POST UTME CALEB UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Agricultural development is a key component of economic development in many countries. Which of the following is a benefit of agricultural development?
A. Increased food security
B. Increased income for farmers
C. Increased employment opportunities
D. All of the above
Question 2
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 3
A country's imports and exports are given by the following equations: I = 100 + 2Y and X = 50 + 0.5Y, where Y is the country's GDP. If the country's GDP is ₦500 billion, what is the balance of trade?
A. ₦150 billion
B. ₦200 billion
C. ₦250 billion
D. ₦300 billion
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 5
The concept of scarcity in economics implies that the wants and needs of individuals are unlimited, while the resources available to satisfy these wants and needs are limited. Which of the following is a consequence of scarcity?
A. Inefficient allocation of resources
B. Increased production
C. Decreased consumption
D. No impact on economic activity
Question 6
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?
A. (10, 5)
B. (15, 3)
C. (20, 2)
D. (25, 1)
Question 7
A monopolistically competitive firm faces a demand curve that is downward sloping. If the firm increases its output, what happens to its price?
A. The price increases.
B. The price decreases.
C. The price remains the same.
D. The price becomes perfectly inelastic.
Question 8
The concept of elasticity of demand is used to measure the responsiveness of the quantity demanded of a good or service to changes in its price. Which of the following is a type of elasticity of demand?
A. Price elasticity of demand
B. Income elasticity of demand
C. Cross-price elasticity of demand
D. All of the above
Question 9
A consumer's demand curve for a good is given by Q = 100 - 2P. If the consumer's income is ₦100 and the price of the good is ₦50, what is the consumer's optimal quantity?
A. 20
B. 30
C. 40
D. 50
Question 10
Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects the average revenue (AR) curve at a point where the ATC is decrea\sing, what can be concluded about the firm's production level?
A. The firm is producing at a level where it is minimizing its \costs.
B. The firm is producing at a level where it is maximizing its profits.
C. The firm is producing at a level where it is minimizing its \costs and maximizing its profits.
D. The firm is producing at a level where it is maximizing its \costs.
Question 11
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm increases labor from 100 to 121 units, and capital from 100 to 121 units, by how much will output increase?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 12
A firm's production function is given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital and L is labor. If the firm's capital and labor 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 balance of payments (BOP) accounts are used to record all economic transactions between residents and non-residents. Which of the following is a component of the BOP?
A. Current account
B. Capital account
C. Financial account
D. All of the above
Question 14
A firm is considering two investment projects, A and B. Project A has a net present value (NPV) of ₦100,000 and a payback period of 2 years. Project B has an NPV of ₦120,000 and a payback period of 3 years. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally good
D. Neither project is good
Question 15
A country's GDP is ₦10 trillion, and its GNP is ₦11 trillion. What is the country's net factor income from abroad?
A. ₦1 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion

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