POST UTME IGBINEDION UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A perfectly competitive market is characterized by a large number of firms producing a homogeneous product. What is the term for the price at which a firm is willing and able to produce a given quantity of a good?
A. Supply Curve
B. Demand Curve
C. Marginal Revenue
D. Marginal Cost
Question 2
A country's GDP at market price is ₦10,000,000,000. If the country's net factor income from abroad is ₦2,000,000,000, what is the country's GDP at factor \cost?
A. ₦8,000,000,000
B. ₦10,000,000,000
C. ₦12,000,000,000
D. ₦14,000,000,000
Question 3
A central bank uses monetary policy to stabilize the economy. Which of the following is a tool of monetary policy?
A. Fiscal policy
B. Monetary policy
C. Supply-side policy
D. Demand-side policy
Question 4
A country's balance of payments accounts show a trade deficit of $100 million. What does this indicate?
A. The country is experiencing a recession
B. The country is experiencing a trade surplus
C. The country is experiencing a trade deficit
D. The country's currency is overvalued
Question 5
A firm's production function is given by Q = 3L^0.5K^0.5, where L and K are the quantities of labor and capital respectively. If the firm's \cost function is given by C = 150L + 250K, what is the firm's optimal input bundle?
A. L = 9, K = 16
B. L = 16, K = 9
C. L = 25, K = 16
D. L = 16, K = 25
Question 6
A firm's supply function is given by Q = 2P - 10. If the price of the good is ₦20, how many units of the good will the firm supply?
A. 10
B. 20
C. 30
D. 40
Question 7
A country's national income is calculated as the sum of all income earned by its citizens. Which of the following is NOT a component of a country's national income?
A. Wages and salaries
B. Rent and interest
C. Depreciation of capital assets
D. Transfer payments
Question 8
A market is in equilibrium with a price of ₦50 and a quantity of 100 units. If the demand curve is given by Qd = 200 - 2P and the supply curve is given by Qs = 2P - 100, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5, where L and K are the quantities of labor and capital respectively. If the firm's \cost function is given by C = 100L + 200K, what is the firm's optimal input bundle?
A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 9
D. L = 9, K = 16
Question 10
The Nigerian government has implemented a policy to increase agricultural production. Which of the following policies is likely to have the highest impact on agricultural production?
A. Subsidy on fertilizers
B. Subsidy on irrigation equipment
C. Extension services
D. Market information services
Question 11
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 excludes the value of intermediate goods and services. What is the term for this exclusion?
A. Value Added
B. Gross National Product
C. Net National Product
D. Implicit Deflator
Question 12
A firm is considering whether to invest in a new project that has a net present value (NPV) of ₦1,500,000. If the firm's \cost of capital is 12% per annum, what is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%
Question 13
A market is in equilibrium with a price of ₦75 and a quantity of 150 units. If the demand curve is given by Qd = 300 - 3P and the supply curve is given by Qs = 3P - 150, what is the price elasticity of demand?
A. 1.5
B. 2
C. 2.5
D. 3
Question 14
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input increases by 25% and its capital input remains cons\tant, what is the percentage change in the quantity produced?
A. 6.25%
B. 12.5%
C. 25%
D. 50%
Question 15
Consider a consumer with an indifference curve that is downward-sloping and convex to the origin. If the consumer's income increases by 20% and the price of the good decreases by 15%, what is the likely effect on the consumer's optimal consumption bundle?
A. The consumer will consume more of the good.
B. The consumer will consume less of the good.
C. The consumer's optimal consumption bundle will remain unchanged.
D. The consumer will switch to a different good.

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