POST UTME GREENFIELD UNIVERSITY 2018 Economics | Objective

Are you preparing for POST UTME GREENFIELD UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1
Calculate the returns to scale for a firm that experiences a 20% increase in all inputs and a 25% increase in output.
A. Decrea\sing Returns to Scale
B. Increa\sing Returns to Scale
Correct C. Cons\tant Returns to Scale
D. No Returns to Scale

Correct Answer: C

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Question 2
A country's GDP is ₦10 trillion, and its GNP is ₦11 trillion. What is the net factor income from abroad?
Correct A. ₦1 trillion
B. ₦100 billion
C. ₦500 billion
D. ₦1.5 trillion

Correct Answer: A

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Question 3
A firm's demand function is given by Qd = 100 - 2P, and its supply function is given by Qs = 2P - 100. What is the equilibrium price and quantity?
A. P = 50, Q = 150
Correct B. P = 75, Q = 100
C. P = 100, Q = 50
D. P = 200, Q = 0

Correct Answer: B

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Question 4
A country's balance of payments account shows a trade deficit of ₦500 billion and a capital account surplus of ₦200 billion. What is the overall balance of payments position?
A. ₦300 billion deficit
Correct B. ₦200 billion surplus
C. ₦500 billion deficit
D. ₦700 billion surplus

Correct Answer: B

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Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. What is the marginal product of labor?
A. L^\( -0.5 \)K^0.5
Correct B. 2L^\( -0.5 \)K^0.5
C. L^0.5K^\( -0.5 \)
D. 2L^0.5K^\( -0.5 \)

Correct Answer: B

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Question 6
Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average GDP per capita is ₦50,000, what is the implied GDP deflator?
A. 100
Correct B. 200
C. 300
D. 400

Correct Answer: B

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Question 7
A firm's demand function is given by Q = 100 - 2P. If the price elasticity of demand is cons\tant and equal to -2, what is the price at which the firm will sell 50 units?
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

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Question 8
A country's balance of payments account shows a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. What is the value of the capital account surplus?
A. ₦50 billion
B. ₦75 billion
Correct C. ₦100 billion
D. ₦125 billion

Correct Answer: C

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Question 9
A firm's production function is given by Q = 2L + 3K. If the firm's output is 100 units and the wage rate is ₦50 per hour, what is the optimal level of capital?
A. ₦100
B. ₦150
Correct C. ₦200
D. ₦250

Correct Answer: C

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Question 10
A country's national income is ₦1 trillion. If the government's consumption is ₦200 billion and the private sector's consumption is ₦300 billion, what is the value of the investment?
A. ₦100 billion
B. ₦150 billion
C. ₦200 billion
Correct D. ₦250 billion

Correct Answer: D

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Question 11
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue is 50, find the value of x.
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 12
The following diagram shows the supply and demand curves for a particular good. If the price of the good is currently 10, what is the equilibrium quantity?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 13
A country's balance of payments is given by the equation BOP = 100 + 20x - 5y, where x is the value of exports and y is the value of imports. If the value of exports is 50 and the value of imports is 30, find the balance of payments.
A. 150
B. 200
Correct C. 250
D. 300

Correct Answer: C

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Question 14
A firm's \cost function is given by the equation C(x) = 100 + 20x + 3x^2. If the firm produces 20 units, find the total \cost.
A. 1000
B. 1200
Correct C. 1500
D. 1800

Correct Answer: C

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Question 15
A consumer's utility function is given by the equation U(x,y) = 2x + 3y. If the consumer's income is 100 and the price of x is 5 and the price of y is 10, find the optimal bundle of x and y.
A. (10,20)
Correct B. (20,10)
C. (30,5)
D. (5,30)

Correct Answer: B

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Question 16
The government of a country decides to implement a policy of price control to reduce inflation. However, the policy leads to a shortage of goods in the market. What is the likely cause of the shortage?
Correct A. The policy has reduced the supply of goods in the market.
B. The policy has increased the demand for goods in the market.
C. The policy has reduced the production \costs of goods in the market.
D. The policy has increased the prices of goods in the market.

Correct Answer: A

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Question 17
A monopolistically competitive firm faces a downward-sloping demand curve. What is the likely effect of an increase in the firm's \costs on its supply curve?
A. The supply curve shifts to the left.
Correct B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve becomes perfectly elastic.

Correct Answer: B

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Question 18
A country's GDP is calculated as follows: GDP = C + I + G + \( X - M \). What is the meaning of the term 'X' in this equation?
Correct A. Exports
B. Imports
C. Government sp\ending
D. Investment

Correct Answer: A

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Question 19
A central bank uses the following monetary policy tool to reduce inflation: it sells government securities on the open market. What is the likely effect of this action on the money supply?
Correct A. The money supply decreases.
B. The money supply increases.
C. The money supply remains unchanged.
D. The money supply becomes perfectly elastic.

Correct Answer: A

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Question 20
A firm is considering two different production techno\logies: one that is labor-intensive and another that is capital-intensive. Which techno\logy is likely to be more profitable in the long run?
A. The labor-intensive techno\logy
Correct B. The capital-intensive techno\logy
C. Both techno\logies are equally profitable
D. Neither techno\logy is profitable

Correct Answer: B

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Question 21
Consider a country with a fixed money supply of ₦100 billion and a central bank that aims to maintain a 5% annual inflation rate. If the current inflation rate is 3%, what is the minimum amount of money the central bank must withdraw from circulation to achieve its target inflation rate?
A. ₦2.5 billion
Correct B. ₦5 billion
C. ₦10 billion
D. ₦20 billion

Correct Answer: B

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Question 22
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 4L + 2K. If the firm has 10 units of labor and 8 units of capital, what is the opportunity \cost of producing one more unit of good X?
A. 1 unit of labor
Correct B. 1 unit of capital
C. 2 units of labor
D. 2 units of capital

Correct Answer: B

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Question 23
A country's balance of payments account shows a trade deficit of $10 billion, a current account deficit of $5 billion, and a capital account surplus of $3 billion. What is the value of the country's net foreign investment?
Correct A. $2 billion
B. $5 billion
C. $8 billion
D. $10 billion

Correct Answer: A

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Question 24
A firm's demand function for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply function is given by Qs = 2P - 100, what is the equilibrium price and quantity?
A. P = $50, Q = 50
Correct B. P = $75, Q = 75
C. P = $100, Q = 100
D. P = $150, Q = 150

Correct Answer: B

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Question 25
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm has 4 units of labor and 9 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
Correct C. 2
D. 3

Correct Answer: C

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