POST UTME CHRISTOPHER UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the wage rate is ₦50 per hour, what is the optimal level of capital?
Question 2
The balance of payments (BOP) accounts for a country are given by: Current Account = 100, Capital Account = 50, and Financial Account = 20. What is the overall balance of payments position?
Question 3
A firm is operating in a perfectly competitive market with a demand curve of Q = 100 - 2P and a supply curve of Q = 20 + 3P. If the price of the good is $10, what is the firm's profit-maximizing quantity?
Question 4
A firm is considering two investment projects. Project A has a net present value (NPV) of ₦1,500,000 and a payback period of 5 years. Project B has an NPV of ₦1,200,000 and a payback period of 4 years. Assuming that the \cost of capital is 10% per annum, which project should the firm choose?
Question 5
A country's inflation rate is given by the following equation: inflation rate = \( C - P \) / P, where C is the change in the money supply and P is the price level. If the country's money supply increases by ₦100 billion and the price level is ₦500 billion, calculate the country's inflation rate.
Question 6
A country's GDP at market price is ₦10,000,000,000. The implicit deflator is 120. If the country's GDP at factor \cost is ₦8,000,000,000, what is the net indirect tax?
Question 7
A firm's average \cost curve intersects its marginal \cost curve at point E, where the average \cost is ₦120. If the firm's total fixed \cost is ₦10,000 and its marginal \cost is ₦50 at point E, calculate the firm's total output at point E.
Question 8
A country is experiencing a trade deficit due to a decrease in exports and an increase in imports. If the country's GDP is $100 billion and the trade deficit is $20 billion, what is the opportunity \cost of the trade deficit?
Question 9
A firm is producing a good with a production function of Q = 2L^0.5K^0.5. If the price of labor is $10 per hour and the price of capital is $20 per hour, and the firm is currently producing 100 units of output, what is the opportunity \cost of producing one more unit of output?
Question 10
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 price elasticity of demand is cons\tant and equal to 2, find the price at which the quantity demanded is 60 units.
Question 11
The Central Bank of Nigeria (CBN) has set a monetary policy target of 10% inflation rate. If the current inflation rate is 8%, and the CBN expects the inflation rate to increase by 2% in the next quarter, what is the expected inflation rate in the next quarter?
Question 12
A country's money supply is ₦500,000,000,000. If the country's velocity of money is 5, calculate the country's nominal GDP.
Question 13
A country's money supply is given by M = 1000 + 0.5Y, where M is money supply and Y is GDP. If the country's GDP increases by 10%, what is the percentage change in money supply?
Question 14
A firm's demand curve for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply curve is given by Qs = 2P - 50. Find the price elasticity of demand at a price of ₦75.
Question 15
A country is experiencing a balance of payments crisis due to a large trade deficit. If the country's trade deficit is $20 billion and the country's foreign exchange reserves are $10 billion, what is the opportunity \cost of the trade deficit?
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.
Unlock Full Access
Available for Android & Windows