Exam Body

Year

Subject

Paper Type

POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2020 Economics | Objective

Are you preparing for POST UTME JOSEPH AYO BABALOLA 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.

Practice these randomly selected questions to test your readiness.

Question 1

Consider a country with a GDP of ₦10 trillion and a GNP of ₦12 trillion. What is the difference between the GNP and GDP, and what does this difference represent?

Correct A. ₦2 trillion

B. ₦1 trillion

C. ₦0.5 trillion

D. ₦0.1 trillion

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A consumer has a budget of ₦1000 and faces the following prices for two goods: Good X \costs ₦500 and Good Y \costs ₦300. U\sing the budget constraint, what is the maximum number of units of Good X the consumer can buy?

A. 2

Correct B. 3

C. 4

D. 5

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A country's balance of payments account shows a trade deficit of ₦500 billion. What does this mean for the country's economy?

A. The country is experiencing economic growth.

Correct B. The country is experiencing economic decline.

C. The country is experiencing a trade surplus.

D. The country is experiencing a trade deficit.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, 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

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A country's government is considering a tax on a particular good. The demand for the good is given by Q = 100 - 2P, and the supply of the good is given by Q = 2P. What is the deadweight loss of the tax?

A. ₦10,000

B. ₦20,000

Correct C. ₦30,000

D. ₦40,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

A perfectly competitive market is characterized by which of the following?

A. A \single buyer and seller

Correct B. Many buyers and sellers

C. A \single buyer and many sellers

D. Many buyers and a \single seller

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

The formula for calculating the Gross Domestic Product (GDP) is given by: \( GDP = C + I + G + \( X - M \). What does the term \( C \) represent?

Correct A. Consumption

B. Investment

C. Government Exp\enditure

D. Net Exports

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A diagram of the Nigerian agricultural sector is shown below. Identify the sector that is primarily responsible for the production of crops.

Correct A. Agricultural sector

B. Manufacturing sector

C. Service sector

D. Construction sector

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

The Central Bank of Nigeria (CBN) uses which of the following tools to control inflation?

Correct A. Monetary policy

B. Fiscal policy

C. Supply-side policy

D. Demand-side policy

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

The formula for calculating the National Income (NI) is given by: \( NI = C + I + G \). What does the term \( C \) represent?

Correct A. Consumption

B. Investment

C. Government Exp\enditure

D. Net Exports

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

The government of Nigeria has introduced a new policy to encourage the growth of the agricultural sector. The policy includes providing subsidies to farmers, investing in irrigation systems, and establishing agricultural extension services. However, the policy also includes a provision that allows the government to acquire land from farmers for the purpose of establishing large-scale agricultural projects. Which of the following is a potential consequence of this provision?

A. Increased food production and reduced food prices

Correct B. Displacement of small-scale farmers and loss of livelihoods

C. Improved access to credit and markets for farmers

D. Increased investment in agricultural research and development

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

The balance of payments (BOP) accounts are a statistical record of a country's economic transactions with the rest of the world. Which of the following is a component of the current account in the BOP?

Correct A. Exports of goods and services

B. Imports of goods and services

C. Net factor income from abroad

D. Net transfers

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue and promoting economic growth. The policy includes a new tax on luxury goods and services. Which of the following is a potential effect of this policy?

A. Increased tax revenue and reduced tax evasion

Correct B. Reduced consumption of luxury goods and services

C. Increased investment in the luxury goods and services sector

D. Decreased economic growth and increased unemployment

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

The concept of utility is central to the theory of consumer behavior. Which of the following is a characteristic of a normal good?

A. A good for which the demand curve slopes upward

B. A good for which the demand curve slopes downward

C. A good that is inferior

Correct D. A good that is normal

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

The government of Nigeria has introduced a new policy to promote industrialization and economic growth. The policy includes providing subsidies to industries and investing in infrastructure. Which of the following is a potential effect of this policy?

Correct A. Increased investment in the industrial sector and reduced unemployment

B. Increased prices of industrial goods and reduced consumer welfare

C. Decreased investment in the industrial sector and increased unemployment

D. Increased foreign investment and economic growth

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

Consider a country that imports 80% of its coffee and exports 70% of its cocoa. If the price of coffee increases by 15% and the price of cocoa decreases by 10%, what is the expected change in the country's trade balance?

A. The trade balance will worsen by 12%

Correct B. The trade balance will improve by 8%

C. The trade balance will worsen by 6%

D. The trade balance will improve by 15%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A firm's \cost function is given by ( C(q) = 10q^2 + 20q + 100 ). If the firm produces 20 units, what is the total \cost?

A. ₦600

B. ₦700

Correct C. ₦800

D. ₦900

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A country's GDP is given by \( Y = C + I + G + \( X - M \ \) ). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, what is the country's GDP?

A. ₦1.5 trillion

B. ₦1.6 trillion

Correct C. ₦1.7 trillion

D. ₦1.8 trillion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A firm's production function is given by \( Q = 2L^{0.5}K^{0.5} \). If the firm increases its labor from 100 units to 120 units and keeps capital cons\tant at 100 units, what is the percentage change in output?

A. -10%

B. 0%

Correct C. 10%

D. 20%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A central bank uses the money multiplier to determine the money supply. If the reserve requirement is 10%, the money multiplier is 5, and the initial money supply is ₦100 billion, what is the new money supply after the central bank injects ₦20 billion?

A. ₦500 billion

B. ₦600 billion

Correct C. ₦700 billion

D. ₦800 billion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

A firm's average total \cost curve intersects its average variable \cost curve at the minimum point of the average total \cost curve. What is the implication of this intersection for the firm's production decision?

A. The firm should increase production to take advantage of economies of scale.

B. The firm should decrease production to reduce \costs.

Correct C. The firm should maintain its current level of production.

D. The firm should increase production to reduce \costs.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

A central bank uses open market operations to increase the money supply. What is the effect on the interest rate?

A. The interest rate increases.

Correct B. The interest rate decreases.

C. The interest rate remains unchanged.

D. The interest rate becomes negative.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A country's GDP grows at a rate of 5% per annum, while its population grows at a rate of 2% per annum. What is the effect on the country's GDP per capita?

Correct A. GDP per capita increases at a rate of 3% per annum.

B. GDP per capita remains unchanged.

C. GDP per capita decreases at a rate of 2% per annum.

D. GDP per capita increases at a rate of 7% per annum.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A firm's production function is given by Q = 2L^0.5K^0.5. What is the marginal product of labor?

A. \frac{L^{0.5}K^{0.5}}{L}

B. \frac{L^{0.5}K^{0.5}}{K}

Correct C. \frac{2L^{0.5}K^{0.5}}{L}

D. \frac{2L^{0.5}K^{0.5}}{K}

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A firm's demand curve is given by Q = 100 - 2P. What is the price elasticity of demand?

A. 0.5

Correct B. 1

C. 2

D. 5

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Help others prepare! Share this practice hub:

Chat with Support