 20 units, what is the total revenue?
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 8
The Nigerian government has implemented policies to promote agricultural industrialization. Which of the following is a likely consequence of this policy?
A. Increased food production
B. Reduced agricultural employment
C. Increased agricultural exports
D. Decreased agricultural productivity
Question 9
A firm is producing a good with a total revenue of ₦1000 and a total \cost of ₦800. What is the profit of the firm?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 10
Consider a country with a production function given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital, and L is labor. If the country's capital stock increases by 25% and labor remains cons\tant, what is the percentage change in output?
A. 12.5%
B. 25%
C. 50%
D. 100%
Question 11
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 increases labor from 4 to 9 units, and capital from 9 to 16 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A firm is operating in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will happen to 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 13
A firm is considering two different production processes. Process A requires an initial investment of ₦1,000,000 and has a fixed \cost of ₦200,000 per unit produced. Process B requires an initial investment of ₦500,000 and has a fixed \cost of ₦150,000 per unit produced. If the firm produces 1,000 units, which process will result in lower total \costs?
A. Process A
B. Process B
C. Both processes have the same total \costs
D. Neither process has lower total \costs
Question 14
A country's GDP is $100 billion, its imports are $20 billion and its exports are $25 billion. What is its balance of trade?
A. $5 billion surplus
B. $5 billion deficit
C. $10 billion surplus
D. $10 billion deficit
Question 15
A consumer has a budget of ₦10,000 to sp\end on two goods, X and Y. The price of good X is ₦5,000 and the price of good Y is ₦3,000. If the consumer sp\ends all of their budget, how many units of good X can they buy?
A. 1 unit
B. 2 units
C. 3 units
D. 4 units

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