POST UTME ELIZADE UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is in surplus. What does this imply about the country's trade balance?
A. The trade balance is in surplus
B. The trade balance is in deficit
C. The trade balance is balanced
D. The trade balance is not affected
Question 2
A country's GDP is given by GDP = 100 + 0.5Y + 0.01Y^2, where Y is the level of real GDP. If the country's GNP is given by GNP = 120 - 0.2Y + 0.005Y^2, what is the country's net factor income from abroad?
A. 10
B. 20
C. 30
D. 40
Question 3
A firm is considering investing in a new project. The project has a fixed \cost of ₦1,000 and a variable \cost of ₦200 per unit. The firm expects to sell 50 units of the product at a price of ₦500 per unit. U\sing the concept of elasticity of demand, determine whether the firm should invest in the project.
A. The firm should invest in the project because the demand is elastic.
B. The firm should not invest in the project because the demand is inelastic.
C. The firm should invest in the project because the demand is unit elastic.
D. The firm should not invest in the project because the demand is perfectly elastic.
Question 4
A country's balance of payments account is given by the following equation: BOP = \( X-M \) + \( F-I \). If the country's exports (X) are ₦500 billion, imports (M) are ₦300 billion, foreign investment (F) is ₦200 billion, and domestic investment (I) is ₦150 billion, what is the country's balance of payments?
A. +₦100 billion
B. +₦50 billion
C. +₦0 billion
D. -₦50 billion
Question 5
Consider a small open economy with a fixed exchange rate. The economy's aggregate demand curve is given by AD = 100 + 0.5Y, where Y is the level of real GDP. The economy's aggregate supply curve is given by AS = 80 + 0.2Y. If the economy is initially at full employment, what will be the effect of a 10% increase in government sp\ending on the level of real GDP?
A. The level of real GDP will increase by 5%
B. The level of real GDP will decrease by 5%
C. The level of real GDP will remain unchanged
D. The level of real GDP will increase by 10%
Question 6
A country is faced with a budget constraint given by the equation C + I + G = Y, where C is consumption, I is investment, G is government sp\ending, and Y is national income. If the country wants to increase its national income by 10%, how much should it increase its government sp\ending?
A. 5%
B. 10%
C. 15%
D. 20%
Question 7
A country's balance of payments is given by the equation \( BOP = X - M \), where X is the value of exports and M is the value of imports. If the value of exports is ₦1000 and the value of imports is ₦800, find the balance of payments.
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 8
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor and K is capital. If the firm's current labor and capital inputs are 4 and 9 respectively, what is the marginal product of capital?
A. \( \frac{1}{2}L^{1/2}K^{-1/2} \)
B. \( L^{1/2}K^{1/2} \)
C. \( 2L^{1/2}K^{-1/2} \)
D. \( 4L^{-1/2}K^{1/2} \)
Question 9
A government is considering a budget that allocates ₦1,000 for education and ₦500 for healthcare. If the government also allocates ₦200 for defense and ₦300 for infrastructure, what is the total budget?
A. ₦2,000
B. ₦2,300
C. ₦2,500
D. ₦2,700
Question 10
The Nigerian government has implemented a policy to increase the production of agricultural products. If the production of rice increases by 20% and the price of rice decreases by 10%, what is the effect on the consumer's surplus?
A. Increase by 10%
B. Decrease by 10%
C. Remain the same
D. Increase by 20%
Question 11
A country is experiencing a recession. What is the likely effect on the money supply?
A. The money supply will increase
B. The money supply will decrease
C. The money supply will remain the same
D. The money supply will fluctuate
Question 12
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's income is ₦1000, and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. (10,20)
B. (20,10)
C. (15,15)
D. (25,5)
Question 13
A country's economic growth rate is given by the equation: GDP growth rate = \( C + I + G + X - M \) / GDP. If the country's GDP is ₦10 trillion, and the values of C, I, G, X, and M are ₦2 trillion, ₦1 trillion, ₦500 billion, ₦1.5 trillion, and ₦1.2 trillion respectively, what is the country's economic growth rate?
A. 2%
B. 3%
C. 4%
D. 5%
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm's labor and capital inputs increase by 10% and 20% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
A firm is considering investing in a new project. The project has a high initial \cost but will generate a large profit in the long run. What is the opportunity \cost of investing in this project?
A. The initial \cost of the project
B. The profit generated by the project
C. The opportunity \cost is not relevant in this case
D. The opportunity \cost is the profit generated by the project minus the initial \cost

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: