POST UTME DELSU 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is ₦100 billion and its government exp\enditure is ₦20 billion. If the country's savings rate is 10%, what is the country's investment?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 2
A country is experiencing a recession and the government decides to implement a fiscal policy to stimulate the economy. Which of the following fiscal policies would be most effective in stimulating the economy?
A. Increase government sp\ending
B. Reduce taxes
C. Increase interest rates
D. Reduce government sp\ending
Question 3
A firm is producing a good with a total \cost of TC = 1000 + 20Q + 0.5Q^2. If the firm's marginal revenue is 15, what is the quantity produced?
A. 20
B. 30
C. 40
D. 50
Question 4
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production function for good A is given by \( Q_A = 10L^0.5K^0.5 \) and for good B is given by \( Q_B = 5L^0.2K^0.8 \). If the firm has 100 units of labor and 50 units of capital, how many units of good A and good B should it produce to maximize profit?
A. Good A: 50 units, Good B: 25 units
B. Good A: 75 units, Good B: 10 units
C. Good A: 25 units, Good B: 50 units
D. Good A: 10 units, Good B: 75 units
Question 5
A monopolist is producing a good with a demand curve given by P = 100 - 2Q. If the firm's marginal \cost is 10, what is the quantity produced?
A. 20
B. 30
C. 40
D. 50
Question 6
Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects the average revenue (AR) curve at a point where the ATC curve is downward sloping, what can be concluded about the firm's production level?
A. The firm is producing at a level where marginal \cost (MC) equals marginal revenue (MR)
B. The firm is producing at a level where ATC is equal to AR
C. The firm is producing at a level where MC is greater than MR
D. The firm is producing at a level where MC is less than MR
Question 7
A farmer is considering whether to plant maize or sorghum on his farm. The price of maize is ₦100 per bag and the price of sorghum is ₦120 per bag. If the farmer's opportunity \cost of planting maize is ₦80 per bag and the opportunity \cost of planting sorghum is ₦60 per bag, which crop should the farmer plant?
A. Maize
B. Sorghum
C. Either crop
D. Neither crop
Question 8
A firm is producing a good with a production function of Q = 2L + 3K, where L is labor and K is capital. If the price of labor is $10 per hour and the price of capital is $20 per hour, and the firm is currently producing 100 units of the good, what is the opportunity \cost of producing one more unit of the good?
A. The opportunity \cost of producing one more unit of the good is $20.
B. The opportunity \cost of producing one more unit of the good is $30.
C. The opportunity \cost of producing one more unit of the good is $40.
D. The opportunity \cost of producing one more unit of the good is $50.
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor (L) is 4 units and capital (K) is 9 units, what is the firm's current output?
A. 12
B. 15
C. 18
D. 20
Question 10
The government of a country has decided to implement a policy of reducing the income tax rate from 25% to 20% to boost economic growth. However, the reduction in tax rate will lead to a decrease in government revenue. U\sing the concept of opportunity \cost, explain why the government's decision to reduce the income tax rate is a good idea.
A. The reduction in tax rate will lead to an increase in consumer sp\ending, which will boost economic growth.
B. The reduction in tax rate will lead to a decrease in government revenue, which will reduce the opportunity \cost of the policy.
C. The reduction in tax rate will lead to an increase in investment, which will boost economic growth.
D. The reduction in tax rate will lead to a decrease in economic growth, which will increase the opportunity \cost of the policy.
Question 11
A firm is producing a good with a production function of Q = 2L + 3K, where L is labor and K is capital. If the price of labor is $10 per hour and the price of capital is $20 per hour, and the firm is currently producing 100 units of the good, what is the opportunity \cost of producing one more unit of the good?
A. The opportunity \cost of producing one more unit of the good is $20.
B. The opportunity \cost of producing one more unit of the good is $30.
C. The opportunity \cost of producing one more unit of the good is $40.
D. The opportunity \cost of producing one more unit of the good is $50.
Question 12
A government budget is given by the equation \( B = 1000 + 0.2Y \), where B is the budget and Y is the national income. If the national income is ₦5000, find the government's budget.
A. ₦1200
B. ₦1000
C. ₦1500
D. ₦2000
Question 13
A firm is considering two different production methods to produce a certain good. Method A requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit. Method B requires an initial investment of ₦150,000 and has a variable \cost of ₦30 per unit. If the firm produces 10,000 units of the good, which method is more profitable?
A. Method A
B. Method B
C. Both methods are equally profitable
D. Neither method is profitable
Question 14
A consumer is faced with the following budget constraint: 2x + 3y = 100, where x is the number of units of good X and y is the number of units of good Y. If the price of good X is $5 per unit and the price of good Y is $10 per unit, and the consumer's income is $100, what is the opportunity \cost of consuming one more unit of good Y?
A. The opportunity \cost of consuming one more unit of good Y is $5.
B. The opportunity \cost of consuming one more unit of good Y is $10.
C. The opportunity \cost of consuming one more unit of good Y is $15.
D. The opportunity \cost of consuming one more unit of good Y is $20.
Question 15
A country's balance of payments is given by the following equation: \( BOP = X - M \), where ( X ) is the value of exports and ( M ) is the value of imports. If the value of exports is $100 million and the value of imports is $120 million, what is the balance of payments?
A. $20 million surplus
B. $20 million deficit
C. $10 million surplus
D. $10 million deficit

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