POST UTME VERITAS UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments (BOP) is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period. Which of the following is a correct statement about the BOP?
A. The BOP is a measure of a country's economic growth.
B. The BOP is a measure of a country's trade deficit or surplus.
C. The BOP is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period.
D. The BOP is a measure of a country's inflation rate.
Question 2
A firm's production function is given by Q = 2L^0.5 K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦10000, find the optimal values of L and K.
A. L = 100, K = 25
B. L = 50, K = 50
C. L = 25, K = 100
D. L = 10, K = 200
Question 3
A firm is producing a good at a cons\tant marginal \cost of ₦100 per unit. The market demand for the good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm is currently producing 50 units, what is the price at which it should sell the good to maximize profits?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 4
A monopolist faces a market demand curve given by Qd = 100 - 2P and a marginal revenue function MR = 20 - 2Q. Find the profit-maximizing quantity and price.
A. 50 units, ₦75
B. 25 units, ₦100
C. 0 units, ₦200
D. 100 units, ₦50
Question 5
A country's GDP is 100 billion units of currency. Its GNP is 120 billion units of currency. What is the net factor income from abroad?
A. 10 billion
B. 20 billion
C. 30 billion
D. 40 billion
Question 6
A government imposes a tax of ₦10 on a firm's output. If the firm's supply curve is given by Qs = 10 + 3P, find the new supply curve and the deadweight loss.
A. Qs = 15 + 3P, ₦20
B. Qs = 20 + 3P, ₦30
C. Qs = 25 + 3P, ₦40
D. Qs = 30 + 3P, ₦50
Question 7
The money supply in an economy is given by the equation M = kPY, where M is the money supply, k is a cons\tant, P is the price level, and Y is the national income. If the price level is ₦100, the national income is ₦500 billion, and the cons\tant k is 0.01, what is the money supply?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 8
A government imposes a tax on a good, which increases its price by 20%. What is the effect on the quantity demanded of the good?
A. Increase
B. Decrease
C. No change
D. Indeterminate
Question 9
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is given by MC = 5 + 2Q. Find the monopolist's profit-maximizing price and quantity.
A. P = ₦50, Q = 25
B. P = ₦75, Q = 12.5
C. P = ₦100, Q = 0
D. P = ₦25, Q = 50
Question 10
The money supply in an economy is given by the equation M = kPY, where M is the money supply, k is a cons\tant, P is the price level, and Y is the national income. If the price level is ₦100, the national income is ₦500 billion, and the cons\tant k is 0.01, what is the money supply?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 11
A firm's production function is given by Q = 2L^0.5 K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦10000, find the optimal values of L and K.
A. L = 100, K = 25
B. L = 50, K = 50
C. L = 25, K = 100
D. L = 10, K = 200
Question 12
A country's national income is the total value of all final goods and services produced within its borders during a specific period. Which of the following is a correct statement about the national income?
A. The national income is the total value of all intermediate goods and services produced within a country's borders.
B. The national income is the total value of all final goods and services produced within a country's borders.
C. The national income is the total value of all goods and services produced within a country's borders, including intermediate goods.
D. The national income is the total value of all goods and services produced within a country's borders, excluding intermediate goods.
Question 13
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is given by MC = 5 + 2Q. Find the monopolist's profit-maximizing price and quantity.
A. P = ₦50, Q = 25
B. P = ₦75, Q = 12.5
C. P = ₦100, Q = 0
D. P = ₦25, Q = 50
Question 14
The Central Bank of Nigeria (CBN) uses monetary policy to control inflation. Which of the following is a consequence of a contractionary monetary policy?
A. Increase in interest rates
B. Decrease in money supply
C. Increase in inflation rate
D. Decrease in GDP
Question 15
The government of Nigeria has introduced a new policy aimed at increa\sing agricultural production. The policy involves providing subsidies to farmers who produce certain crops. If the government provides a subsidy of ₦100 per unit of a crop, and the market price of the crop is ₦200 per unit, what is the new price of the crop after the subsidy is provided?
A. ₦100
B. ₦150
C. ₦200
D. ₦250

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