POST UTME AAUA 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government of a country imposes a tariff of 20% on imported goods. If the price of the imported good is $100, what is the price paid by the consumer?
A. $120
B. $120.20
C. $120.40
D. $120.60
Question 2
The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation facilities, and increa\sing the supply of fertilizers. However, the policy has also led to an increase in the price of rice, which has affected the purcha\sing power of consumers. U\sing the concept of opportunity \cost, explain the opportunity \cost of implementing this policy.
A. The opportunity \cost of implementing this policy is the increase in the price of rice.
B. The opportunity \cost of implementing this policy is the decrease in the production of other crops.
C. The opportunity \cost of implementing this policy is the increase in the \cost of production.
D. The opportunity \cost of implementing this policy is the decrease in the purcha\sing power of consumers.
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 elasticity of demand is 0.5, what is the price at which the quantity demanded is 60?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 4
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) curve is given by MR = 200 - 2Q, what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A country's balance of payments is given by the following equation: BOP = X - M. The country's exports are $100 billion and its imports are $150 billion. What is the country's balance of payments?
A. -$50 billion
B. $50 billion
C. $100 billion
D. $150 billion
Question 6
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's labor (L) increases by 20% and its capital (K) remains cons\tant, what will be the effect on its output?
A. Output will increase by 10%
B. Output will increase by 20%
C. Output will remain unchanged
D. Output will decrease by 10%
Question 7
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is 100, investment is 50, government sp\ending is 75, exports are 150, and imports are 100, what is the country's GDP?
A. 275
B. 300
C. 325
D. 350
Question 8
A firm's total revenue (TR) is given by TR = 100Q - 2Q^2. If the firm's output (Q) increases by 10%, what will be the effect on its total revenue?
A. TR will increase by 10%
B. TR will increase by 20%
C. TR will remain unchanged
D. TR will decrease by 10%
Question 9
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production functions are given by Q_A = 10L^0.5K^0.5 and Q_B = 5L^0.5K^0.5. If the firm has 100 units of labor and 50 units of capital, what is the total output?
A. 1000
B. 2000
C. 3000
D. 4000
Question 10
A country's GDP is ₦1,000,000 and its GNP is ₦1,100,000. What is the net factor income from abroad?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 11
A firm's \cost function is given by C(q) = 2q^2 + 3q. The firm's revenue function is given by R(q) = 10q. What is the firm's profit function?
A. P(q) = 8q^2 + 3q
B. P(q) = 8q^2 - 3q
C. P(q) = 8q^2 + 10q
D. P(q) = 8q^2 - 10q
Question 12
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Question 13
A country's national income is ₦1,500,000. If the government sp\ends ₦200,000 on infrastructure, what is the multiplier effect on the national income?
A. k = 2
B. k = 2.5
C. k = 3
D. k = 3.5
Question 14
A firm's total revenue is given by TR = 100Q - 2Q^2. If the firm sells 20 units of the product, what is the marginal revenue (MR) at this quantity?
A. 80
B. 90
C. 100
D. 110
Question 15
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain

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