POST UTME SUMMIT UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports (X) are ₦100 billion, imports (M) are ₦80 billion, foreign investment (F) is ₦20 billion, and domestic investment (I) is ₦15 billion, what is the country's balance of payments?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 2
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is P = 10, and the firm's \cost function is C = 2L + 3K, what is the firm's profit-maximizing level of output?
A. 20
B. 30
C. 40
D. 50
Question 3
A firm produces two goods, A and B. The production function for good A is Q_A = 2L + 3K, where L is labor and K is capital. The production function for good B is Q_B = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the total output?
A. 30
B. 40
C. 50
D. 60
Question 4
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is GDP, C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦10 trillion, consumption is ₦3 trillion, investment is ₦1 trillion, government sp\ending is ₦2 trillion, exports are ₦2 trillion, and imports are ₦1 trillion, what is the value of net exports?
A. ₦1 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 5
A country experiences a 10% increase in the money supply. If the velocity of money is 2, what is the expected effect on the price level?
A. 5% increase
B. 10% increase
C. 15% increase
D. 20% increase
Question 6
A firm's demand function is given by Q = 100 - 2P. If the price elasticity of demand is -2, what is the price at which the firm should sell its product?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
A country's economic growth rate is 5% per annum. If the country's GDP is ₦100 billion, what is the increase in GDP after 5 years?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 8
Consider a production function with cons\tant returns to scale, given by Q = 2K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital, and L is labor. If the price of capital is ₦100 per unit and the price of labor is ₦50 per unit, and if the firm's budget constraint is ₦10,000, what is the optimal combination of capital and labor that maximizes output?
A. K = 100, L = 200
B. K = 200, L = 100
C. K = 50, L = 200
D. K = 100, L = 50
Question 9
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 4Q, what is the firm's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 10
A perfectly competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 4Q, what is the firm's optimal quantity?
A. 50 units
B. 60 units
C. 70 units
D. 80 units
Question 11
A consumer has a utility function U = 2x + 3y, where x and y are the quantities of two goods. The prices of the goods are $2 and $3, respectively. If the consumer has a budget of $10, what is the marginal rate of substitution?
A. 1/2
B. 1/3
C. 2/3
D. 3/2
Question 12
The opportunity \cost of producing one more unit of a good is the
A. Marginal Benefit
B. Marginal Cost
C. Average Cost
D. Average Revenue
Question 13
The Nigerian government has implemented a policy to reduce inflation. Which of the following is a likely consequence of this policy?
A. Increased money supply
B. Reduced aggregate demand
C. Increased interest rates
D. Decreased inflation rate
Question 14
A country's GDP is ₦10 trillion, and its GNP is ₦12 trillion. What is the net factor income from abroad?
A. ₦2 trillion
B. ₦1 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 15
The Nigerian government has implemented policies to promote agricultural development. Which of the following is a likely consequence of these policies?
A. Increased food production
B. Reduced agricultural subsidies
C. Increased agricultural exports
D. Decreased agricultural employment

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