POST UTME UNIOSUN 2019 Economics | Objective

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Question 1
Determine the price elasticity of demand for a product with a price elasticity of -2 and a 10% increase in price.
A. -1.5
Correct B. -2
C. -3
D. -4

Correct Answer: B

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Question 2
A firm has a production function of Q = 2L^0.5K^0.5. If the price of labor is $10 and the price of capital is $20, and the firm is currently producing 100 units of output, what is the marginal product of labor?
A. 0.5
Correct B. 1
C. 2
D. 4

Correct Answer: B

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Question 3
A country has a trade deficit of $100 billion and a current account deficit of $50 billion. What is the capital account surplus?
A. $50 billion
B. $100 billion
Correct C. $150 billion
D. $200 billion

Correct Answer: C

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Question 4
A government has a budget deficit of 5% of GDP and a tax revenue of 20% of GDP. What is the government's exp\enditure?
A. 25% of GDP
B. 30% of GDP
Correct C. 35% of GDP
D. 40% of GDP

Correct Answer: C

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Question 5
A central bank has a monetary policy of increa\sing the money supply by 10%. What is the expected effect on the inflation rate?
A. -5%
B. 0%
C. 5%
Correct D. 10%

Correct Answer: D

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Question 6
Calculate the Gross Domestic Product (GDP) of a country u\sing the following data: National Income (NI) = ₦100 billion, Net Factor Income from Abroad (NFIA) = ₦20 billion, and Net Indirect Tax (NIT) = ₦15 billion.
Correct A. ₦135 billion
B. ₦145 billion
C. ₦155 billion
D. ₦165 billion

Correct Answer: A

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Question 7
A firm has a total revenue of ₦1,500,000 and a total \cost of ₦1,200,000. If the price elasticity of demand is 2, and the price elasticity of supply is 1.5, what is the firm's profit?
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 8
A consumer has a utility function given by U(x, y) = 2x + 3y. If the consumer's income is ₦1,000, and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 100, y = 50
Correct B. x = 150, y = 75
C. x = 200, y = 100
D. x = 250, y = 125

Correct Answer: B

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Question 9
A firm has a demand function given by Q = 100 - 2P. If the firm's marginal \cost is MC = ₦10, and the price elasticity of demand is 2, what is the firm's optimal price?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 10
A central bank has a money supply function given by M = 1000 + 10Y. If the central bank's target inflation rate is 2%, and the current inflation rate is 3%, what is the central bank's optimal money supply?
A. ₦1100
Correct B. ₦1200
C. ₦1300
D. ₦1400

Correct Answer: B

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Question 11
A firm operating in a perfectly competitive market is characterized by which of the following?
A. A \single price maker
Correct B. Many firms producing a homogeneous product
C. A firm with a high degree of market power
D. A firm that is the only supplier of a good or service

Correct Answer: B

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Question 12
The opportunity \cost of producing one more unit of a good is the
A. Additional revenue generated from the sale of the good
B. The \cost of producing the good
Correct C. The \cost of producing one less unit of the good
D. The \cost of producing one more unit of the good

Correct Answer: C

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Question 13
A country's balance of payments is in equilibrium when the value of its
Correct A. Exports equals imports
B. Exports exceeds imports
C. Imports exceeds exports
D. Exports and imports are equal

Correct Answer: A

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Question 14
The elasticity of demand for a good is measured by the percentage change in the quantity demanded of the good in response to a 1% change in the price of the good. If the demand for a good is elastic, then the percentage change in the quantity demanded of the good will be
Correct A. Greater than 1%
B. Less than 1%
C. Equal to 1%
D. Greater than 0%

Correct Answer: A

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Question 15
A country's agricultural sector is characterized by which of the following?
Correct A. High labor intensity and low capital intensity
B. Low labor intensity and high capital intensity
C. High labor intensity and high capital intensity
D. Low labor intensity and low capital intensity

Correct Answer: A

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Question 16
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 17
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's exports increase by 15% and imports decrease by 10%, while foreign investment increases by 20% and domestic investment remains cons\tant, what is the new balance of payments?
A. Increase by 10%
B. Decrease by 5%
Correct C. Increase by 20%
D. Decrease by 15%

Correct Answer: C

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Question 18
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
Correct A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50

Correct Answer: A

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Question 19
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's revenue is ₦1000, what is the price elasticity of demand?
A. -0.5
Correct B. -1
C. -2
D. -5

Correct Answer: B

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Question 20
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP increases by 10% and consumption decreases by 5%, while investment increases by 20% and government sp\ending remains cons\tant, what is the new value of GDP?
Correct A. Increase by 12%
B. Decrease by 8%
C. Increase by 15%
D. Decrease by 12%

Correct Answer: A

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Question 21
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 is greater than the percentage change in its exchange rate. What is the implication of this condition for a country experiencing a devaluation?
A. The country's balance of payments will worsen.
Correct B. The country's balance of payments will improve.
C. The country's balance of payments will remain unchanged.
D. The country's balance of payments will dep\end on other factors.

Correct Answer: B

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Question 22
A monopolistically competitive firm faces a demand curve that is downward-sloping but has a cons\tant elasticity of -2. If the firm's marginal revenue is 120, what is its marginal \cost?
Correct A. 100
B. 120
C. 140
D. 160

Correct Answer: A

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Question 23
A consumer has a utility function given by U(x, y) = 2x^0.5y^0.5. If the consumer's income is 100 and the prices of x and y are 2 and 3 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 20
B. x = 20, y = 10
Correct C. x = 15, y = 15
D. x = 5, y = 25

Correct Answer: C

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Question 24
A country's GDP is 100 billion naira and its GNP is 120 billion naira. What is the country's net factor income from abroad?
A. 10 billion naira
Correct B. 20 billion naira
C. 30 billion naira
D. 40 billion naira

Correct Answer: B

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Question 25
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is 20, what is its profit-maximizing price?
A. 40
Correct B. 50
C. 60
D. 70

Correct Answer: B

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