POST UTME VERITAS UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments account is given by the following 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 billion and the value of imports is ₦120 billion, find the balance of payments.
A. ₦20 billion
B. ₦40 billion
C. ₦60 billion
D. ₦80 billion
Question 2
A firm's \cost function is given by C(Q) = 100 + 2Q + 0.5Q^2. If the firm's revenue function is R(Q) = 200Q, what is the firm's profit-maximizing quantity?
A. 10
B. 20
C. 30
D. 40
Question 3
A country's GDP is calculated as follows: GDP = C + I + G + \( X - M \). If the country's consumption (C) is ₦500 billion, investment (I) is ₦200 billion, government sp\ending (G) is ₦300 billion, exports (X) are ₦400 billion, and imports (M) are ₦200 billion, what is the country's GDP?
A. ₦1,300,000,000,000
B. ₦1,400,000,000,000
C. ₦1,500,000,000,000
D. ₦1,600,000,000,000
Question 4
A country's government imposes a tax on a particular good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity of the good?
A. The equilibrium price and quantity decrease.
B. The equilibrium price increases, and the quantity decreases.
C. The equilibrium price and quantity remain unchanged.
D. The equilibrium price decreases, and the quantity increases.
Question 5
A country's money supply is given by the equation M = 100 + 0.5Y, where M is the money supply and Y is the income. If the income is 1000, what is the money supply?
A. 150
B. 200
C. 250
D. 300
Question 6
A firm has a production function given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the price of labor is ₦50 per unit, what is the minimum \cost of production?
A. ₦5000
B. ₦7500
C. ₦10000
D. ₦12500
Question 7
A firm's \cost function is given by C(Q) = 100 + 2Q + 0.5Q^2. If the firm's revenue function is R(Q) = 200Q, what is the firm's profit-maximizing quantity?
A. 10
B. 20
C. 30
D. 40
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are fixed at 100 units each, what is the marginal product of labor?
A. 5
B. 10
C. 20
D. 50
Question 9
A monopolistically competitive firm faces a downward-sloping demand curve and has the ability to produce a unique product. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at a point where MR > MC, what will be the firm's optimal price and quantity?
A. The firm will produce at a point where MR = MC, and the optimal price and quantity will be determined by the intersection of the demand curve and the MC curve.
B. The firm will produce at a point where MR > MC, and the optimal price and quantity will be determined by the intersection of the demand curve and the MR curve.
C. The firm will produce at a point where MR < MC, and the optimal price and quantity will be determined by the intersection of the demand curve and the MC curve.
D. The firm will not produce at all, as the MR curve does not intersect the MC curve.
Question 10
A monopolist is facing a demand curve with an elasticity of -2. If the firm increases its price by 10%, what will happen to its revenue?
A. Revenue will increase by 20%
B. Revenue will decrease by 20%
C. Revenue will increase by 10%
D. Revenue will decrease by 10%
Question 11
Agricultural production in Nigeria is characterized by a high degree of seasonality. What is the main reason for this seasonality?
A. Climate change
B. Soil degradation
C. Seasonal rainfall patterns
D. Lack of irrigation facilities
Question 12
A country's balance of payments is in equilibrium when the current account and capital account are balanced. If the country's current account is in deficit, what is the implication for the capital account?
A. The capital account must be in surplus.
B. The capital account must be in deficit.
C. The capital account must be balanced.
D. The capital account is irrelevant.
Question 13
A firm has a production function given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the price of labor is ₦50 per unit, what is the minimum \cost of production?
A. ₦5000
B. ₦7500
C. ₦10000
D. ₦12500
Question 14
A firm is producing a good u\sing a production function with cons\tant returns to scale. If the firm increases its input of labor by 10%, what will happen to its output?
A. Output will increase by 10%
B. Output will increase by 20%
C. Output will remain the same
D. Output will decrease by 10%
Question 15
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is 50, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 5

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