POST UTME CHRISTOPHER UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's trade balance can be calculated u\sing the following formula: trade balance = X - M. If the country's exports are 500 and imports are 300, what is the trade balance?
A. 200
B. 250
C. 300
D. 350
Question 2
A government imposes a tax of ₦10 on every unit of a good. If the demand function for the good is given by Q = 100 - 2P and the supply function is given by Q = 2P - 10, find the equilibrium price and quantity.
A. P = 20, Q = 40
B. P = 25, Q = 50
C. P = 30, Q = 60
D. P = 35, Q = 70
Question 3
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm's average total \cost (ATC) curve is U-shaped, what is the likely effect on the firm's profit-maximizing output level if the demand curve shifts to the left?
A. The firm will increase its profit-maximizing output level.
B. The firm will decrease its profit-maximizing output level.
C. The firm's profit-maximizing output level will remain unchanged.
D. The firm will experience a decrease in profit-maximizing output level, but the exact change cannot be determined.
Question 4
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 the firm's labor and capital inputs increase by 10% and 20%, respectively, what is the likely effect on the firm's output level?
A. The firm's output level will increase by 10%.
B. The firm's output level will increase by 20%.
C. The firm's output level will increase by 30%.
D. The firm's output level will increase by 40%.
Question 5
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the product is given by the equation Qs = 2P - 100, what is the equilibrium quantity?
A. 10
B. 20
C. 30
D. 40
Question 6
A country has a GDP of ₦10 trillion and a population of 200 million. If the GDP per capita is ₦50,000, what is the percentage change in GDP per capita when the GDP increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 7
A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm produces 20 units, what is the total revenue?
A. ₦1,600
B. ₦2,000
C. ₦2,400
D. ₦2,800
Question 8
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the product is given by the equation Qs = 2P - 100, what is the equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
A government imposes a tax on a firm's output, cau\sing the firm's supply curve to shift to the left. If the firm's demand curve is inelastic, what is the likely effect on the firm's price and quantity sold?
A. The firm's price will increase, and its quantity sold will decrease.
B. The firm's price will decrease, and its quantity sold will increase.
C. The firm's price will remain unchanged, and its quantity sold will decrease.
D. The firm's price will increase, and its quantity sold will remain unchanged.
Question 10
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, investment is 50, government sp\ending is 200, exports are 300, and imports are 200, what is the country's GDP?
A. 550
B. 600
C. 650
D. 700
Question 11
A firm has a production function given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the price of labor is ₦100 and the price of capital is ₦200, what is the marginal product of labor?
A. 2
B. 4
C. 6
D. 8
Question 12
A firm is considering investing in a new project with the following cash flows: Year 0: -100, Year 1: 120, Year 2: 150, Year 3: 180. What is the net present value of the project if the discount rate is 10%?
A. 50
B. 60
C. 70
D. 80
Question 13
A country has a GDP of ₦10 trillion and a GNP of ₦12 trillion. What is the net factor income from abroad?
A. ₦2 trillion
B. ₦4 trillion
C. ₦6 trillion
D. ₦8 trillion
Question 14
A firm has a production function Q = 100K^0.5L^0.5. If the firm increases its labor from 100 to 121 units, and holds capital cons\tant at 100 units, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
A firm has a \cost function given by C = 100 + 2L + 3K, where C is the \cost, L is the labor and K is the capital. If the price of labor is ₦100 and the price of capital is ₦200, what is the marginal \cost of labor?
A. 200
B. 300
C. 400
D. 500

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