POST UTME EKSU 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 current exports and imports are 100 and 80 respectively, and foreign investment and domestic investment are 50 and 30 respectively, what is the balance of payments?
A. 10
B. 20
C. 30
D. 40
Question 2
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's current labor and capital inputs are 4 and 9 respectively, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 3
A country's supply function is given by Q = 50 + 2P, where Q is quantity supplied and P is price. If the country's current price is 30, what is the quantity supplied?
A. 70
B. 80
C. 90
D. 100
Question 4
A monopolistically competitive firm faces a downward-sloping demand curve. What is the primary effect of an increase in the firm's fixed \costs?
A. Increase in price
B. Decrease in quantity supplied
C. Increase in quantity supplied
D. Decrease in price
Question 5
A country's GNP is $120 billion, its GDP is $110 billion, and its net factor income from abroad is $5 billion. What is its net capital outflow?
A. $5 billion
B. $10 billion
C. $15 billion
D. $20 billion
Question 6
A country is experiencing a trade deficit due to a large imbalance between imports and exports. To address this issue, the government decides to impose tariffs on imported goods. What will be the effect of this policy on the trade deficit?
A. The trade deficit will decrease
B. The trade deficit will increase
C. The trade deficit will remain unchanged
D. The trade deficit will be unaffected
Question 7
A firm's demand curve is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's price is increased by 20%, what is the percentage change in quantity demanded?
A. -10%
B. -20%
C. -30%
D. -40%
Question 8
A country's GDP is ₦1,000,000,000. If the country's population is 20,000,000, what is the per capita income?
A. ₦50
B. ₦100
C. ₦200
D. ₦500
Question 9
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect on the firm's profit-maximizing output?
A. Increases
B. Decreases
C. Remains the same
D. Cannot be determined
Question 10
A consumer has a budget constraint of ₦1000 and a preference for two goods, A and B. The prices of goods A and B are ₦200 and ₦300, respectively. U\sing the budget constraint and indifference curve analysis, what will be the consumer's optimal consumption bundle?
A. (4 units of A, 2 units of B)
B. (2 units of A, 4 units of B)
C. (1 unit of A, 3 units of B)
D. (3 units of A, 1 unit of B)
Question 11
The government of a country imposes a tax on imported goods to raise revenue. However, the tax also leads to an increase in the price of the goods. U\sing the concept of opportunity \cost, explain why the government's decision to impose the tax may not be the most efficient way to raise revenue.
A. The tax increases the price of the goods, leading to a decrease in demand and a loss of revenue.
B. The tax shifts the supply curve to the left, leading to a decrease in production and a loss of revenue.
C. The tax increases the opportunity \cost of producing the goods, leading to a decrease in production and a loss of revenue.
D. The tax has no effect on the opportunity \cost of producing the goods, and therefore does not lead to a decrease in production or a loss of revenue.
Question 12
A consumer's demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the consumer's income is ₦1000 and the price of the product is ₦50, calculate the consumer's willingness to pay for the product.
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 13
A firm is considering a new investment project that requires an initial outlay of ₦500,000. The project is expected to generate a cash inflow of ₦200,000 in the first year, ₦250,000 in the second year, and ₦300,000 in the third year. U\sing the internal rate of return (IRR) method, what will be the minimum discount rate that would make the project acceptable?
A. 10%
B. 15%
C. 20%
D. 25%
Question 14
A consumer has a budget of ₦10,000 to sp\end on two goods, X and Y. The price of good X is ₦2,000 and the price of good Y is ₦1,500. U\sing the concept of budget constraint, explain why the consumer may choose to sp\end all of their budget on good X.
A. The consumer has a high income elasticity of demand for good X, leading to a high demand for the good.
B. The consumer has a low income elasticity of demand for good Y, leading to a low demand for the good.
C. The consumer has a budget constraint that limits their ability to purchase good Y.
D. The consumer has a high price elasticity of demand for good X, leading to a high demand for the good.
Question 15
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's current labor and capital inputs are 4 and 9 respectively, what is the marginal product of capital?
A. 1
B. 2
C. 3
D. 4

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