POST UTME ELIZADE UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The money multiplier is affected by the reserve requirement ratio. If the reserve requirement ratio increases, what happens to the money multiplier?
Question 2
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's current GDP is ₦100 billion, and the current values of C, I, G, X, and M are ₦20 billion, ₦30 billion, ₦10 billion, ₦40 billion, and ₦20 billion respectively, what is the value of the country's net exports?
Question 3
A country's balance of payments is given by the equation \( BOP = X - M + F - C \). If the country's exports are \( X = 1000 \), imports are \( M = 500 \), foreign aid is \( F = 200 \), and capital outflows are \( C = 300 \), find the country's balance of payments.
Question 4
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is 20, what is the quantity demanded?
Question 5
A country's GDP is given by the equation \( GDP = C + I + G + \( X - M \ \) ). If the country's consumption is \( C = 1000 \), investment is \( I = 500 \), government sp\ending is \( G = 2000 \), exports are \( X = 1500 \), and imports are \( M = 1000 \), find the country's GDP.
Question 6
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal \cost is MC = 10. What is the firm's optimal quantity?
Question 7
Suppose the demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.
Question 8
A country's GDP is ₦1,000,000,000. If the country's population is 20 million, and the average GDP per capita is ₦50,000, what is the country's GDP per capita?
Question 9
The law of diminishing marginal returns states that as the quantity of a variable input increases, the marginal product of that input will eventually decrease. What is the reason for this decrease?
Question 10
A country's balance of payments is given by the following equation: BOP = X - M - \( I - S \). If X = 100, M = 50, I = 20, and S = 30, what is the balance of payments?
Question 11
A country's economy is experiencing a recession. The government decides to implement a fiscal policy to stimulate aggregate demand. Which of the following fiscal policy tools is most likely to be effective in this situation?
Question 12
A country's government has decided to implement a new tax on all imported goods. The tax rate is 15% of the good's value. If a consumer buys a pair of shoes worth ₦15,000, and the tax rate is increased to 20%, how much more tax will they pay?
Question 13
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. If the original supply curve was ( S(x) = 2x + 5 ) and the tax causes the new supply curve to be ( S'(x) = 2x + 10 ), find the deadweight loss of the tax.
Question 14
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the value of net factor income from abroad?
Question 15
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm increases labor from 100 to 121 units, and capital from 100 to 121 units, what is the percentage change in \cost?
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