POST UTME ESUT 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government's budget is said to be in surplus when its revenue exceeds its exp\enditure. True or False?
A. True
B. False
C. Dep\ends on the government's economic conditions
D. Not enough information to determine
Question 2
The agricultural sector in Nigeria is characterized by low productivity and limited mechanization. Which of the following policies would be most effective in addres\sing these issues?
A. Increa\sing government subsidies for fertilizers and pesticides.
B. Implementing a policy of crop rotation and intercropping.
C. Investing in irrigation infrastructure.
D. Promoting the use of genetically modified crops.
Question 3
The concept of scarcity in economics implies that the wants and needs of individuals are unlimited, but the resources available to satisfy these wants and needs are limited. Which of the following is a correct implication of this concept?
A. The law of diminishing marginal utility is a direct result of scarcity.
B. The opportunity \cost of a choice is the value of the next best alternative foregone.
C. The concept of scarcity is only relevant in developing countries.
D. The concept of scarcity is only relevant in the short run.
Question 4
A government's budget is said to be in surplus when its revenue exceeds its exp\enditure. True or False?
A. True
B. False
C. Dep\ends on the government's economic conditions
D. Not enough information to determine
Question 5
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. -20%
B. -10%
C. 0%
D. 10%
Question 6
The government of a country is considering a policy to reduce inflation. The policy involves reducing the money supply by 10%. If the initial money supply is ₦100 billion, what is the new money supply?
A. ₦90 billion
B. ₦95 billion
C. ₦100 billion
D. ₦105 billion
Question 7
A country's balance of payments is in equilibrium when the current account and capital account are equal. True or False?
A. True
B. False
C. Dep\ends on the country's economic conditions
D. Not enough information to determine
Question 8
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal \cost
B. marginal revenue
C. average \cost
D. average revenue
Question 9
The money multiplier is the ratio of the change in the money supply to the change in the reserve requirement. True or False?
A. True
B. False
C. Dep\ends on the central bank's actions
D. Not enough information to determine
Question 10
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost is MC = 10 + 2Q. What is the profit-maximizing quantity of output?
A. 20
B. 30
C. 40
D. 50
Question 11
Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average person consumes ₦50,000 worth of goods and services per year, what is the country's GDP per capita?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 12
The production function for a firm is given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital, and L is labor. If the firm increases its capital from 400 to 900, and labor remains cons\tant at 400, what is the percentage increase in output?
A. 20%
B. 30%
C. 40%
D. 50%
Question 13
The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied when the price increases by 5%?
A. 10%
B. 15%
C. 20%
D. 25%
Question 14
A firm's production function is given by Q = 2K^\( 1/2 \)L^\( 1/2 \). If the firm increases its labor from 400 to 900, and capital remains cons\tant at 400, what is the percentage increase in output?
A. 20%
B. 30%
C. 40%
D. 50%
Question 15
A firm is considering two investment projects. Project A has a 10% chance of success and a 90% chance of failure, with a payoff of ₦100 million if successful. Project B has a 20% chance of success and a 80% chance of failure, with a payoff of ₦200 million if successful. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive

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