POST UTME COAL CITY UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C(q) = 3q^2 + 5q + 2. If the firm produces 5 units of output, what is the average \cost?
A. ₦15
B. ₦20
C. ₦25
D. ₦30
Question 2
A country's price level is 100 and its nominal GDP is ₦10 trillion. If the country's inflation rate is 5%, calculate its real GDP.
A. ₦9.5 trillion
B. ₦9.75 trillion
C. ₦10 trillion
D. ₦10.25 trillion
Question 3
The supply curve for a product is given by the equation Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 0.8, what is the price at which the quantity supplied is 30?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 4
A firm's demand function is given by Q = 100 - 2P. If the price of the good increases by 10%, what is the new quantity demanded?
A. 90
B. 80
C. 70
D. 60
Question 5
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: (a) Open Market Operations (OMO), (b) Reserve Requirement, (c) Moral Suasion, and (d) all of the above. Which of the following is NOT a correct statement about the effect of OMO on inflation?
A. OMO increases the money supply, which leads to higher inflation.
B. OMO reduces the money supply, which leads to lower inflation.
C. OMO has no effect on inflation.
D. OMO increases interest rates, which leads to lower inflation.
Question 6
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 10 units of output, what is the total \cost of production?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 7
A country's trade balance is given by the equation TB(x) = 2x^2 + 5x + 1, where x is the number of units traded. If the country's trade deficit is 10 when x = 3, what is the value of the country's trade balance?
A. $20
B. $25
C. $30
D. $35
Question 8
A consumer has a utility function given by ( U(x,y) = 2x + 3y ), where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦2 and ₦3 respectively, what is the consumer's optimal bundle of goods?
A. (x,y) = (200, 100)
B. (x,y) = (150, 150)
C. (x,y) = (100, 200)
D. (x,y) = (50, 250)
Question 9
The government of Nigeria uses the following fiscal policy tools to control inflation: (a) Taxation, (b) Government Exp\enditure, (c) both of the above, and (d) neither of the above. Which of the following is NOT a correct statement about the effect of taxation on inflation?
A. Taxation reduces the money supply, which leads to lower inflation.
B. Taxation increases the money supply, which leads to higher inflation.
C. Taxation has no effect on inflation.
D. Taxation increases interest rates, which leads to lower inflation.
Question 10
A country's GDP is ₦10 trillion, its imports are ₦2 trillion and its exports are ₦3 trillion. Calculate the country's GDP at market price.
A. ₦11 trillion
B. ₦12 trillion
C. ₦13 trillion
D. ₦14 trillion
Question 11
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment, and G is the government sp\ending. If the consumption is ₦100, the investment is ₦50, and the government sp\ending is ₦20, what is the GDP?
A. ₦170
B. ₦180
C. ₦190
D. ₦200
Question 12
A firm's demand curve is given by the equation D(p) = 2p^2 + 5p + 1, where p is the price of the good. If the firm's output is 10 when p = 3, what is the value of the firm's demand?
A. 10
B. 15
C. 20
D. 25
Question 13
A monopolist faces a market demand curve given by Qd = 100 - 2P and a marginal \cost curve given by MC = 10 + 2Q. If the firm produces 50 units, what is the price it will charge?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
The demand for a commodity is given by \( Q = 100 - 2P \) and the supply is given by \( Q = 2P - 10 \). Find the equilibrium price and quantity.
A. P = 20, Q = 30
B. P = 30, Q = 20
C. P = 40, Q = 10
D. P = 50, Q = 0

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
Help others prepare! Share this practice hub: