POST UTME EKSU 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP at market price is ₦1,500 billion, while its GDP at factor \cost is ₦1,400 billion. What is the value of net indirect taxes?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 2
A government budget is given by the equation B = T + I, where B is the budget, T is the tax revenue, and I is the government exp\enditure. If the tax revenue is ₦500 billion and the government exp\enditure is ₦700 billion, what is the budget deficit?
A. ₦200 billion
B. ₦300 billion
C. ₦400 billion
D. ₦500 billion
Question 3
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be allocated to the production of another good. This is an example of the law of?
A. Opportunity Cost
B. Diminishing Marginal Utility
C. Law of Increa\sing Opportunity Cost
D. Law of Diminishing Returns
Question 4
A firm produces two goods, A and B. The production of good A requires 2 units of labor and 3 units of capital, while the production of good B requires 3 units of labor and 2 units of capital. If the firm has 12 units of labor and 15 units of capital, how many units of good A and good B can it produce?
A. 10 units of A and 8 units of B
B. 12 units of A and 6 units of B
C. 15 units of A and 4 units of B
D. 18 units of A and 2 units of B
Question 5
A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. What is the net factor income from abroad?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor (MPL) at this point?
A. 1.5
B. 2.5
C. 3.5
D. 4.5
Question 7
A firm's demand curve 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 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 8
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 9
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy requires farmers to pay a 10% tax on their annual income. If a farmer earns ₦1,000,000 per year, how much tax will they pay?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 10
Suppose a monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the monopolist produces 20 units, what is the profit-maximizing price?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 11
A government is considering implementing a tax on a particular good to reduce its consumption. U\sing the concept of tax incidence, explain who bears the burden of the tax.
A. The consumer bears the burden of the tax.
B. The producer bears the burden of the tax.
C. Both the consumer and the producer bear the burden of the tax.
D. Neither the consumer nor the producer bears the burden of the tax.
Question 12
A country's balance of payments is in equilibrium when its current account is equal to its capital account. Explain why this is the case.
A. The current account and capital account are equal because the country's imports and exports are balanced, and the country's foreign investment and foreign borrowing are also balanced.
B. The current account and capital account are equal because the country's GDP is equal to its national income, and the country's savings are equal to its investment.
C. The current account and capital account are equal because the country's trade deficit is equal to its trade surplus, and the country's foreign investment is equal to its foreign borrowing.
D. The current account and capital account are equal because the country's imports are equal to its exports, and the country's foreign investment is equal to its foreign borrowing.
Question 13
A firm's demand curve is given by Qd = 100 - 2P, and the supply curve is given by Qs = 2P - 100. If the equilibrium price is P = 50, what is the equilibrium quantity?
A. 100
B. 150
C. 200
D. 250
Question 14
Agricultural industrialization in Nigeria has been hindered by the lack of infrastructure, including roads, storage facilities, and proces\sing equipment. Which of the following is a consequence of this lack of infrastructure?
A. Increased production \costs
B. Decreased agricultural productivity
C. Reduced food availability
D. Increased food prices
Question 15
A central bank increases the reserve requirement from 10% to 15%. What is the effect on the money supply?
A. Increases by 20%
B. Increases by 15%
C. Decreases by 10%
D. Decreases by 20%

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