POST UTME ESUT 2022 Economics | Objective

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Question 1
A government wants to reduce inflation by increa\sing the money supply. If the initial money supply is ₦100 billion and the government increases it by 20%, what is the new money supply?
A. ₦120 billion
B. ₦120 billion
C. ₦120 billion
D. ₦120 billion
Question 2
A central bank is considering a monetary policy to combat inflation. If the current inflation rate is 5% and the central bank wants to reduce it to 3% within the next 2 years, what is the required annual rate of decrease in the money supply?
A. 2%
B. 4%
C. 6%
D. 8%
Question 3
The concept of returns to scale in production theory implies that as the input of a variable factor increases, the output increases at a rate that is proportional to the increase in the input. Which of the following statements best describes the relationship between the input and output in the case of increa\sing returns to scale?
A. The output increases at a decrea\sing rate compared to the increase in the input.
B. The output increases at an increa\sing rate compared to the increase in the input.
C. The output increases at a cons\tant rate compared to the increase in the input.
D. The output remains cons\tant despite the increase in the input.
Question 4
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity of the good?
A. The equilibrium price increases and the equilibrium quantity decreases
B. The equilibrium price decreases and the equilibrium quantity increases
C. The equilibrium price increases and the equilibrium quantity increases
D. The equilibrium price decreases and the equilibrium quantity decreases
Question 5
A country's GDP is ₦10 trillion, and its GNP is ₦12 trillion. What is the country's net factor income from abroad?
A. ₦1 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 6
A firm has a production function Q = 2L^0.5K^0.5. If the price of labor is $10 per unit and the price of capital is $20 per unit, what is the optimal level of labor and capital?
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 100
D. L = 100, K = 200
Question 7
A country's GDP is $100 billion and its GNP is $120 billion. What is the value of the net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 8
A firm is producing a good with a production function Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm increases its capital input from 16 units to 25 units, and holds labor cons\tant at 4 units, what is the percentage change in output?
A. 25%
B. 50%
C. 75%
D. 100%
Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's revenue is ₦10,000, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 10
A government is planning to implement a new economic development project that will create 1000 jobs and increase the national income by ₦10 billion. If the opportunity \cost of each job is ₦5 million, what is the total opportunity \cost of the project?
A. ₦5 billion
B. ₦6 billion
C. ₦7 billion
D. ₦8 billion
Question 11
A firm in Nigeria is producing a good with a total revenue (TR) of ₦100,000 and a total \cost (TC) of ₦80,000. If the firm's profit is ₦20,000, what is the opportunity \cost of producing one more unit?
A. The opportunity \cost is the difference between the total revenue and the total \cost.
B. The opportunity \cost is the difference between the profit and the total \cost.
C. The opportunity \cost is the difference between the total revenue and the profit.
D. The opportunity \cost is the difference between the total \cost and the profit.
Question 12
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 surplus
B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit
Question 13
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 16 and 25 respectively, what is the marginal product of capital?
A. 0.0625
B. 0.125
C. 0.25
D. 0.5
Question 14
A firm's production function is given by Q = 2L^2 + 3K^2. If the firm's labor and capital inputs are increased by 10% and 20% respectively, what is the percentage change in output?
A. 30%
B. 40%
C. 50%
D. 60%
Question 15
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the monopolist's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80

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