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POST UTME AL-HIKMAH UNIVERSITY 2023 Economics | Objective

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Question 1

A firm's demand curve for a product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue is 50, what is the price elasticity of demand?

Correct A. -0.5

B. 0.5

C. 1

D. 2

Correct Answer: A

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Question 2

A country's GDP is 100 billion naira, and its GNP is 120 billion naira. What is the net factor income from abroad?

A. 10 billion naira

Correct B. 20 billion naira

C. 30 billion naira

D. 40 billion naira

Correct Answer: B

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Question 3

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

Correct A. x = 10, y = 5

B. x = 5, y = 10

C. x = 15, y = 3

D. x = 3, y = 15

Correct Answer: A

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Question 4

A firm's supply curve is given by the equation Q = 2P - 10, where Q is the quantity supplied and P is the price. If the firm's marginal \cost is 5, what is the price at which the firm will supply 20 units?

A. 10

Correct B. 15

C. 20

D. 25

Correct Answer: B

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Question 5

A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are 100 billion naira and its imports are 80 billion naira, what is the country's balance of payments?

Correct A. 10 billion naira

B. 20 billion naira

C. 30 billion naira

D. 40 billion naira

Correct Answer: A

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Question 6

Calculate the value of the definite integral $ int_{0}^{2} \( 2x^2 + 3x - 1 \ $ dx ) u\sing the fundamental theorem of calculus.

A. 4

B. 6

Correct C. 8

D. 10

Correct Answer: C

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Question 7

A firm's demand function is given by $ Q = 100 - 2P $. If the price elasticity of demand is 0.5, find the value of the cross-price elasticity of demand.

Correct A. -0.5

B. 0.5

C. 1

D. 2

Correct Answer: A

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Question 8

A country's balance of payments is given by the following equation: $ BOP = X - M $, where ( X ) is the value of exports and ( M ) is the value of imports. If the value of exports is ₦500 billion and the value of imports is ₦600 billion, what is the balance of payments?

Correct A. ₦-100 billion

B. ₦100 billion

C. ₦500 billion

D. ₦600 billion

Correct Answer: A

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Question 9

A firm's supply function is given by $ Q = 50 + 2P $. If the price elasticity of supply is 0.2, find the value of the cross-price elasticity of supply.

A. -0.4

Correct B. 0.2

C. 0.4

D. 0.6

Correct Answer: B

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Question 10

A consumer's utility function is given by $ U = 2x + 3y $, where ( x ) and ( y ) are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦2 and ₦3 respectively, find the consumer's optimal consumption bundle.

Correct A. (200, 300)

B. (300, 200)

C. (400, 100)

D. (100, 400)

Correct Answer: A

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Question 11

The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy involves a 10% tax on all agricultural products sold in the country. If the total revenue from agricultural products before the tax was ₦120 billion, what is the new revenue after the tax is imposed?

A. ₦132 billion

B. ₦140 billion

Correct C. ₦148 billion

D. ₦156 billion

Correct Answer: C

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Question 12

A firm is producing a good with a demand function Q = 100 - 2P and a \cost function C = 2Q^2 + 100Q. Find the profit-maximizing price and quantity.

A. P = 20, Q = 40

B. P = 30, Q = 50

Correct C. P = 40, Q = 60

D. P = 50, Q = 70

Correct Answer: C

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Question 13

The government of Nigeria has set a target of increa\sing the country's agricultural production by 20% within the next 5 years. If the current production level is 10 million metric tons, what is the new production level after 5 years?

A. 12 million metric tons

B. 13 million metric tons

Correct C. 14 million metric tons

D. 15 million metric tons

Correct Answer: C

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Question 14

A country has a trade balance of $100 million and a current account balance of $200 million. What is the capital account balance?

A. $300 million

Correct B. $400 million

C. $500 million

D. $600 million

Correct Answer: B

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Question 15

The government of Nigeria has introduced a new policy aimed at increa\sing the country's industrial production. The policy involves a 10% subsidy on all raw materials used in the production of goods. If the total \cost of raw materials before the subsidy was ₦500 million, what is the new \cost after the subsidy is imposed?

Correct A. ₦450 million

B. ₦500 million

C. ₦550 million

D. ₦600 million

Correct Answer: A

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Question 16

The production function for a firm is given by Q = 100K^$ 1/2 $L^$ 1/2 $, where Q is the output, K is the capital and L is the labor. If the firm wants to increase its output by 20% while keeping the capital cons\tant, what percentage increase in labor is required?

A. 10%

B. 20%

C. 30%

Correct D. 44%

Correct Answer: D

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Question 17

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function given by C = 20 + 5L. If the firm produces 50 units of output, what is the profit-maximizing price?

A. 5

Correct B. 10

C. 15

D. 20

Correct Answer: B

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Question 18

A consumer has the following utility function: U = 2x + 3y. The prices of x and y are $2 and $3 respectively. If the consumer has a budget of $10, what is the optimal bundle of x and y?

A. x = 1, y = 3

Correct B. x = 2, y = 2

C. x = 3, y = 1

D. x = 4, y = 0

Correct Answer: B

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Question 19

A government imposes a tax of $1 on every unit of a good. The supply curve of the good is given by Q = 100 - 2P. If the demand curve is given by Q = 100 - P, what is the new equilibrium price?

A. 40

B. 45

Correct C. 50

D. 55

Correct Answer: C

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Question 20

A firm has a production function given by Q = 100K^$ 1/2 $L^$ 1/2 $, where Q is the output, K is the capital and L is the labor. If the firm wants to increase its output by 20% while keeping the capital cons\tant, what percentage increase in labor is required?

A. 10%

B. 20%

C. 30%

Correct D. 44%

Correct Answer: D

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Question 21

Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average annual income is ₦50,000, what is the implied GDP per capita?

A. ₦25,000

Correct B. ₦50,000

C. ₦100,000

D. ₦200,000

Correct Answer: B

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Question 22

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains cons\tant, what is the percentage change in output?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 23

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 is ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, what is the optimal bundle of goods?

A. (10, 10)

B. (20, 5)

Correct C. (15, 7.5)

D. (5, 15)

Correct Answer: C

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Question 24

A country's balance of payments is given by the following equation: BOP = X - M, where X is exports and M is imports. If exports increase by 20% and imports remain cons\tant, what is the percentage change in the balance of payments?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 25

A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price increases by 20%, what is the percentage change in quantity demanded?

A. -10%

Correct B. -20%

C. -30%

D. -40%

Correct Answer: B

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