POST UTME SUMMIT UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds a certain threshold. What is the name of this threshold?
A. The Marshall-Lerner condition
B. The J-curve effect
C. The Balance of Payments Identity
D. The Elasticity Condition
Question 2
The government of Nigeria has implemented a policy to increase the production of rice by 20% in the next year. If the current price of rice is ₦100 per ki\logram, what is the expected price of rice in the next year?
A. ₦120
B. ₦110
C. ₦100
D. ₦90
Question 3
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's budget constraint is given by 2x + 3y = 12, what is the consumer's optimal bundle?
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 4
Agricultural development in Nigeria has been hindered by the lack of access to credit facilities for farmers. Which of the following government policies would most likely address this issue?
A. Establishment of a state-owned bank to provide credit facilities to farmers
B. Introduction of a cash crop subsidy program to encourage farmers to grow high-value crops
C. Implementation of a crop insurance program to mitigate the risks associated with farming
D. Creation of a farmers' cooperative to pool resources and negotiate better prices for their produce
Question 5
A firm is producing a good with a demand curve given by Q = 100 - 2P. The firm's marginal \cost is ₦5 per unit. What is the profit-maximizing price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 6
The elasticity of demand for a commodity is measured by the percentage change in the quantity demanded in response to a given percentage change in the price of the commodity. If the demand for a commodity is elastic, what will happen to the total revenue of the firm if the price of the commodity increases by 10%?
A. Total revenue will increase by 10%
B. Total revenue will decrease by 10%
C. Total revenue will increase by 20%
D. Total revenue will decrease by 20%
Question 7
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
B. 2
C. 3
D. 4
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 9
A firm operating in a perfectly competitive market is characterized by which of the following?
A. A \single price maker
B. A large number of firms producing a homogeneous product
C. A firm that can influence the market price
D. A firm that operates in a monopoly market
Question 10
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase
B. Decrease
C. No effect
D. Uncertain
Question 11
The government of a country imposes a tax on a particular commodity. The supply curve of the commodity is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price of the commodity. The demand curve of the commodity is given by Q = 200 - 3P. If the government imposes a tax of ₦10 per unit of the commodity, what will be the new equilibrium price of the commodity?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 12
Consider a country that has a GDP of ₦100 billion and a GNP of ₦120 billion. What is the country's net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 13
A firm's demand for labor is given by the equation Qd = 100L^\( -0.5 \), where Qd is the quantity of labor demanded and L is the wage rate. If the wage rate increases by 20%, what is the percentage change in the quantity of labor demanded?
A. -10%
B. -5%
C. 0%
D. 10%
Question 14
A firm is producing a good with a total revenue of ₦100,000 and a total \cost of ₦80,000. If the firm's marginal revenue is ₦5,000 and its marginal \cost is ₦3,000, should the firm produce more or less of the good?
A. Increase production
B. Decrease production
C. Keep production cons\tant
D. Insufficient information
Question 15
The utility function of a consumer is given by U = 2x + 3y, where U is the utility and x and y are the quantities of two goods. If the consumer has a budget of ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, find the quantities of the two goods that maximize the utility.
A. 10, 20
B. 20, 10
C. 15, 15
D. 25, 5

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