Practice post utme achievers university economics 2021 Past Questions

Question 1

The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the informal sector. The policy requires all bu\sinesses with annual turnover above ₦5 million to register and pay taxes. However, the policy has been met with resis\tance from some bu\siness owners who argue that it will increase their \costs and reduce their competitiveness. What is the likely impact of this policy on the informal sector?

A. The policy will lead to a significant increase in tax revenue from the informal sector.

B. The policy will lead to a decrease in the number of bu\sinesses in the informal sector.

C. The policy will have no impact on the informal sector.

Correct D. The policy will lead to a shift of bu\sinesses from the informal to the formal sector.

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. However, the country also imports goods worth ₦100 billion and exports goods worth ₦120 billion. What is the country's balance of payments?

A. The country has a trade deficit of ₦20 billion.

Correct B. The country has a trade surplus of ₦20 billion.

C. The country has a balance of payments deficit of ₦20 billion.

D. The country has a balance of payments surplus of ₦20 billion.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A farmer in Nigeria produces 100 bags of maize per season. Each bag of maize is sold for ₦10,000. However, the farmer incurs a \cost of ₦5,000 per bag. What is the farmer's profit per season?

A. ₦500,000

B. ₦1,000,000

Correct C. ₦1,500,000

D. ₦2,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A country's GNP is calculated as the sum of its GDP plus its net factor income from abroad. If a country's GDP is ₦1 trillion and its net factor income from abroad is ₦100 billion, what is its GNP?

A. ₦1.1 trillion

Correct B. ₦1.2 trillion

C. ₦1.3 trillion

D. ₦1.4 trillion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A government is considering a policy to increase the price of a commodity by 10%. However, the policy is expected to lead to a decrease in demand by 5%. What is the likely impact of the policy on the government's revenue?

A. The government's revenue will increase by 5%.

Correct B. The government's revenue will decrease by 5%.

C. The government's revenue will remain the same.

D. The government's revenue will increase by 10%.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm is producing 100 units of output, what is the implication of this intersection point on the firm's profit-maximizing output level?

Correct A. The firm is producing at its minimum point on the average total \cost (ATC) curve.

B. The firm is producing at its maximum point on the average total \cost (ATC) curve.

C. The firm is producing at its minimum point on the average variable \cost (AVC) curve.

D. The firm is producing at its maximum point on the average variable \cost (AVC) curve.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A central bank is considering a contractionary monetary policy to combat inflation. If the central bank reduces the money supply by 10% and the velocity of money is 2, what is the expected effect on the price level?

A. The price level will increase by 20%.

Correct B. The price level will decrease by 20%.

C. The price level will remain unchanged.

D. The price level will increase by 10%.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A government is considering a tax on a particular good to raise revenue. If the tax is imposed and the demand for the good is inelastic, what is the expected effect on the price of the good?

Correct A. The price of the good will increase.

B. The price of the good will decrease.

C. The price of the good will remain unchanged.

D. The price of the good will increase by a smaller amount than the tax.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A firm is considering investing in a new project. If the project has a net present value (NPV) of ₦100,000 and the firm's \cost of capital is 10%, what is the expected return on investment (ROI) for the project?

Correct A. 10%

B. 15%

C. 20%

D. 25%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A firm is producing a good with the following \cost function: C(q) = 2q^2 + 10q + 100. If the firm's revenue function is R(q) = 20q, what is the profit-maximizing output level?

A. 10 units

Correct B. 20 units

C. 30 units

D. 40 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue (MR) is 80, find the value of x.

A. 10

B. 20

Correct C. 30

D. 40

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A country's GDP is given by the equation GDP = C + I + G + $ X - M $, where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $15 billion, exports are $30 billion, and imports are $20 billion, find the value of X.

A. 50

B. 60

C. 70

Correct D. 80

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

A firm's \cost function is given by the equation C(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm produces 10 units, find the total \cost.

A. 50

B. 60

Correct C. 70

D. 80

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A country's national income is given by the equation Y = C + I + G + $ X - M $, where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's national income is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $15 billion, exports are $30 billion, and imports are $20 billion, find the value of X.

A. 50

B. 60

C. 70

Correct D. 80

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

A firm's revenue function is given by the equation R(x) = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, find the total revenue.

A. 1000

Correct B. 1200

C. 1400

D. 1600

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

A country's GDP is given by the equation GDP = C + I + G + $ X - M $, where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $15 billion, exports are $30 billion, and imports are $20 billion, find the value of X.

A. 50

B. 60

C. 70

Correct D. 80

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A firm's \cost function is given by the equation C(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm produces 10 units, find the total \cost.

A. 50

B. 60

Correct C. 70

D. 80

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A country's national income is given by the equation Y = C + I + G + $ X - M $, where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's national income is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $15 billion, exports are $30 billion, and imports are $20 billion, find the value of X.

A. 50

B. 60

C. 70

Correct D. 80

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A firm is operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its production from 100 units to 120 units, what is the opportunity \cost of producing the additional 20 units?

A. ₦10

Correct B. ₦20

C. ₦30

D. ₦40

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A consumer has a budget of ₦1000 and faces the following prices for two goods: good X at ₦200 and good Y at ₦300. If the consumer sp\ends all of their budget on the two goods, what is the opportunity \cost of buying one more unit of good X?

Correct A. ₦100

B. ₦200

C. ₦300

D. ₦400

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

A firm is producing a good with the following total revenue function: TR = 2x^2 + 10x + 5, where x is the number of units produced. If the firm produces 5 units, what is the marginal revenue?

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

A central bank is considering a monetary policy to reduce inflation. If the central bank increases the reserve requirement for commercial banks, what is the likely effect on the money supply?

A. Increase

Correct B. Decrease

C. No effect

D. Uncertain

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A firm is producing a good with the following production function: Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm increases the labor from 4 units to 6 units, what is the percentage change in output?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. Which of the following scenarios would lead to an improvement in the balance of payments?

Correct A. A 10% increase in export prices and a 5% decrease in import prices

B. A 5% decrease in export prices and a 10% increase in import prices

C. A 10% increase in export prices and a 10% increase in import prices

D. A 5% decrease in export prices and a 5% decrease in import prices

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A central bank uses open market operations to increase the money supply. Which of the following tools would it use to achieve this goal?

Correct A. Buying government securities from commercial banks

B. Selling government securities to commercial banks

C. Increa\sing the reserve requirement for commercial banks

D. Lowering the discount rate

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME ACHIEVERS UNIVERSITY 2021 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: