POST UTME GREENFIELD UNIVERSITY 2020 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 2020 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1
Determine the price elasticity of demand for a product whose price increases from ₦100 to ₦120, and the quantity demanded decreases from 100 units to 80 units.
A. 0.5
Correct B. 1.25
C. -0.5
D. -1.25

Correct Answer: B

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Question 2
A firm has a production function given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of labor increases by 20% and the price of capital increases by 15%, what is the new value of the marginal product of labor?
A. 0.8
Correct B. 1.2
C. 1.5
D. 2.0

Correct Answer: B

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Question 3
A country's GDP is ₦1 trillion, its imports are ₦200 billion, and its exports are ₦300 billion. What is the country's balance of trade?
Correct A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion

Correct Answer: A

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Question 4
A firm has a production function given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of labor increases by 20% and the price of capital increases by 15%, what is the new value of the marginal product of labor?
A. 0.8
Correct B. 1.2
C. 1.5
D. 2.0

Correct Answer: B

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Question 5
A country's GDP is ₦1 trillion, its imports are ₦200 billion, and its exports are ₦300 billion. What is the country's balance of trade?
Correct A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion

Correct Answer: A

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Question 6
A country's balance of payments account is in equilibrium when the value of its imports equals the value of its exports. What is the name of the economic concept that describes the situation where a country's imports exceed its exports?
A. Trade Deficit
B. Trade Surplus
Correct C. Current Account Deficit
D. Current Account Surplus

Correct Answer: C

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Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum \cost of production?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 8
A consumer's utility function is given by U = 2x^2 + 3y^2. If the consumer's income is ₦1,000, and the prices of x and y are ₦50 and ₦75 respectively, what is the consumer's optimal bundle of x and y?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2

Correct Answer: A

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Question 9
A firm's demand function is given by Q = 100 - 2P. If the firm's revenue is ₦10,000, and the price elasticity of demand is 2, what is the firm's optimal price?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 10
A country's production function is given by Q = 2L^0.5K^0.5. If the country's output is 100 units, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum \cost of production?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the point where labor and capital inputs are equal?
A. 1
Correct B. 2
C. 3
D. 4

Correct Answer: B

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Question 12
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the price of good x is 2, what is the consumer's optimal bundle of goods?
A. x = 3, y = 4
Correct B. x = 4, y = 3
C. x = 6, y = 2
D. x = 2, y = 6

Correct Answer: B

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Question 13
A perfectly competitive market has a supply curve given by Q = 2P + 5. If the market demand curve is given by Q = 100 - 2P, what is the equilibrium price and quantity in the market?
Correct A. P = 10, Q = 45
B. P = 15, Q = 35
C. P = 20, Q = 25
D. P = 25, Q = 15

Correct Answer: A

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Question 14
A monopolist faces a demand curve given by Q = 100 - 2P and has a \cost function given by C = 20 + 2Q. What is the monopolist's profit-maximizing price and quantity?
A. P = 20, Q = 40
Correct B. P = 25, Q = 35
C. P = 30, Q = 30
D. P = 35, Q = 25

Correct Answer: B

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Question 15
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption function is C = 500 + 0.8Y, the investment function is I = 100 + 0.2Y, the government sp\ending function is G = 200, the export function is X = 1000, and the import function is M = 500, what is the country's GDP?
A. ₦10000
B. ₦12000
Correct C. ₦15000
D. ₦18000

Correct Answer: C

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Question 16
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 price at which the quantity demanded is 60?
A. ₦20
B. ₦30
Correct C. ₦40
D. ₦50

Correct Answer: C

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Question 17
A firm's revenue function is given by R(x) = 100x - 2x^2, where x is the number of units produced and sold. If the firm produces and sells 20 units, what is the total revenue?
A. ₦1,600
B. ₦1,800
Correct C. ₦2,000
D. ₦2,200

Correct Answer: C

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Question 18
The supply curve for 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 0.8, what is the price at which the quantity supplied is 80?
A. ₦20
B. ₦30
C. ₦40
Correct D. ₦50

Correct Answer: D

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Question 19
A central bank uses the money multiplier formula to calculate the money supply in an economy. If the reserve requirement is 20%, the currency ratio is 0.8, and the excess reserves are ₦100 million, what is the money supply?
A. ₦1,200,000,000
B. ₦1,500,000,000
Correct C. ₦1,800,000,000
D. ₦2,000,000,000

Correct Answer: C

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Question 20
A firm's \cost function is given by C(x) = 50x + 2x^2, where x is the number of units produced. If the firm produces 20 units, what is the total \cost?
A. ₦1,600
B. ₦1,800
Correct C. ₦2,000
D. ₦2,200

Correct Answer: C

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Question 21
A perfectly competitive market has a demand curve that is downward sloping. Which of the following is a characteristic of the demand curve in a perfectly competitive market?
A. It is upward sloping
Correct B. It is downward sloping
C. It is horizontal
D. It is vertical

Correct Answer: B

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Question 22
A country's balance of payments account can be in equilibrium even if its current account is not in equilibrium. Which of the following is a reason for this?
Correct A. Capital account transactions
B. Foreign exchange reserves
C. Trade deficit
D. Trade surplus

Correct Answer: A

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Question 23
A consumer's indifference curve is a graphical representation of the consumer's preferences. Which of the following is a characteristic of an indifference curve?
Correct A. It is downward sloping
B. It is upward sloping
C. It is horizontal
D. It is vertical

Correct Answer: A

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Question 24
Agricultural development in Nigeria has been hindered by several factors. Which of the following is a major factor?
A. Lack of irrigation facilities
B. Lack of fertilizers
C. Lack of mechanization
Correct D. All of the above

Correct Answer: D

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Question 25
The money supply in an economy is determined by the central bank. Which of the following is a tool used by the central bank to control the money supply?
A. Open market operations
B. Reserve requirements
C. Discount rate
Correct D. All of the above

Correct Answer: D

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