POST UTME DELSU 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase output by 20% while keeping labor cons\tant at 100 units, how much should it increase its capital?
A. 50
B. 100
C. 200
D. 500
Question 2
A country's agricultural sector is characterized by a high degree of price rigidity. This can lead to which of the following?
A. Inflation
B. Deflation
C. Stagflation
D. Unemployment
Question 3
The diagram below shows the supply and demand curves for a commodity. What is the equilibrium price and quantity of the commodity?
A. Price = ₦100, Quantity = 100 units
B. Price = ₦150, Quantity = 150 units
C. Price = ₦200, Quantity = 200 units
D. Price = ₦250, Quantity = 250 units
Question 4
The diagram below shows the production possibilities frontier (PPF) for a country. What is the opportunity \cost of producing 100 units of good X?
A. 10 units of good Y
B. 20 units of good Y
C. 30 units of good Y
D. 40 units of good Y
Question 5
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is exports, M is imports, F is foreign investment and I is domestic investment. If the country's exports are $100 billion, imports are $80 billion, foreign investment is $20 billion and domestic investment is $30 billion, what is the balance of payments?
A. 10
B. 20
C. 30
D. 40
Question 6
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. What is the effect of an increase in the price of a good on the country's GDP?
A. The GDP increases.
B. The GDP decreases.
C. The GDP remains unchanged.
D. The GDP increases by the amount of the price increase.
Question 7
The National Bureau of Statistics (NBS) reported that the Gross Domestic Product (GDP) of Nigeria grew by 3.5% in the first quarter of the year. What is the implication of this growth rate for the country's economic development?
A. The country's economic development is improving.
B. The country's economic development is stagnating.
C. The country's economic development is deteriorating.
D. The country's economic development is unaffected.
Question 8
The money multiplier is given by
A. \[ \frac{1}{r + 1} \]
B. \[ \frac{1}{r - 1} \]
C. \[ \frac{1}{r \times 1} \]
D. \[ \frac{1}{r - 2} \]
Question 9
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the monopolist's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 10
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is the country's net foreign income?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 11
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal benefit
B. marginal \cost
C. average \cost
D. average revenue
Question 12
A firm's production function is given by the equation Q = 2L + 3K, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the firm has 10 labor hours and 5 units of capital, what is the quantity produced?
A. 20 units
B. 25 units
C. 30 units
D. 35 units
Question 13
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What is the effect of the tax on the equilibrium price and quantity of the good?
A. The equilibrium price increases and the equilibrium quantity decreases.
B. The equilibrium price decreases and the equilibrium quantity increases.
C. The equilibrium price remains unchanged and the equilibrium quantity decreases.
D. The equilibrium price increases and the equilibrium quantity remains unchanged.
Question 14
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue is MR = 50 - 2Q, what is the optimal price and quantity?
A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20
Question 15
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is MR = 200 - 2Q, what is the firm's optimal price?
A. 20
B. 30
C. 40
D. 50

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