POST UTME GREENFIELD UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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?
A. The money supply decreases.
B. The money supply increases.
C. The money supply remains unchanged.
D. The money supply becomes perfectly elastic.
Question 2
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
B. ₦200 billion surplus
C. ₦500 billion deficit
D. ₦700 billion surplus
Question 3
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
B. 1 unit of capital
C. 2 units of labor
D. 2 units of capital
Question 4
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?
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.
Question 5
A firm's production function is given by \( Q = 2L^2 + 3K \), where Q is the quantity produced, L is labor, and K is capital. If the firm's budget constraint is given by \( R = 10L + 20K \), where R is the total revenue, and the firm's goal is to maximize profit, what is the optimal level of labor and capital?
A. \( L = 2, K = 3 \)
B. \( L = 3, K = 2 \)
C. \( L = 4, K = 1 \)
D. \( L = 1, K = 4 \)
Question 6
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
B. P = $75, Q = 75
C. P = $100, Q = 100
D. P = $150, Q = 150
Question 7
A consumer has the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are ₦5 and ₦3, respectively, and the consumer has a budget of ₦30, what is the optimal bundle of x and y?
A. (2,6)
B. (4,4)
C. (6,2)
D. (8,0)
Question 8
A consumer's demand function for a good is given by \( Q = 10 - 2P \), where Q is the quantity demanded and P is the price. If the consumer's income is $100 and the price of the good is $5, what is the consumer's willingness to pay for the good?
A. $50
B. $60
C. $70
D. $80
Question 9
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
C. 250
D. 300
Question 10
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)
B. (20,10)
C. (30,5)
D. (5,30)
Question 11
A country's balance of payments account shows a trade deficit of ₦100 billion and a capital account surplus of ₦50 billion. What is the overall balance of payments position?
A. ₦50 billion surplus
B. ₦100 billion deficit
C. ₦150 billion surplus
D. ₦200 billion deficit
Question 12
A consumer's utility function is given by \( U = 2x + 3y \), where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by \( P_x x + P_y y = 100 \), where \( P_x \) and \( P_y \) are the prices of the two goods, and the consumer's goal is to maximize utility, what is the optimal level of consumption of the two goods?
A. \( x = 20, y = 30 \)
B. \( x = 30, y = 20 \)
C. \( x = 40, y = 10 \)
D. \( x = 10, y = 40 \)
Question 13
A firm has a \cost function given by C(q) = 100 + 2q^2. If the firm produces 10 units of the product, what is the change in its total \cost?
A. ₦200
B. ₦400
C. ₦600
D. ₦800
Question 14
A central bank is considering a monetary policy to increase the money supply. Which of the following instruments would be most effective in achieving this goal?
A. Open market operations
B. Discount rate
C. Reserve requirements
D. Foreign exchange intervention
Question 15
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
B. ₦75
C. ₦100
D. ₦125

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