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POST UTME GREENFIELD UNIVERSITY 2023 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 2023 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1

Determine the value of x in the equation \( \log_{10} \( x^2 \ \) = 4 ).

A. 10

B. 100

C. 1000

Correct D. 10000

Correct Answer: D

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Question 2

A firm operating in a perfectly competitive market has a demand curve given by \( Q = 100 - 2P \). If the firm produces 50 units, what is the price elasticity of demand?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 3

A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?

A. Increase

Correct B. Decrease

C. No change

D. Uncertain

Correct Answer: B

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Question 4

A monopolist faces a demand curve given by \( Q = 100 - 2P \) and a marginal revenue curve given by \( MR = 20 - 2Q \). What is the profit-maximizing quantity?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 5

A firm has a total revenue function given by \( TR = 100Q - 2Q^2 \) and a total \cost function given by \( TC = 50Q + 2Q^2 \). What is the profit-maximizing quantity?

A. 10

B. 20

Correct C. 30

D. 40

Correct Answer: C

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Question 6

The demand curve for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply curve is given by the equation Qs = 2P - 100, where Qs is the quantity supplied, what is the equilibrium price?

A. ₦50

B. ₦75

Correct C. ₦100

D. ₦125

Correct Answer: C

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Question 7

A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function given by C(Q) = 2Q^2 + 100Q. What is the profit-maximizing quantity?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 8

The production function for a firm 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 wants to produce 100 units of output, how many units of labor should it hire?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 9

A consumer has a budget of ₦1000 and faces a price of ₦200 for a good. If the consumer's indifference curve is given by the equation U = 2x + 3y, where x is the quantity of the good consumed and y is the quantity of a complementary good, what is the optimal quantity of the good consumed?

A. 2

Correct B. 3

C. 4

D. 5

Correct Answer: B

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Question 10

A firm is considering two different production techno\logies: one that requires 2 units of labor and 1 unit of capital to produce 1 unit of output, and another that requires 1 unit of labor and 2 units of capital to produce 1 unit of output. If the firm wants to produce 100 units of output, which techno\logy should it choose?

Correct A. Techno\logy 1

B. Techno\logy 2

C. Both techno\logies are equally efficient

D. Neither techno\logy is efficient

Correct Answer: A

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Question 11

The production function is given by Q = 2L^0.5K^0.5. If the price of labor \( P_L \) is ₦100 and the price of capital \( P_K \) is ₦200, calculate the opportunity \cost of labor in terms of capital.

Correct A. 0.5K

B. K^0.5

C. 2L^0.5

D. 4L

Correct Answer: A

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Question 12

The demand function for a product is given by Q = 100 - 2P. The supply function is given by Q = 2P - 50. Find the equilibrium price and quantity.

A. ₦50, Q = 50

Correct B. ₦75, Q = 75

C. ₦100, Q = 100

D. ₦125, Q = 125

Correct Answer: B

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Question 13

The National Bureau of Statistics (NBS) releases the following data on the Nigerian economy: GDP = ₦10 trillion, GNP = ₦12 trillion, and the population of Nigeria is 200 million. Calculate the per capita income.

A. ₦60,000

Correct B. ₦80,000

C. ₦100,000

D. ₦120,000

Correct Answer: B

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Question 14

A farmer produces wheat and corn on his farm. The production functions are given by Q_w = 2L_w^0.5K_w^0.5 and Q_c = 3L_c^0.5K_c^0.5, respectively. If the price of wheat \( P_w \) is ₦150 and the price of corn \( P_c \) is ₦200, calculate the opportunity \cost of wheat in terms of corn.

A. 1.5K_c

Correct B. 2K_c

C. 2.5K_c

D. 3K_c

Correct Answer: B

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Question 15

The government of Nigeria wants to increase agricultural production. To achieve this, it decides to increase the price of fertilizers by 20%. Calculate the percentage change in the quantity of fertilizers demanded.

Correct A. -10%

B. -5%

C. 0%

D. 5%

Correct Answer: A

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Question 16

In a perfectly competitive market, the demand curve for a firm's product is its

Correct A. marginal revenue curve

B. average revenue curve

C. marginal \cost curve

D. average \cost curve

Correct Answer: A

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Question 17

A country's balance of payments account can be in equilibrium even if its current account is not in equilibrium. Explain.

Correct A. True

B. False

C. Only if the capital account is in equilibrium

D. Only if the current account is in equilibrium

Correct Answer: A

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Question 18

The demand for a product is said to be elastic if the percentage change in the quantity demanded is greater than the percentage change in the price. What is the formula for elasticity of demand?

Correct A. %ΔQd/%ΔP

B. %ΔP/%ΔQd

C. %ΔQd + %ΔP

D. %ΔQd - %ΔP

Correct Answer: A

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Question 19

A government may use fiscal policy to reduce unemployment by increa\sing government exp\enditure. What are the two main channels through which this increase in government exp\enditure affects aggregate demand?

Correct A. Multiplier effect and income effect

B. Multiplier effect and substitution effect

C. Income effect and substitution effect

D. Multiplier effect and crowding out effect

Correct Answer: A

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Question 20

A country imposes a tariff on imported goods to protect its domestic industry. What is the effect of this tariff on the domestic price of the good?

Correct A. The domestic price increases

B. The domestic price decreases

C. The domestic price remains the same

D. The domestic price may increase or decrease dep\ending on the elasticity of demand

Correct Answer: A

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Question 21

The scarcity of a particular good in a market can be attributed to the following factors EXCEPT:

A. Increase in demand

B. Decrease in supply

C. Increase in price

Correct D. Decrease in income

Correct Answer: D

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Question 22

A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. However, this calculation does not include the value of:

Correct A. Imports

B. Exports

C. Intermediate goods

D. Capital goods

Correct Answer: A

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Question 23

A firm's opportunity \cost of producing a good is the:

Correct A. Value of the next best alternative

B. Value of the good itself

C. Value of the inputs used to produce the good

D. Value of the good in terms of other goods

Correct Answer: A

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Question 24

The balance of payments (BOP) accounts record a country's international transactions. The current account of the BOP includes the following items EXCEPT:

A. Exports

B. Imports

C. Investment income

Correct D. Capital transfers

Correct Answer: D

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Question 25

The money supply in an economy is influenced by the following factors EXCEPT:

A. Reserve requirements

B. Open market operations

C. Discount rate

Correct D. Government sp\ending

Correct Answer: D

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