POST UTME SKYLINE UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
An open economy experiences a decrease in its export price index. What is the likely effect on its balance of payments?
A. An improvement in the current account balance
B. A deterioration in the current account balance
C. No change in the current account balance
D. A decrease in the capital account balance
Question 2
Agricultural development in Nigeria is hindered by
A. lack of irrigation facilities
B. inadequate funding
C. poor transportation network
D. all of the above
Question 3
A country's GDP at market price is ₦100 billion. If the government imposes a 10% Value-Added Tax (VAT) on all goods and services, what is the new GDP at market price?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 4
A firm operating under perfect competition faces a market demand curve that is linear and downward-sloping. If the firm's average total \cost (ATC) curve is U-shaped and the market price is $10, what is the firm's profit-maximizing revenue?
A. $100
B. $200
C. $300
D. $400
Question 5
A firm's demand for labor is given by the equation \( L = 100 - 2P \), where L is the quantity of labor demanded and P is the price of labor. If the price of labor increases by 10%, what is the new quantity of labor demanded?
A. 80
B. 90
C. 100
D. 110
Question 6
A firm's supply function is given by the equation \( Q = 50 + 2P \), where Q is the quantity supplied and P is the price. If the price increases by 20%, what is the new quantity supplied?
A. 60
B. 70
C. 80
D. 90
Question 7
A country's balance of payments is given by the equation \( BOP = X - M \), where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports increases by 15% and the value of imports decreases by 10%, what is the new balance of payments?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 8
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 6, y = 0
D. x = 0, y = 6
Question 9
Consider a firm operating in a perfectly competitive market. 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 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the marginal product of labor?
A. 1/4
B. 1/2
C. 1
D. 2
Question 11
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 6, y = 0
D. x = 0, y = 6
Question 12
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal \cost curve
C. average revenue curve
D. average \cost curve
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the marginal product of capital?
A. 1/4
B. 1/2
C. 1
D. 2
Question 14
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the firm's \cost function is given by C = 10L + 20K, what is the marginal product of labor?
A. 2
B. 3
C. 4
D. 5
Question 15
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. P = 50, Q = 25
B. P = 75, Q = 50
C. P = 25, Q = 50
D. P = 50, Q = 75

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