POST UTME COVENANT UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP grows at a rate of 5% per annum, while its population grows at a rate of 2% per annum. What is the growth rate of per capita GDP?
A. 3%
B. 4%
C. 5%
D. 6%
Question 2
The elasticity of demand for a commodity is measured by the percentage change in the quantity demanded in response to a 1% change in the price. If the price elasticity of demand for a commodity is 0.5, what is the percentage change in the quantity demanded if the price increases by 10%?
A. 5%
B. 10%
C. 20%
D. 50%
Question 3
A firm is producing a good with a production function given by Q = 2L^0.5K^0.5. If the firm's techno\logy is characterized by cons\tant returns to scale, what is the firm's \cost function?
A. C(L, K) = 2L^0.5K^0.5
B. C(L, K) = 2L^0.5 + 2K^0.5
C. C(L, K) = 2L + 2K
D. C(L, K) = 2L^0.5K
Question 4
A consumer's indifference curve is steeper than another consumer's indifference curve. What can be inferred about the two consumers?
A. The first consumer has a higher marginal rate of substitution than the second consumer.
B. The first consumer has a lower marginal rate of substitution than the second consumer.
C. The first consumer has a higher income than the second consumer.
D. The first consumer has a lower income than the second consumer.
Question 5
The GDP of a country is ₦100 billion. The GNP is ₦120 billion. What is the net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 6
A consumer has a utility function given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 100, and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 15, y = 10
C. x = 20, y = 15
D. x = 25, y = 20
Question 7
A firm has a production function Q = 2L^0.5K^0.5. If the firm's labor and capital are 10 units each, what is the output?
A. 20 units
B. 40 units
C. 60 units
D. 80 units
Question 8
A consumer's indifference curve is given by the utility function U(x, y) = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 10
B. x = 20, y = 5
C. x = 5, y = 20
D. x = 15, y = 15
Question 9
A firm is producing a good with a production function Q = 2L^0.5 K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm is currently producing 100 units of output with 10 units of labor and 20 units of capital, what is the marginal product of labor?
A. 5
B. 10
C. 15
D. 20
Question 10
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds a certain threshold. What is the name of this threshold?
A. The Marshall-Lerner condition
B. The Balassa-Samuelson effect
C. The J-curve effect
D. The Marshall-Lerner threshold
Question 11
The demand for a commodity 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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 10%
C. 5%
D. 15%
Question 12
A bank has a reserve requirement of 15%. If the bank's deposits are ₦120 million, how much must it keep in reserve?
A. ₦18 million
B. ₦20 million
C. ₦22 million
D. ₦24 million
Question 13
A consumer's indifference curve is given by U = 2X + 3Y. If the budget constraint is 2X + 3Y = 12, find the optimal consumption bundle.
A. X = 2, Y = 4
B. X = 4, Y = 2
C. X = 6, Y = 0
D. X = 0, Y = 4
Question 14
A country imposes a tariff of 20% on imported goods. If the world price of the good is $100, what is the domestic price of the good?
A. $120
B. $110
C. $100
D. $90
Question 15
A consumer has a utility function given by U = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 12. What is the consumer's optimal bundle?
A. (4, 0)
B. (2, 4)
C. (0, 4)
D. (4, 4)

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