POST UTME ELIZADE UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is ₦100 billion. If the government decides to increase the budget by 20% and the inflation rate is 15%, what is the new GDP?
A. ₦120 billion
B. ₦125 billion
C. ₦130 billion
D. ₦135 billion
Question 2
A firm's production function is given by \( Q = 2L^2 + 3K \), where Q is the output, L is the labor, and K is the capital. If the firm's labor and capital are 4 and 6 respectively, what is the firm's output?
A. 24
B. 36
C. 48
D. 60
Question 3
A firm is producing a good with a total revenue of ₦1000 and a total \cost of ₦800. If the firm's profit-maximizing output is 100 units, what is the firm's marginal revenue?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 4
A firm's demand for labor is given by the equation Q = 100L^\( -1/2 \), where Q is the quantity of labor demanded and L is the wage rate. If the wage rate increases from ₦100 to ₦120, what will be the effect on the quantity of labor demanded?
A. The quantity of labor demanded will increase.
B. The quantity of labor demanded will decrease.
C. The quantity of labor demanded will remain unchanged.
D. The effect on the quantity of labor demanded is uncertain.
Question 5
A monopolist faces a demand curve given by \( Q = 100 - 2P \). If the marginal \cost is ₦20, what is the optimal price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 6
A monopolist faces a demand curve given by \( Q = 100 - 2P \). If the marginal \cost is ₦20, what is the optimal price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 7
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \). If C = ₦100 billion, I = ₦20 billion, G = ₦30 billion, X = ₦150 billion, and M = ₦80 billion, what is the country's GDP?
A. ₦220 billion
B. ₦230 billion
C. ₦240 billion
D. ₦250 billion
Question 8
A consumer has a budget of ₦10,000 and wants to buy two goods, A and B. The price of good A is ₦2,000 and the price of good B is ₦3,000. If the consumer sp\ends all their budget, what is the maximum quantity of good B that can be bought?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 9
A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (x,y) = (100, 0)
B. (x,y) = (80, 20)
C. (x,y) = (60, 40)
D. (x,y) = (40, 60)
Question 10
The Central Bank of Nigeria (CBN) has introduced a new monetary policy aimed at reducing inflation. The policy involves increa\sing the reserve requirement for commercial banks. What is the likely effect of this policy on the money supply?
A. Increase the money supply
B. Decrease the money supply
C. Have no effect on the money supply
D. Increase the interest rate
Question 11
A consumer's utility function is given by ( u(x,y) = 3x + 2y ). If the prices of x and y are ₦5 and ₦10 respectively, and the consumer's income is ₦1000, what is the optimal bundle of x and y?
A. x = 40, y = 20
B. x = 60, y = 10
C. x = 80, y = 5
D. x = 100, y = 0
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm's \cost function is given by C = 100L + 200K, what is the firm's optimal input mix?
A. L = 100, K = 100
B. L = 50, K = 200
C. L = 200, K = 50
D. L = 1000, K = 1000
Question 13
A firm's demand curve is given by Q = 100 - 2P, and its supply curve is given by Q = 2P - 100. What is the equilibrium price and quantity?
A. ₦50, 50 units
B. ₦75, 25 units
C. ₦100, 0 units
D. ₦200, 100 units
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 income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (100, 50)
B. (200, 20)
C. (50, 100)
D. (150, 75)
Question 15
A consumer's indifference curve is represented by the equation \( U = 2x + 3y \). If the consumer's income is ₦100 and the prices of goods x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (10, 5)
B. (5, 10)
C. (15, 3)
D. (20, 2)

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