POST UTME COAL CITY UNIVERSITY 2024 Economics | Objective

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Question 1
The Central Bank of Nigeria (CBN) has set an inflation target of 6% for the next year. If the current inflation rate is 8%, what is the required reduction in the money supply?
A. 10%
B. 12%
C. 15%
D. 18%
Question 2
A firm's revenue function is given by R(q) = 50q - 0.5q^2. If the firm produces 20 units, what is the total revenue?
A. 900
B. 1000
C. 1100
D. 1200
Question 3
A firm's production function is given by Q = 2L^2 + 5L. If the wage rate is ₦100 per hour, find the profit-maximizing level of labor.
A. L = 2 hours
B. L = 5 hours
C. L = 10 hours
D. L = 15 hours
Question 4
A country's government budget constraint is represented by the equation: B = T + I + G. What is the value of the budget deficit (BD) if the government sp\ends ₦500 million on interest payments and ₦300 million on goods and services?
A. ₦200 million
B. ₦300 million
C. ₦400 million
D. ₦500 million
Question 5
A central bank increases the money supply by 10%. What is the expected effect on the price level?
A. 10% increase
B. 5% increase
C. 0% change
D. 5% decrease
Question 6
A country's GDP is given by the following 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 consumption is $500 billion, investment is $200 billion, government sp\ending is $300 billion, exports are $100 billion, and imports are $120 billion, what is the country's GDP?
A. 1.38 trillion
B. 1.42 trillion
C. 1.46 trillion
D. 1.50 trillion
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and the firm's current output price is p = 30, calculate the firm's maximum profit.
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 8
A firm's production function is given by \( Q = 2K^0.5L^0.5 \). If the firm is currently producing 100 units of output with 10 units of capital and 20 units of labor, what is the marginal product of labor?
A. 5
B. 10
C. 15
D. 20
Question 9
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and the firm's current output price is p = 30, calculate the firm's maximum profit.
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 10
A firm's demand curve is represented by the equation: Q = 100 - 2P. What is the consumer surplus (CS) if the price is ₦20?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. P = 50, Q = 25
B. P = 75, Q = 12
C. P = 25, Q = 50
D. P = 12, Q = 75
Question 12
A country's balance of payments is given by BOP = X - M, where BOP is the balance of payments, X is exports, and M is imports. If the country's current exports and imports are ₦100 and ₦80 respectively, what is the total balance of payments?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
A perfectly competitive firm's supply curve is upward-sloping because of the law of increa\sing \costs. What is the primary reason for this upward-sloping supply curve?
A. The firm's marginal \cost increases as output increases.
B. The firm's average \cost decreases as output increases.
C. The firm's marginal revenue increases as output increases.
D. The firm's fixed \cost decreases as output increases.
Question 14
A monopolist faces a demand curve with the following equation: Q = 100 - 2P. What is the monopolist's marginal revenue (MR) function?
A. MR = 100 - 2Q
B. MR = 100 - Q
C. MR = 100 - 2P
D. MR = 100 + 2Q
Question 15
A consumer's utility function is given by U = 2x^0.5y^0.5, where x and y are the quantities of two goods. If the consumer's current consumption of good x is 4 units and the price of good y is ₦10, what is the marginal utility of good x?
A. 1
B. 2
C. 3
D. 4

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