POST UTME DELSU 2017 Economics | Objective

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Question 1
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 J-curve effect
Correct C. The Balance of Payments equilibrium
D. The Elasticity of Demand

Correct Answer: C

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Question 2
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
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 3
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
Correct C. Stagflation
D. Unemployment

Correct Answer: C

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Question 4
A firm's revenue function is given by R(Q) = 100Q - 2Q^2. The firm's marginal revenue is given by MR = 100 - 4Q. What is the firm's optimal quantity?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 5
A country's balance of payments is given by the following equation: BOP = X - M + \( F - I \). What is the meaning of the term \( F - I \)?
A. Net exports
B. Net imports
C. Net capital outflow
Correct D. Net capital inflow

Correct Answer: D

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Question 6
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's current labor and capital inputs are L = 4 and K = 9, respectively, what is the firm's current output?
A. 12
Correct B. 18
C. 24
D. 36

Correct Answer: B

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Question 7
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, and the prices of the two goods are $2 and $3, respectively, what is the consumer's optimal bundle of goods?
Correct A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)

Correct Answer: A

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Question 8
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
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 9
A country's GDP is given by 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 GDP is $100 billion, and the values of C, I, G, X, and M are $50 billion, $20 billion, $30 billion, $40 billion, and $20 billion, respectively, what is the country's trade balance?
Correct A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion

Correct Answer: A

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Question 10
A monopolist'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, and the firm's fixed \cost is $10, what is the firm's optimal price?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 11
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal benefit
Correct B. marginal \cost
C. average \cost
D. average revenue

Correct Answer: B

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Question 12
The National Income Accounting identity is given by
A. \[ Y = C + I + G \]
Correct B. \[ Y = C + I + G + \( X - M \) \]
C. \[ Y = C + I + G + M \]
D. \[ Y = C + I + G - \( X - M \) \]

Correct Answer: B

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Question 13
The money multiplier is given by
A. \[ \frac{1}{r + 1} \]
Correct B. \[ \frac{1}{r - 1} \]
C. \[ \frac{1}{r \times 1} \]
D. \[ \frac{1}{r - 2} \]

Correct Answer: B

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Question 14
The balance of payments identity is given by
A. \[ BOP = CA - FA \]
Correct B. \[ BOP = CA + FA \]
C. \[ BOP = CA - FA + CA \]
D. \[ BOP = CA + FA - CA \]

Correct Answer: B

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Question 15
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal benefit
Correct B. marginal \cost
C. average \cost
D. average revenue

Correct Answer: B

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Question 16
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the firm's marginal revenue is MR = 50 - 2Q, what is the optimal price and quantity?
Correct A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20

Correct Answer: A

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Question 17
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 ₦100 per hour, and the rental rate is ₦200 per unit, what is the optimal input combination?
Correct A. L = 100, K = 100
B. L = 50, K = 200
C. L = 200, K = 50
D. L = 25, K = 400

Correct Answer: A

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Question 18
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?
Correct A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion

Correct Answer: A

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Question 19
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?
Correct A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20

Correct Answer: A

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Question 20
A country's GNP is ₦120 billion, its imports are ₦25 billion, and its exports are ₦35 billion. What is the country's net foreign income?
Correct A. ₦15 billion
B. ₦25 billion
C. ₦35 billion
D. ₦45 billion

Correct Answer: A

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Question 21
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
Correct C. 200
D. 500

Correct Answer: C

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Question 22
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
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 23
A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labor and H is capital. If the firm wants to minimize its \cost while producing 100 units of output, how much labor and capital should it use?
Correct A. 50, 100
B. 100, 50
C. 200, 25
D. 500, 10

Correct Answer: A

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Question 24
A country's tax revenue is given by the following equation: TR = \( T - C \) + \( I - F \), where T is tax rate, C is consumption, I is investment and F is foreign aid. If the country's tax rate is 20%, consumption is $100 billion, investment is $50 billion and foreign aid is $20 billion, what is the tax revenue?
A. 10
B. 20
Correct C. 30
D. 40

Correct Answer: C

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Question 25
A firm's revenue function is given by R = 2PQ, where R is revenue, P is price and Q is quantity. If the firm wants to maximize its revenue while producing 100 units of output, what price should it charge?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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