POST UTME EKSU 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A central bank uses an open market operation to increase the money supply. What is the effect on the interest rate?
A. Increase
B. Decrease
C. No change
D. Dep\end on other factors
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is $10 per unit, and the price of capital is $20 per unit, what is the minimum \cost of production?
A. $400
B. $800
C. $1,200
D. $2,000
Question 3
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 the percentage change in its exchange rate. Which of the following scenarios would lead to an improvement in the balance of payments?
A. An increase in the price of a country's exports and a decrease in the price of its imports
B. A decrease in the price of a country's exports and an increase in the price of its imports
C. An increase in the price of a country's exports and an increase in the price of its imports
D. A decrease in the price of a country's exports and a decrease in the price of its imports
Question 4
A central bank uses open market operations to increase the money supply. Which of the following would be a consequence of this action?
A. A decrease in the interest rate
B. An increase in the interest rate
C. A decrease in the money supply
D. No change in the interest rate
Question 5
A firm's supply function is given by Q = 2P + 10. If the price of the good is $5, what is the quantity supplied?
A. 10
B. 20
C. 30
D. 40
Question 6
A firm produces two goods, A and B, u\sing two inputs, labor (L) and capital (K). The production functions for the two goods are given by A = 2L + 3K and B = 4L + 2K. If the firm has 10 units of labor and 8 units of capital, and the prices of the two goods are p_A = 5 and p_B = 3, respectively, what is the firm's optimal production plan?
A. A = 5, B = 0
B. A = 3, B = 4
C. A = 2, B = 6
D. A = 0, B = 8
Question 7
A country's GDP at market price is ₦100 billion. If the GDP at factor \cost is ₦120 billion, what is the indirect tax rate?
A. 10%
B. 15%
C. 20%
D. 25%
Question 8
A monopolist faces a market demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10 + 2Q. What is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 9
A country's agricultural sector is characterized by a high degree of inefficiency and low productivity. Which of the following policies would be most effective in addres\sing this issue?
A. Providing subsidies to farmers
B. Implementing price controls
C. Investing in agricultural research and development
D. Impo\sing tariffs on imported agricultural products
Question 10
A country's balance of payments is given by the following table:\n\n| | Exports | Imports | Balance |\n| --- | --- | --- | --- |\n| 2020 | $100 | $150 | -$50 |\n| 2021 | $120 | $180 | -$60 |\n| 2022 | $140 | $210 | -$70 |\n\nWhat is the tr\end of the balance of payments over the three years?
A. Increa\sing deficit
B. Decrea\sing deficit
C. Increa\sing surplus
D. Decrea\sing surplus
Question 11
A firm has a production function Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm has 4 units of labor and 9 units of capital, what is the firm's optimal production level?
A. 4
B. 6
C. 8
D. 10
Question 12
A government imposes a tax on a particular good to reduce its consumption. Which of the following would be a consequence of this action?
A. An increase in the price of the good
B. A decrease in the price of the good
C. No change in the price of the good
D. A decrease in the quantity demanded of the good
Question 13
A perfectly competitive market has a downward-sloping demand curve. If the market price falls from ₦100 to ₦80, and the quantity demanded increases from 100 units to 120 units, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 14
Consider a consumer with a utility function U(x,y) = 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 p_x = 2 and p_y = 3, respectively, what is the consumer's optimal bundle of goods?
A. (x,y) = (2,2)
B. (x,y) = (3,1)
C. (x,y) = (4,0)
D. (x,y) = (0,4)
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%

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