POST UTME AAUA 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the net factor income from abroad?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 2
A firm's demand curve is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is ₦50, what is the quantity demanded?
A. 50
B. 75
C. 100
D. 125
Question 3
A government budget is ₦500 billion, with ₦200 billion allocated for capital exp\enditure and ₦150 billion for recurrent exp\enditure. What is the percentage of the budget allocated for capital exp\enditure?
A. 20%
B. 30%
C. 40%
D. 50%
Question 4
A country's balance of payments is given by the 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 ₦100,000 and the value of imports is ₦80,000, what is the balance of payments?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 5
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where GDP is the Gross Domestic Product, C is the consumption, I is the investment, G is the government sp\ending, X is the value of exports, and M is the value of imports. If the value of consumption is ₦100,000, the value of investment is ₦50,000, the value of government sp\ending is ₦20,000, the value of exports is ₦100,000, and the value of imports is ₦80,000, what is the Gross Domestic Product?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 6
A consumer's indifference curve is represented by the equation ( u(x,y) = x + 2y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. (100, 50)
B. (50, 100)
C. (0, 0)
D. (200, 0)
Question 7
A firm's demand function is given by \( q = 100 - 2p \). If the firm's marginal revenue function is ( MR(p) = 100 - 2p ), what is the firm's optimal price?
A. 20
B. 30
C. 40
D. 50
Question 8
A country's GDP is calculated as the sum of the value of all final goods and services produced within the country during a given period. Which of the following is NOT included in the calculation of GDP?
A. The value of all intermediate goods and services
B. The value of all final goods and services
C. The value of all capital goods
D. The value of all government services
Question 9
A country's GDP is ₦1,500 billion, its imports are ₦300 billion, and its exports are ₦400 billion. What is the country's GDP at market price?
A. ₦1,600 billion
B. ₦1,700 billion
C. ₦1,800 billion
D. ₦2,000 billion
Question 10
A firm's revenue function is given by the equation R = 2Q^2 + 10Q, where R is the total revenue and Q is the quantity sold. If the quantity sold is 5 units, what is the total revenue?
A. 150
B. 200
C. 250
D. 300
Question 11
The concept of returns to scale in production theory implies that as the input of a variable factor increases, the output of the firm will increase at a rate that is proportional to the increase in the input. Which of the following is a characteristic of a firm operating under increa\sing returns to scale?
A. The average product of labor increases as the firm expands its production
B. The marginal product of labor decreases as the firm expands its production
C. The total product of labor increases at a decrea\sing rate as the firm expands its production
D. The average product of labor decreases as the firm expands its production
Question 12
A firm's elasticity of demand is given by the equation E = \( ΔQ / ΔP \) × \( P / Q \), where E is the elasticity of demand, ΔQ is the change in quantity demanded, ΔP is the change in price, P is the price, and Q is the quantity demanded. If the price is ₦50 and the quantity demanded is 100 units, and the change in price is ₦10 and the change in quantity demanded is 20 units, what is the elasticity of demand?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 13
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor and K is capital. If the firm's labor and capital are 16 and 9 units respectively, what is the value of the marginal product of labor?
A. 1/2
B. 1
C. 2
D. 3
Question 14
A firm is considering two investment projects, A and B. Project A requires an initial investment of ₦100,000 and is expected to generate a return of ₦120,000 per year for 5 years. Project B requires an initial investment of ₦150,000 and is expected to generate a return of ₦180,000 per year for 5 years. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 15
A firm is producing a good with a cons\tant marginal \cost and a downward-sloping demand curve. The firm is currently producing at a level where the price of the good is ₦100. If the firm increases its production by 10%, what will happen to the price of the good?
A. The price will increase by 10%.
B. The price will decrease by 10%.
C. The price will remain the same.
D. The price will increase by more than 10%.

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