POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The elasticity of demand is measured by the percentage change in the quantity demanded of a good in response to a 1% change in the price of the good. If the demand for a good is elastic, a 1% increase in the price of the good will result in a
A. less than 1% decrease in the quantity demanded
B. greater than 1% decrease in the quantity demanded
C. 1% decrease in the quantity demanded
D. no change in the quantity demanded
Question 2
The Nigerian government has introduced a new tax policy to increase revenue. The policy includes a 10% increase in the value-added tax (VAT) rate. Which of the following is a likely consequence of this policy?
A. An increase in the price of goods and services
B. A decrease in the price of goods and services
C. No change in the price of goods and services
D. An increase in the revenue of the government
Question 3
A government's fiscal policy is given by the equation B = T + I, where B is the budget, T is tax revenue, and I is government sp\ending. If the government's tax revenue is ₦500 and its sp\ending is ₦1000, what is the government's budget?
A. ₦1500
B. ₦2000
C. ₦2500
D. ₦3000
Question 4
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's budget constraint is 10x + 5y = 50, and the consumer's initial \endowment is (x,y) = (2,5), what is the consumer's optimal consumption bundle?
A. (5,10)
B. (10,5)
C. (15,0)
D. (0,15)
Question 5
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. x = 100, y = 50
B. x = 50, y = 100
C. x = 200, y = 20
D. x = 150, y = 30
Question 6
A firm is considering the introduction of a new product. The firm's production \costs are ₦100,000 and the selling price of the product is ₦150,000. If the firm produces 100 units of the product, what is the total revenue?
A. ₦15,000,000
B. ₦12,000,000
C. ₦10,000,000
D. ₦8,000,000
Question 7
A country's balance of payments is in equilibrium when the value of its exports equals the value of its
A. imports
B. exports
C. capital inflows
D. capital outflows
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total \cost of producing 4 units of output.
A. ₦800
B. ₦1000
C. ₦1200
D. ₦1600
Question 9
The Gross Domestic Product (GDP) of a country is the total value of all final goods and services produced within the country's borders during a given period of time, usually a year. GDP can be calculated u\sing the following formula:
A. \( GDP = C + I + G + X - M \)
B. \( GDP = C + I + G + \( X - M \ \) )
C. \( GDP = C + I + G + X + M \)
D. \( GDP = C + I + G - \( X - M \ \) )
Question 10
A consumer's utility function is given by U = 2x + 3y. If the price of x is ₦50 per unit and the price of y is ₦75 per unit, calculate the consumer's budget constraint.
A. x + 1.5y = 15
B. x + 2y = 20
C. 2x + 3y = 30
D. 3x + 4y = 40
Question 11
A firm is considering the introduction of a new product. The firm's production \costs are ₦100,000 and the selling price of the product is ₦150,000. If the firm produces 100 units of the product, what is the profit?
A. ₦5,000,000
B. ₦4,000,000
C. ₦3,000,000
D. ₦2,000,000
Question 12
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer has a budget of ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 13
A country's balance of payments is given by the following table. What is the current account balance?
A. ₦1 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 14
The Nigerian government has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers. Which of the following is a likely consequence of this policy?
A. An increase in agricultural production
B. A decrease in agricultural production
C. No change in agricultural production
D. An increase in the price of agricultural products
Question 15
A monopoly firm faces a demand curve given by p = 10 - 2q. If the firm's marginal \cost is cons\tant at ₦5, what is the firm's optimal quantity?
A. 5
B. 10
C. 15
D. 20

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