POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of international trade in economics implies the exchange of goods and services between countries. Which of the following statements best describes the concept of comparative advantage?
A. A country should produce goods and services in which it has a comparative advantage.
B. A country should produce goods and services in which it has a comparative disadvantage.
C. A country should produce goods and services in which it has a absolute advantage.
D. A country should produce goods and services in which it has a absolute disadvantage.
Question 2
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
C. ₦700 billion
D. ₦800 billion
Question 3
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is 100, consumption is 30, investment is 20, government sp\ending is 10, exports are 20, and imports are 10, what is the value of the country's net exports?
A. 10
B. 20
C. 30
D. 40
Question 4
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?
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
Question 5
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
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
Question 6
The concept of economic planning in Nigeria implies the formulation of policies to achieve economic development. Which of the following statements best describes the role of economic planning?
A. Economic planning is the process of making decisions about the allocation of resources.
B. Economic planning is the process of making decisions about the distribution of income.
C. Economic planning is the process of making decisions about the production of goods and services.
D. Economic planning is the process of making decisions about the consumption of goods and services.
Question 7
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%
B. The trade balance will improve by 8%
C. The trade balance will worsen by 6%
D. The trade balance will improve by 15%
Question 8
The Central Bank of Nigeria (CBN) uses which of the following tools to control inflation?
A. Monetary policy
B. Fiscal policy
C. Supply-side policy
D. Demand-side policy
Question 9
A country's balance of payments is in equilibrium when the current account and capital account are balanced. Which of the following statements is true about the balance of payments?
A. The balance of payments is always in equilibrium.
B. The balance of payments is never in equilibrium.
C. The balance of payments is in equilibrium when the current account is balanced.
D. The balance of payments is in equilibrium when the capital account is balanced.
Question 10
The concept of scarcity in economics implies that the unlimited wants of individuals are in conflict with the limited resources available. Which of the following statements best describes the relationship between wants and resources?
A. Wants are unlimited and resources are unlimited.
B. Wants are limited and resources are unlimited.
C. Wants are unlimited and resources are limited.
D. Wants are limited and resources are limited.
Question 11
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?
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.
Question 12
The concept of returns to scale in production theory implies that as the input factors increase, the output will increase at a rate that is proportional to the increase in input factors. Which of the following statements best describes the relationship between input and output in the case of increa\sing returns to scale?
A. Output increases at a decrea\sing rate compared to the increase in input factors.
B. Output increases at an increa\sing rate compared to the increase in input factors.
C. Output increases at a cons\tant rate compared to the increase in input factors.
D. Output decreases at an increa\sing rate compared to the increase in input factors.
Question 13
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.
B. The country is experiencing economic decline.
C. The country is experiencing a trade surplus.
D. The country is experiencing a trade deficit.
Question 14
The formula for calculating the National Income (NI) is given by: \( NI = C + I + G \). What does the term \( C \) represent?
A. Consumption
B. Investment
C. Government Exp\enditure
D. Net Exports
Question 15
A firm's \cost function is given by the equation C = 2Q^2 + 10Q + 5, where C is the total \cost and Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. 105
B. 115
C. 125
D. 135

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