POST UTME CHRISTOPHER UNIVERSITY 2017 Economics | Objective

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Question 1
A country's GDP is given by GNP - \( imports - exports \). If the country's GNP is ₦100 billion, imports are ₦20 billion, and exports are ₦15 billion, what is the country's GDP?
A. ₦85 billion
B. ₦90 billion
C. ₦95 billion
D. ₦100 billion
Question 2
A firm's demand function is given by Q = 100 - 2P and its \cost function is C(Q) = 2Q^2 + 10Q. If the firm's current price is P = 20, what is the elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 3
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 10 units of output, what is its total \cost?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital are 100 and 200 respectively, what is the firm's output?
A. 100
B. 200
C. 300
D. 400
Question 5
The supply curve of a firm is upward-sloping because
A. the firm is a price-taker
B. the firm is a price-maker
C. the firm's production \costs are increa\sing
D. the firm's production \costs are decrea\sing
Question 6
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue is MR = 200 - 4Q, what is the firm's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 7
A country's inflation rate is given by the following equation: inflation rate = \( C + I + G + X - M \) / Y. If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, imports are ₦500 billion, and GDP is ₦2 trillion, what is the country's inflation rate?
A. 5%
B. 10%
C. 15%
D. 20%
Question 8
A central bank increases the money supply by buying government bonds from commercial banks. What is the effect on the money supply?
A. Decrease
B. Increase
C. No change
D. Dep\end on the interest rate
Question 9
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $30 billion, exports are $40 billion, and imports are $20 billion, what is the value of the marginal propensity to consume (MPC)?
A. 0.2
B. 0.3
C. 0.4
D. 0.5
Question 10
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2, where C is total \cost and Q is output. If the firm produces 20 units of output, what is the total \cost?
A. 250
B. 300
C. 350
D. 400
Question 11
The opportunity \cost of producing one more unit of a good is equal to the
A. marginal product of labor
B. marginal product of capital
C. marginal rate of technical substitution
D. marginal rate of transformation
Question 12
The government of a country imposes a tax on imported goods to raise revenue. The tax is levied at the rate of 10% on the value of the goods. If the value of the goods is ₦100,000, what is the amount of tax paid?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 13
A government imposes a tax of ₦10 per unit on a firm's output. If the firm's supply function is given by Q = 100 - 2P and the tax is passed on to consumers, what is the new equilibrium price and quantity?
A. P = 30, Q = 40
B. P = 40, Q = 30
C. P = 50, Q = 20
D. P = 20, Q = 50
Question 14
A firm's production function is given by Q = 3L^0.5K^0.5. If the firm's current input prices are w = ₦150 and r = ₦300, and it currently employs 8 units of labor and 16 units of capital, calculate the firm's current total \cost.
A. ₦2,400
B. ₦2,800
C. ₦3,200
D. ₦3,600
Question 15
A perfectly competitive firm will produce at the point where its marginal \cost (MC) curve intersects the
A. average revenue (AR) curve
B. marginal revenue (MR) curve
C. marginal \cost (MC) curve
D. average \cost (AC) curve

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