POST UTME ESUT 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is in equilibrium. If the country's imports increase by ₦10 billion, what will happen to its trade balance?
A. Trade balance will increase
B. Trade balance will decrease
C. Trade balance will remain the same
D. Trade balance will increase at first, then decrease
Question 2
A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the two goods are ₦50 and ₦75 respectively, and the consumer has a budget of ₦150, what is the optimal quantity of good x?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 3
Agricultural development is crucial for economic growth in Nigeria. Which of the following is a major benefit of agricultural development?
A. Increased employment opportunities.
B. Improved s\tandard of living.
C. Increased food security.
D. Increased foreign exchange earnings.
Question 4
A firm is producing a good with a cons\tant elasticity of demand of 0.8. If the price of the good increases by 15%, what is the percentage change in quantity demanded?
A. 10%
B. 12%
C. 15%
D. 18%
Question 5
A country's economic growth is influenced by its human capital, natural resources, and techno\logical advancements. However, the relationship between these factors is complex and can be described u\sing the following equation: \( Y = f\( H, R, T \ \)). If the country's human capital increases by 10% and its natural resources decrease by 5%, while techno\logical advancements remain cons\tant, what is the expected change in economic growth, assuming the partial derivatives are: \( ∂Y/∂H = 0.8 \), \( ∂Y/∂R = -0.2 \), and \( ∂Y/∂T = 0.3 \)?
A. -3%
B. -1%
C. 1%
D. 3%
Question 6
A firm's demand for a product is given by the equation: \( Q_d = 100 - 2P + 5Y \), where \( Q_d \) is the quantity demanded, (P) is the price, and (Y) is the income. If the price is $10 and the income is $500, what is the quantity demanded?
A. 50
B. 75
C. 100
D. 125
Question 7
A firm's supply curve is upward-sloping, indicating that as the price of a good increases, the quantity supplied also increases. What is the likely reason for this?
A. The firm is experiencing economies of scale.
B. The firm is experiencing diseconomies of scale.
C. The firm is facing a decrease in the opportunity \cost of production.
D. The firm is facing an increase in the opportunity \cost of production.
Question 8
A country's GDP is 100 billion naira. If the country's GNP is 120 billion naira, what is the net factor income from abroad?
A. 10 billion naira
B. 20 billion naira
C. 30 billion naira
D. 40 billion naira
Question 9
A firm's \cost function is given by C(x) = 100 + 2x^2. If the firm's revenue function is R(x) = 100x - 2x^2, find the value of x that minimizes \cost.
A. 10
B. 20
C. 30
D. 40
Question 10
A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm's marginal revenue function is MR(x) = 100 - 4x, find the value of x that maximizes revenue.
A. 20
B. 25
C. 30
D. 35
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the price that maximizes the monopolist's profit?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 12
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 price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 13
A firm is faced with a perfectly elastic demand curve. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain the same
D. Total revenue will increase at first, then decrease
Question 14
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's utility function is U(x,y) = 2x + 3y, find the optimal values of x and y.
A. x = 3, y = 3
B. x = 4, y = 2
C. x = 5, y = 1
D. x = 6, y = 0
Question 15
A country's agricultural sector is characterized by a production function of the form Q = f(L, K), where Q is output, L is labor, and K is capital. If the country's current labor and capital inputs are 500 units each, and the production function is homogeneous of degree 2, what is the country's current output?
A. 250000
B. 500000
C. 750000
D. 1000000

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