POST UTME WELLSPRING UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GNP at market price is ₦1,800,000,000. If the country's net factor income from abroad is ₦200,000,000, what is the GNP at factor \cost?
A. ₦1,600,000,000
B. ₦1,700,000,000
C. ₦1,800,000,000
D. ₦1,900,000,000
Question 2
A farmer in Nigeria has 500 hectares of land to cultivate maize. If the yield per hectare is 2.5 tons, what is the total yield from the land?
A. 1000
B. 1250
C. 1500
D. 2000
Question 3
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is increased by 10%, what is the new quantity demanded?
A. 80
B. 90
C. 100
D. 110
Question 4
The balance of payments (BOP) of a country is given by the equation BOP = X - M, where 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, what is the balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 5
A firm is considering two production processes: Process A, which \costs ₦100 per unit, and Process B, which \costs ₦120 per unit. If the firm produces 100 units, what is the opportunity \cost of u\sing Process B?
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 6
A monopolistically competitive firm faces a demand curve given by Qd = 100 - 2P. If the firm's marginal revenue (MR) is 50, what is the price at which the firm will produce 60 units?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
A country's balance of payments (BOP) is given by the equation BOP = X - M, where 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 ₦80 billion, what is the balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 8
The government of Nigeria has allocated ₦10 billion for the development of the agricultural sector. If the budget is to be shared equally among 10 states, what is the amount allocated to each state?
A. ₦1 billion
B. ₦1.5 billion
C. ₦2 billion
D. ₦2.5 billion
Question 9
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. However, the GDP of a country can be affected by the following factors: (i) the value of imports, (ii) the value of exports, (iii) the value of intermediate goods and services. Which of the following statements is correct?
A. The value of imports is added to the GDP.
B. The value of exports is subtracted from the GDP.
C. The value of intermediate goods and services is added to the GDP.
D. The value of imports and exports is subtracted from the GDP.
Question 10
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
A firm is producing a good with a production function given by Q = 2L^\( 1/2 \)K^\( 1/2 \). The firm's \cost function is C = 10L + 20K. What is the firm's profit-maximizing level of labor and capital?
A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 1
D. L = 1, K = 16
Question 12
A consumer's demand for a good is given by Q = 100 - 2P. The consumer's income is ₦1000. What is the consumer's price elasticity of demand?
A. PED = -0.5
B. PED = -1
C. PED = -1.5
D. PED = -2
Question 13
Consider a country with a fixed money supply of ₦10 billion. If the central bank decides to increase the money supply by 20%, what will be the new money supply in billions of naira?
A. ₦12 billion
B. ₦11 billion
C. ₦10.5 billion
D. ₦9.5 billion
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, calculate the marginal product of labor (MPL) and marginal product of capital (MPK).
A. MPL = 0.5, MPK = 0.5
B. MPL = 1, MPK = 1
C. MPL = 0.25, MPK = 0.25
D. MPL = 0.5, MPK = 0.25
Question 15
A consumer's demand for a good is given by Q = 100 - 2P. The consumer's income is ₦1000. What is the consumer's budget constraint?
A. P + 0.5Q = 1000
B. P - 0.5Q = 1000
C. P + 0.2Q = 1000
D. P - 0.2Q = 1000

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