POST UTME ESUT 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue function given by MR = 2P. If the firm's marginal \cost is cons\tant at 10, what is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 60, Q = 20
D. P = 20, Q = 60
Question 2
A country's GDP is given by the following equation: GDP = C + I + G + \( X - M \). If the country's consumption increases by 10%, investment decreases by 5%, government sp\ending increases by 15%, exports increase by 10%, and imports decrease by 5%, what is the percentage change in GDP?
A. 5%
B. 10%
C. 15%
D. 20%
Question 3
The money market is a market for short-term loans and investments. It is characterized by
A. long-term loans and investments
B. high-risk, high-return investments
C. short-term loans and investments with low risk and low return
D. all of the above
Question 4
The demand for a product is given by the equation P = 100 - 2Q, where P is the price and Q is the quantity demanded. The supply of the product is given by the equation P = 50 + Q. What is the equilibrium price and quantity?
A. P = 75, Q = 25
B. P = 50, Q = 25
C. P = 100, Q = 25
D. P = 75, Q = 50
Question 5
A consumer's budget constraint is given by the equation \( 2x + 3y = 12 \). If the consumer's indifference curve is represented by the equation ( u(x,y) = 2x^2 + 3y^2 ), find the optimal bundle of x and y.
A. (x,y) = (3,3)
B. (x,y) = (4,2)
C. (x,y) = (5,1)
D. (x,y) = (6,0)
Question 6
A firm has a \cost function given by C = 2Q^2 + 10Q + 5, where Q is the quantity produced. If the firm's revenue function is given by R = 3Q^2 + 5Q, what is the firm's profit function?
A. P = 2Q^2 + 5Q
B. P = 3Q^2 + 2Q
C. P = 5Q^2 + 10Q
D. P = 10Q^2 + 5Q
Question 7
A country's GNP is calculated as the sum of all final goods and services produced by its citizens, regardless of where they are produced. If a country's citizens produce goods in a foreign country and export them to the home country, how will this affect the home country's GNP?
A. The home country's GNP will increase.
B. The home country's GNP will decrease.
C. The home country's GNP will remain unchanged.
D. The home country's GNP will be affected only if the goods are produced by domestic entities.
Question 8
A firm's \cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in total \cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 9
A government imposes a tax on a good. What is the likely effect on the supply of the good?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 10
A central bank implements a monetary policy by increa\sing the reserve requirement for commercial banks. 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 unchanged.
D. The money supply will be affected only if the commercial banks are owned by the central bank.
Question 11
A country's balance of payments is given by the following equation: BOP = X - M + \( F - I \). If the country's exports increase by 10%, imports decrease by 5%, foreign investment increases by 15%, and domestic investment decreases by 10%, what is the percentage change in the balance of payments?
A. -5%
B. 0%
C. 5%
D. 10%
Question 12
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at a point where MR > MC, what is the most likely outcome?
A. The firm will increase production to maximize profits.
B. The firm will decrease production to minimize losses.
C. The firm will maintain current production levels.
D. The firm will exit the market.
Question 13
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
The government of Nigeria has implemented a policy to increase the production of rice in the country. Assuming that the production function for rice is given by Q = 100L^0.5K^0.5, where Q is the quantity of rice produced, L is the labor input, and K is the capital input, what is the value of the returns to scale?
A. Increa\sing
B. Decrea\sing
C. Cons\tant
D. Indeterminate
Question 15
A country's balance of payments (BOP) is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period of time. The BOP accounts include the current account and the capital account. The current account includes
A. exports and imports of goods and services
B. foreign direct investment and portfolio investment
C. remit\tances and foreign aid
D. all of the above

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: