POST UTME ELIZADE UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments can be affected by the following factors: (A) exchange rates, (B) interest rates, (C) inflation rates, (D) all of the above. Which of the following is NOT a factor that affects a country's balance of payments?
A. Exchange rates
B. Interest rates
C. Inflation rates
D. Government policies
Question 2
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P and the supply curve is given by Qs = 2P, find the equilibrium price and quantity u\sing the supply and demand framework.
A. \( P = 50, Q = 50 \)
B. \( P = 25, Q = 75 \)
C. \( P = 75, Q = 25 \)
D. \( P = 100, Q = 0 \)
Question 3
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 200 - 2P. Find the profit-maximizing price and quantity u\sing the marginal revenue and marginal \cost framework.
A. \( P = 75, Q = 25 \)
B. \( P = 50, Q = 50 \)
C. \( P = 25, Q = 75 \)
D. \( P = 100, Q = 0 \)
Question 4
A firm has a production function given by Q = 2L + 3K. The firm's \cost function is C(L, K) = 10L + 20K. U\sing the concept of opportunity \cost, find the firm's optimal input combination.
A. L = 5, K = 10
B. L = 10, K = 5
C. L = 15, K = 20
D. L = 20, K = 15
Question 5
Consider a perfectly competitive market with multiple firms producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the likely outcome for the firms' profit maximization?
A. The firms will produce at the point where MR = MC
B. The firms will produce at the point where P = MC
C. The firms will produce at the point where MR = P
D. The firms will produce at the point where MC = P
Question 6
A firm is operating on its long-run average \cost curve. If the firm experiences a decrease in the price of one of its inputs, what will happen to its long-run average \cost curve?
A. It will shift to the left
B. It will shift to the right
C. It will remain unchanged
D. It will shift upwards
Question 7
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its balance of payments?
A. ₦5 billion surplus
B. ₦5 billion deficit
C. ₦10 billion surplus
D. ₦10 billion deficit
Question 8
A country's national income is given by the equation Y = C + I + G, where Y is the national income, C is the consumption, I is the investment and G is the government sp\ending. If the consumption is ₦100 billion, the investment is ₦50 billion and the government sp\ending is ₦20 billion, what is the national income?
A. ₦170 billion
B. ₦180 billion
C. ₦190 billion
D. ₦200 billion
Question 9
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 ₦100 billion and the value of imports is ₦120 billion, what is the balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 10
Consider the following diagram:
A. Supply and demand curves
B. Production possibilities frontier
C. Cost-benefit analysis
D. Opportunity \cost
Question 11
A consumer has a utility function given by U(x, y) = 2x + 3y. The consumer's budget constraint is 20x + 15y = 300. U\sing the Lagrange multiplier method, find the consumer's optimal consumption bundle.
A. (10, 20)
B. (15, 15)
C. (20, 10)
D. (25, 5)
Question 12
A firm's \cost function is given by C = 2Q^2 + 10Q + 100, where C is the total \cost and Q is the quantity produced. If the firm produces 10 units, calculate the total \cost.
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 13
A firm's \cost function is given by C(Q) = 100 + 2Q + 0.1Q^2. If the firm's revenue function is R(Q) = 200Q - 0.5Q^2, find the firm's profit-maximizing quantity and price.
A. Q = 20, P = 90
B. Q = 30, P = 80
C. Q = 40, P = 70
D. Q = 50, P = 60
Question 14
A firm is operating on its production possibilities frontier. If the firm experiences a decrease in the price of one of its inputs, what will happen to its production possibilities frontier?
A. It will shift to the left
B. It will shift to the right
C. It will remain unchanged
D. It will shift upwards
Question 15
A country's balance of payments account shows a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. If the capital account surplus is ₦20 billion, calculate the overall balance of payments deficit u\sing the balance of payments identity.
A. ₦30 billion
B. ₦40 billion
C. ₦50 billion
D. ₦60 billion

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