Practice post utme al-hikmah university economics 2017 Past Questions

Question 1

A country's money supply is increa\sing at a rate of 10% per annum. If the country's initial money supply is ₦100 billion, what is the money supply after 5 years?

A. ₦161.05 billion

B. ₦162.05 billion

C. ₦163.05 billion

D. ₦164.05 billion

Question 2

A firm is considering the production of a new product. The firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor and capital inputs are 10 and 5, respectively, what is the quantity produced?

A. 20

B. 30

C. 40

D. 50

Question 3

The balance of payments (BOP) of a country is a statistical statement that summarizes all economic transactions between the residents and non-residents of a country over a specific period of time. Discuss the components of BOP.

A. Current account, capital account, and financial account are the components of BOP.

B. Current account, capital account, and financial account are not the components of BOP.

C. Current account and capital account are the components of BOP.

D. Current account and financial account are the components of BOP.

Question 4

A country's GDP is given by the equation GDP = C + I + G + $ X - M $. What is the meaning of the term $ X - M $?

A. The value of exports minus the value of imports

B. The value of imports minus the value of exports

C. The value of government sp\ending minus the value of investment

D. The value of consumption minus the value of government sp\ending

Question 5

A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 100, what is the consumer's optimal bundle of goods?

A. (10,10)

B. (15,5)

C. (20,0)

D. (0,20)

Question 6

A country's government is considering a tax on a particular good. What is the effect of this tax on the supply curve?

A. The supply curve shifts to the left

B. The supply curve shifts to the right

C. The supply curve remains unchanged

D. The supply curve becomes vertical

Question 7

The balance of payments accounts for a country can be represented by the following equation: $ BOP = X - M + F - I $. If the country's exports are $100 billion, imports are $80 billion, foreign aid is $20 billion, and investment is $30 billion, what is the balance of payments?

A. $10 billion surplus

B. $20 billion surplus

C. $30 billion deficit

D. $40 billion deficit

Question 8

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 10% and 20% respectively, what is the percentage change in output?

A. 10%

B. 20%

C. 30%

D. 40%

Question 9

A country's balance of payments is in equilibrium when its current account and capital account are balanced. Which of the following is a correct statement about the balance of payments?

A. The balance of payments is a statement of a country's international transactions over a specific period.

B. The balance of payments is a statement of a country's international transactions over a specific period, including current and capital account transactions.

C. The balance of payments is a statement of a country's international transactions over a specific period, including current account transactions only.

D. The balance of payments is a statement of a country's international transactions over a specific period, including capital account transactions only.

Question 10

A firm has a production function given by $ Q = 10K^0.5L^0.5 $. If the firm's capital is 100 units and labor is 200 units, what is the level of output?

A. 100 units

B. 200 units

C. 300 units

D. 400 units

Question 11

A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment and G is the government sp\ending. If the consumption is ₦100 billion, the investment is ₦50 billion and the government sp\ending is ₦20 billion, what is the GDP?

A. ₦170 billion

B. ₦180 billion

C. ₦190 billion

D. ₦200 billion

Question 12

The government of Nigeria has introduced a new policy to encourage the growth of the agricultural sector. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision that allows the government to purchase excess produce from farmers at a predetermined price. This provision is likely to lead to a situation where farmers produce more than the market demand, resulting in a surplus. What is the likely effect of this provision on the agricultural sector?

A. The provision will lead to an increase in the production of agricultural products, resulting in a surplus.

B. The provision will lead to a decrease in the production of agricultural products, resulting in a shortage.

C. The provision will have no effect on the production of agricultural products.

D. The provision will lead to an increase in the price of agricultural products.

Question 13

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, calculate the percentage change in quantity demanded when the price increases by 10%.

A. 5%

B. 10%

C. 20%

D. 30%

Question 14

A country's balance of payments is in surplus, meaning that it has a higher inflow of foreign exchange than outflow. What is the likely effect of this on the country's exchange rate?

A. The exchange rate will appreciate.

B. The exchange rate will depreciate.

C. The exchange rate will remain unchanged.

D. The exchange rate will fluctuate.

Question 15

The National Bureau of Statistics (NBS) releases the following data on Nigeria's GDP: $ GDP = 100 + 0.1t $, where ( t ) is the time in years. If the current year is 2020, what is the level of GDP?

A. 110

B. 120

C. 130

D. 140

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