POST UTME ACHIEVERS UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production function for good X is given by X = 2L^0.5K^0.5, and the production function for good Y is given by Y = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, what is the total output?
A. 200
B. 250
C. 300
D. 350
Question 2
A country's balance of payments is given by the following table:\n\n| Category | Value |\n| --- | --- |\n| Exports | ₦100,000,000 |\n| Imports | ₦150,000,000 |\n| Net Factor Income | ₦20,000,000 |\n| Net Transfer | ₦10,000,000 |\n| Balance of Payments | ? |\n\nWhat is the balance of payments?
A. ₦-40,000,000
B. ₦-30,000,000
C. ₦-20,000,000
D. ₦-10,000,000
Question 3
The government of a country has decided to implement a new economic policy aimed at reducing inflation. The policy involves increa\sing the interest rate to 10% and reducing the money supply by 5%. Assuming the demand for money is given by M = 1000 + 0.5Y, where Y is the GDP, and the supply of money is given by M = 2000 + 0.8Y, find the new equilibrium GDP.
A. 5000
B. 6000
C. 7000
D. 8000
Question 4
The following table shows the data for a country's agricultural production for the year 2020:
A. The country's agricultural production increased by 10% compared to the previous year
B. The country's agricultural production decreased by 10% compared to the previous year
C. The country's agricultural production remained the same as the previous year
D. The country's agricultural production increased by 20% compared to the previous year
Question 5
The demand for a product is given by Q = 100 - 2P, where P is the price of the product. If the supply of the product is given by Q = 2P - 50, find the equilibrium price and quantity.
A. P = 25, Q = 50
B. P = 50, Q = 100
C. P = 75, Q = 150
D. P = 100, Q = 200
Question 6
A country has a budget surplus of ₦300 billion and a GDP of ₦5 trillion. If the exchange rate is 1 USD = 400 NGN, what is the budget surplus in USD?
A. 750 million USD
B. 1.5 billion USD
C. 2.25 billion USD
D. 3 billion USD
Question 7
In a perfectly competitive market, the equilibrium price and quantity are determined by the intersection of the market demand and supply curves. However, if the market demand curve is downward sloping and the market supply curve is upward sloping, what will be the effect on the equilibrium price and quantity if the government imposes a price ceiling of ₦100?
A. The price will rise to ₦100, and the quantity will increase.
B. The price will fall below ₦100, and the quantity will decrease.
C. The price will remain at ₦100, and the quantity will remain unchanged.
D. The price will rise above ₦100, and the quantity will decrease.
Question 8
A firm's production function is given by Q = 2L^0.5 K^0.5. If the firm's current output is 4 units and the number of workers (L) is 9, find the minimum number of machines (K) required to produce this output.
A. 1
B. 4
C. 9
D. 16
Question 9
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 current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when L = 16?
A. 1/2
B. 1
C. 2
D. 3
Question 10
A country's GNP is ₦120 billion, its GDP is ₦100 billion and its net factor income from abroad is ₦10 billion. What is its GNP?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 11
A country's GDP is ₦10 trillion, and its GNP is ₦12 trillion. What is the net factor income from abroad?
A. ₦2 trillion
B. ₦1 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 12
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2Q. Find the profit-maximizing quantity and price.
A. Q = 20, P = ₦60
B. Q = 30, P = ₦50
C. Q = 40, P = ₦40
D. Q = 50, P = ₦30
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 4 and 9 respectively, what is the output?
A. 12
B. 16
C. 20
D. 24
Question 14
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm has 100 units of labor and 50 units of capital, what is the total product of labor?
A. 100
B. 150
C. 200
D. 250
Question 15
The following diagram shows a balance of payments (BOP) for a country that imports and exports goods:
A. The country has a trade deficit
B. The country has a trade surplus
C. The country has a balance of payments deficit
D. The country has a balance of payments surplus

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