POST UTME CHRISTOPHER UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's agricultural sector is characterized by a high degree of seasonality. What is the likely effect of this seasonality on the country's overall economic growth?
A. Increased economic growth
B. Decreased economic growth
C. No effect on economic growth
D. Increased inflation
Question 2
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). If the country's consumption is ₦100 billion, investment is ₦50 billion, government sp\ending is ₦75 billion, exports are ₦200 billion, and imports are ₦150 billion, what is the country's GDP?
A. ₦425 billion
B. ₦450 billion
C. ₦475 billion
D. ₦500 billion
Question 3
A central bank increases the money supply by 10% in a closed economy. U\sing the concept of the money multiplier, determine the percentage change in the money supply.
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A firm's demand function is given by Qd = 100 - 2P. If the price is ₦20, what is the quantity demanded?
A. 20
B. 30
C. 40
D. 50
Question 5
A firm's production function is given by \( Q = 10L^0.5K^0.5 \), where ( Q ) is the output, ( L ) is the labor and ( K ) is the capital. If the firm wants to produce 100 units of output, and the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the minimum \cost of production?
A. ₦5000
B. ₦7500
C. ₦10000
D. ₦12500
Question 6
A country is experiencing a trade deficit. Which of the following is a likely cause of this situation?
A. Importing more goods than exporting
B. Exporting more goods than importing
C. Trade balance is zero
D. Trade balance is positive
Question 7
The production function for a firm is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases labor from 4 units to 9 units and capital from 9 units to 16 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
A government is considering a tax on a particular good. The demand for the good is given by the equation \( Q_d = 100 - 2P \), where \( Q_d \) is the quantity demanded and ( P ) is the price. The supply of the good is given by the equation \( Q_s = 2P - 20 \), where \( Q_s \) is the quantity supplied. If the government imposes a tax of ₦10 on the good, what will be the new equilibrium price and quantity?
A. ₦20, 40 units
B. ₦30, 60 units
C. ₦40, 80 units
D. ₦50, 100 units
Question 9
Consider a country with a perfectly competitive market for a particular good. The demand for the good is given by the equation \( Q_d = 100 - 2P \), where \( Q_d \) is the quantity demanded and ( P ) is the price. The supply of the good is given by the equation \( Q_s = 2P - 20 \), where \( Q_s \) is the quantity supplied. If the government imposes a tax of ₦10 on the good, what will be the new equilibrium price and quantity?
A. ₦20, 40 units
B. ₦30, 60 units
C. ₦40, 80 units
D. ₦50, 100 units
Question 10
A country's balance of payments can be calculated u\sing the following formula: BOP = X - M + \( F - I \). If the country's exports are ₦200 billion, imports are ₦150 billion, foreign investment is ₦50 billion, and domestic investment is ₦75 billion, what is the country's balance of payments?
A. ₦25 billion
B. ₦50 billion
C. ₦75 billion
D. ₦100 billion
Question 11
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 1000, consumption is 300, investment is 200, government sp\ending is 150, exports are 250, and imports are 100, what is the value of X?
A. 300
B. 350
C. 400
D. 450
Question 12
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm increases price from $20 to $30, what is the percentage change in quantity demanded?
A. 10%
B. 20%
C. 30%
D. 40%
Question 13
A country's GNP is given by the equation GNP = GDP + (net factor income from abroad). If the country's GDP is 1000, net factor income from abroad is 50, what is the value of GNP?
A. 1050
B. 1100
C. 1150
D. 1200
Question 14
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $30 billion. U\sing the concept of net exports, calculate the country's GNP.
A. $130 billion
B. $120 billion
C. $110 billion
D. $100 billion
Question 15
A monopolist faces a demand curve with a price elasticity of -2. If the firm's marginal revenue is ₦100, what is the likely price elasticity of the demand curve?
A. -1
B. -2
C. -3
D. -4

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