POST UTME AFE BABALOLA UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's reserve requirement is 20%. If the bank's deposits are 100 million naira, what is the minimum amount of cash the bank must hold?
A. 20 million naira
B. 25 million naira
C. 30 million naira
D. 35 million naira
Question 2
The opportunity \cost of producing one more unit of a good is the value of the next best alternative that must be given up. If a firm is producing at a point where the marginal product of labor is 4 units and the wage rate is ₦200 per unit, what is the opportunity \cost of producing one more unit of the good?
A. ₦800
B. ₦400
C. ₦600
D. ₦1000
Question 3
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. ₦0.5 trillion
D. ₦0.1 trillion
Question 4
A firm is producing at a point on its production function where the marginal product of labor is 10 units of output per additional worker. If the wage rate is $20 per worker, what is the profit-maximizing level of employment?
A. 5 workers
B. 10 workers
C. 15 workers
D. 20 workers
Question 5
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is $10. What is the profit-maximizing price?
A. $40
B. $50
C. $60
D. $70
Question 6
A country's balance of payments (BOP) accounts are a statistical record of all economic transactions between residents and non-residents over a specific period. Which of the following is NOT a component of the BOP?
A. Current Account
B. Capital Account
C. Financial Account
D. Goods and Services Account
Question 7
A monopoly firm faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost (MC) is ₦50 per unit. If the firm's profit-maximizing output is 20 units, what is the firm's price?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 8
A farmer in Nigeria plans to cultivate 100 hectares of maize. If the price of maize is ₦10,000 per ton, and the \cost of production is ₦8,000 per ton, what is the farmer's profit per ton?
A. ₦2,000
B. ₦3,000
C. ₦4,000
D. ₦5,000
Question 9
A firm's demand function is given by Q = 100 - 2P. If the price of the product is 50 naira, what is the quantity demanded?
A. 25 units
B. 50 units
C. 75 units
D. 100 units
Question 10
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2, where Q is the quantity produced. If the firm produces 20 units, what is the total \cost?
A. ₦500
B. ₦600
C. ₦700
D. ₦800
Question 11
A country's balance of payments account is given by:\n\nImports: ₦500 billion\nExports: ₦700 billion\nTransfer payments: ₦200 billion\nForeign investment: ₦300 billion\n\nCalculate the current account balance.
A. ₦200 billion surplus
B. ₦300 billion deficit
C. ₦400 billion surplus
D. ₦500 billion deficit
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 13
A country's GDP is 100 billion naira. Its imports are 20 billion naira, and its exports are 15 billion naira. What is its balance of payments?
A. -5 billion naira
B. 0 billion naira
C. 5 billion naira
D. 10 billion naira
Question 14
A central bank increases the money supply by ₦100 billion. If the velocity of money is 5, calculate the increase in the price level.
A. 2%
B. 3%
C. 4%
D. 5%
Question 15
A government imposes a tax on a particular good. The supply curve shifts to the left, and the demand curve shifts to the right. What is the effect on the equilibrium price and quantity?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases

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