POST UTME SKYLINE UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Suppose 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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. -20%
B. -10%
C. 0%
D. 10%
Question 2
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $25 billion. What is its balance of payments?
A. $5 billion surplus
B. $5 billion deficit
C. $10 billion surplus
D. $10 billion deficit
Question 3
A country is experiencing a trade deficit of $100 million. If the country's GDP is $500 billion, what is the trade deficit as a percentage of GDP?
A. 0.02%
B. 0.05%
C. 0.1%
D. 0.2%
Question 4
A monopolist faces a market demand curve given by Q = 100 - 2P and a marginal revenue function MR = 200 - 2Q. Find the profit-maximizing price and quantity.
A. ₦150, 50
B. ₦200, 75
C. ₦250, 100
D. ₦300, 125
Question 5
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 10x + 5y = 50, find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
B. x = 3, y = 5
C. x = 4, y = 6
D. x = 5, y = 7
Question 6
A firm is considering investing in a new project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦70,000, Year 3: ₦90,000. U\sing the net present value (NPV) method, determine the minimum discount rate at which the project will be acceptable, assuming a discount rate of 10%.
A. 10%
B. 12%
C. 15%
D. 18%
Question 7
A firm is operating under perfect competition. If the market price is ₦100 and the firm's marginal \cost is ₦80, find the firm's profit-maximizing output.
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 8
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 is 100 and the value of imports is 80, what is the balance of payments?
A. 10
B. 20
C. 30
D. 40
Question 9
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1200 and the prices of x and y are ₦4 and ₦6 respectively, find the optimal quantities of x and y.
A. x = 60, y = 40
B. x = 40, y = 60
C. x = 30, y = 50
D. x = 50, y = 30
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, calculate the marginal product of labor.
A. 1.5
B. 2.5
C. 3.5
D. 4.5
Question 11
U\sing the Cobb-Douglas production function, determine the marginal product of labor (MPL) and the marginal product of capital (MPK) for a firm with the following production function: Q = 10L^0.5K^0.5, where Q is output, L is labor, and K is capital.
A. MPL = 5L^\( -0.5 \)K^0.5, MPK = 5L^0.5K^\( -0.5 \)
B. MPL = 10L^\( -0.5 \)K^0.5, MPK = 10L^0.5K^\( -0.5 \)
C. MPL = 20L^\( -0.5 \)K^0.5, MPK = 20L^0.5K^\( -0.5 \)
D. MPL = 30L^\( -0.5 \)K^0.5, MPK = 30L^0.5K^\( -0.5 \)
Question 12
Suppose the demand function for a commodity is given by Q = 100 - 2P and the supply function is given by Q = 2P + 10. Find the equilibrium price and quantity.
A. ₦50, 60
B. ₦40, 70
C. ₦30, 80
D. ₦20, 90
Question 13
U\sing the Marshall-Lerner condition, determine the effect of a 10% devaluation of the naira on the balance of payments of Nigeria, assuming the price elasticity of demand for exports is 2 and the price elasticity of demand for imports is 1.5.
A. The devaluation will lead to a surplus in the balance of payments.
B. The devaluation will lead to a deficit in the balance of payments.
C. The devaluation will have no effect on the balance of payments.
D. The devaluation will lead to a surplus in the current account and a deficit in the capital account.
Question 14
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 15
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm's revenue function is R(q) = 20q, find the profit-maximizing quantity of output.
A. 5 units
B. 10 units
C. 15 units
D. 20 units

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