POST UTME AAUA 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is given by the following equation: BOP = X - M. If the country's exports (X) are given by X = 100 + 2Y and its imports (M) are given by M = 50 + 3Y, what is the country's balance of payments (BOP) when Y = 10?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 2
A consumer has a utility function of U = 2x + 3y and budget constraint of 100. If the prices of x and y are 5 and 10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 3
A monopolist produces a product with a demand function of Q = 100 - 2P and a \cost function of C = 20 + 5Q. What is the profit-maximizing price and quantity?
A. P = 30, Q = 40
B. P = 40, Q = 30
C. P = 50, Q = 20
D. P = 60, Q = 10
Question 4
The national income of a country is given by the following equation: \( Y = C + I + G \), where Y is the national income, C is the consumption, I is the investment, and G is the government exp\enditure. If the consumption is ₦500 billion, the investment is ₦200 billion, and the government exp\enditure is ₦300 billion, what is the national income?
A. ₦1000 billion
B. ₦1005 billion
C. ₦1002 billion
D. ₦1008 billion
Question 5
The government of Nigeria has implemented a policy to increase agricultural production. The policy involves providing subsidies to farmers and investing in irrigation infrastructure. However, the policy has also led to an increase in the price of agricultural products. U\sing the concept of opportunity \cost, analyze the impact of the policy on the economy.
A. The policy has increased the opportunity \cost of producing agricultural products.
B. The policy has decreased the opportunity \cost of producing agricultural products.
C. The policy has no impact on the opportunity \cost of producing agricultural products.
D. The policy has increased the opportunity \cost of consuming agricultural products.
Question 6
The government of Nigeria has implemented a value-added tax (VAT) to increase revenue. The VAT rate is 5% and it applies to all goods and services. U\sing the concept of tax incidence, analyze the impact of the VAT on the consumer and the producer.
A. The VAT has increased the tax burden on the consumer.
B. The VAT has decreased the tax burden on the consumer.
C. The VAT has no impact on the tax burden of the consumer.
D. The VAT has increased the tax burden on the producer.
Question 7
A consumer has a utility function of U = 2x + y and budget constraint of 100. If the prices of x and y are 5 and 10 respectively, what is the consumer's optimal bundle?
A. x = 20, y = 10
B. x = 10, y = 20
C. x = 15, y = 15
D. x = 25, y = 5
Question 8
A firm has a production function of Q = 3L + 2K and \cost function of C = 20 + 3L + 2K. If the price of the product is 30, what is the profit-maximizing level of labor and capital?
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 15, K = 3
D. L = 20, K = 2
Question 9
A firm has a production function of Q = 2L + 3K and \cost function of C = 10 + 2L + 3K. If the price of the product is 20, what is the profit-maximizing level of labor and capital?
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 15, K = 3
D. L = 20, K = 2
Question 10
A consumer has a utility function of U = 2x + 3y. If the prices of x and y are $5 and $10 respectively, and the consumer has a budget of $50, what is the optimal bundle of x and y to consume?
A. x = 5, y = 2
B. x = 10, y = 5
C. x = 15, y = 10
D. x = 20, y = 15
Question 11
A country's GDP is ₦1.2 trillion, its imports are ₦300 billion, and its exports are ₦250 billion. What is the country's balance of trade?
A. ₦50 billion surplus
B. ₦0 billion
C. ₦50 billion deficit
D. ₦100 billion deficit
Question 12
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 10x + 20y = 100, what is the consumer's optimal bundle of x and y?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 13
A country's balance of payments is given by the following equation: BOP = X - M. If the country's exports (X) are given by X = 100 + 2Y and its imports (M) are given by M = 50 + 3Y, what is the country's balance of payments (BOP) when Y = 10?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 14
A monopolist's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 4Q, what is the firm's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 15
The balance of payments (BOP) of a country is given by the following 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 surplus
B. ₦20 billion deficit
C. ₦10 billion surplus
D. ₦10 billion deficit

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