POST UTME GREENFIELD UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments accounts show the following: Exports = ₦1,500, Imports = ₦2,000, and Net Factor Income from Abroad = ₦500. What is the country's balance of payments deficit?
A. ₦500
B. ₦750
C. ₦1,000
D. ₦1,250
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 10% and 20%, respectively, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A government imposes a tax on a firm's output. If the firm's supply curve is given by \( Q = 2P - 10 \) and the tax rate is ₦5 per unit, what is the firm's new supply curve?
A. Q = 2P - 15
B. Q = 2P - 20
C. Q = 2P - 25
D. Q = 2P - 30
Question 4
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain unchanged
D. Total revenue will increase at first, then decrease
Question 5
The balance of payments (BOP) accounts for a country can be represented by the following identity: \( CA + FDI + PPI = 0 \), where ( CA ) is the current account balance, ( FDI ) is the foreign direct investment, and ( PPI ) is the private portfolio investment. If the current account balance is \( CA = -100 \) and the private portfolio investment is \( PPI = 50 \), what is the value of the foreign direct investment ( FDI )?
A. -50
B. -150
C. -200
D. -250
Question 6
The government of Nigeria has introduced policies to promote agricultural industrialization. Which of the following is a likely outcome of this policy?
A. Increased production of agricultural products
B. Reduced prices of agricultural products
C. Increased employment in the agricultural sector
D. Decreased imports of agricultural products
Question 7
A firm's \cost function is given by ( C(q) = 2q^2 + 5q + 10 ). If the firm produces 10 units, what is its total \cost?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 8
A central bank can implement monetary policy by buying or selling government securities on the open market. What is the effect of the central bank buying government securities on the money supply?
A. The money supply increases.
B. The money supply decreases.
C. The money supply remains cons\tant.
D. The money supply becomes zero.
Question 9
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where Q_X is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. The production function for good Y is given by Q_Y = 3L^0.2K^0.8. If the firm uses 100 units of labor and 200 units of capital, what is the opportunity \cost of producing one more unit of good X?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 10
A firm's revenue function is given by ( R(x) = 2x^2 + 5x + 1 ), where ( x ) is the number of units produced. If the firm's marginal revenue is ( MR(x) = 4x + 5 ), find the value of ( x ) at which the marginal revenue is maximized.
A. 1
B. 2
C. 3
D. 4
Question 11
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's labor and capital are fixed at 100 and 200 respectively, what is the value of the output?
A. 20
B. 40
C. 60
D. 80
Question 12
A government imposes a tax on a firm's output, which increases the firm's \cost of production. The firm's supply curve shifts to the left, resulting in a decrease in the quantity supplied. What is the effect of this tax on the firm's revenue?
A. Increase
B. Decrease
C. No change
D. Indeterminate
Question 13
A firm is considering investing in a new project. The project has a \cost of ₦1,000 and is expected to generate a revenue of ₦1,200. What is the firm's expected profit from the project?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 14
A country's economic growth is measured by its GDP growth rate. If the country's GDP grows at a rate of 5% per annum, and the population grows at a rate of 2% per annum, what is the effect on the GDP per capita?
A. Increase
B. Decrease
C. No change
D. Indeterminate
Question 15
The concept of opportunity \cost is closely related to the law of increa\sing opportunity \cost. Which of the following best describes the law of increa\sing opportunity \cost?
A. The law of increa\sing opportunity \cost states that as the quantity of a good increases, the opportunity \cost of producing one more unit of that good also increases.
B. The law of increa\sing opportunity \cost states that as the quantity of a good increases, the opportunity \cost of producing one more unit of that good remains cons\tant.
C. The law of increa\sing opportunity \cost states that as the quantity of a good increases, the opportunity \cost of producing one more unit of that good decreases.
D. The law of increa\sing opportunity \cost states that as the quantity of a good increases, the opportunity \cost of producing one more unit of that good becomes zero.

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