POST UTME AL-HIKMAH UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government imposes a tax on a particular good. What is the effect of this tax on the supply curve of the good?
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 shifts downward.
Question 2
The Nigerian economy has a GDP of ₦10 trillion and a population of 200 million people. Calculate the GDP per capita.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 3
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, calculate the total revenue and the marginal revenue product of labor and capital.
A. TR = 50, MRP_L = 10, MRP_K = 5
B. TR = 60, MRP_L = 12, MRP_K = 6
C. TR = 70, MRP_L = 15, MRP_K = 8
D. TR = 80, MRP_L = 18, MRP_K = 10
Question 4
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget constraint is 10x + 20y = 100, and the price of good x is ₦10, what is the consumer's optimal bundle?
A. x = 5, y = 2
B. x = 2, y = 5
C. x = 10, y = 0
D. x = 0, y = 10
Question 5
A firm's \cost function is given by C(q) = 2q^2 + 5q. What is the firm's average \cost function?
A. AC(q) = 2q + 5
B. AC(q) = 4q + 5
C. AC(q) = 2q^2 + 5
D. AC(q) = 4q^2 + 5
Question 6
A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. However, this equilibrium may not necessarily reflect the country's overall economic performance. What is the name of the economic concept that explains this phenomenon?
A. Balance of Trade
B. Balance of Payments
C. Current Account Deficit
D. Terms of Trade
Question 7
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are $100 billion, its imports are $80 billion, its foreign investment is $20 billion, and its domestic investment is $30 billion, what is the country's balance of payments?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 8
A country's GDP at market price is ₦1000 billion. If the government's subsidies amount to ₦50 billion and the depreciation of capital is ₦20 billion, what is the country's GDP at factor \cost?
A. ₦1030 billion
B. ₦1050 billion
C. ₦1070 billion
D. ₦1090 billion
Question 9
A country's government imposes a 10% tax on all imports. If the price of a good is $100 and the tax is $15, what is the consumer's surplus?
A. $15
B. $20
C. $25
D. $30
Question 10
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity sold. If the firm sells 20 units, what is the marginal revenue?
A. ₦100
B. ₦120
C. ₦140
D. ₦160
Question 11
A firm faces a downward-sloping demand curve for its product. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain cons\tant
D. Total revenue will increase at first and then decrease
Question 12
A firm's \cost function is given by C(q) = 2q^2 + 5q. What is the marginal \cost function?
A. ( C'(q) = 4q + 5 )
B. ( C'(q) = 2q + 5 )
C. ( C'(q) = 4q - 5 )
D. ( C'(q) = 2q - 5 )
Question 13
A firm is faced with a production function given by Q = 100L^0.4K^0.3, where Q is output, L is labor, and K is capital. If the firm is currently u\sing 100 units of labor and 200 units of capital, calculate the marginal product of labor (MPL) and marginal product of capital (MPK).
A. MPL = 0.4, MPK = 0.3
B. MPL = 0.3, MPK = 0.4
C. MPL = 0.4, MPK = 0.6
D. MPL = 0.6, MPK = 0.4
Question 14
A country's balance of payments is in equilibrium when the current account is equal to the capital account. What is the implication of this equilibrium on the country's exchange rate?
A. The exchange rate will appreciate.
B. The exchange rate will depreciate.
C. The exchange rate will remain cons\tant.
D. The exchange rate will fluctuate.
Question 15
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape on the consumer's utility function?
A. The consumer's utility function is linear.
B. The consumer's utility function is concave.
C. The consumer's utility function is convex.
D. The consumer's utility function is homogeneous of degree one.

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: