POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 100, and its marginal \cost (MC) is 80, what is the firm's optimal output level?
A. 200 units
B. 300 units
C. 400 units
D. 500 units
Question 2
A consumer's utility function is given by U = 2x + 3y. If the prices of x and y are 4 and 5 respectively, what is the consumer's budget constraint?
A. 4x + 5y = 20
B. 4x + 5y = 25
C. 4x + 5y = 30
D. 4x + 5y = 35
Question 3
The demand 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 of the product is given by the equation Qs = 2P - 10, what is the price elasticity of demand at a price of $15?
A. \( \text{Unit elastic} \)
B. \( \text{Inelastic} \)
C. \( \text{Perfectly elastic} \)
D. \( \text{Perfectly inelastic} \)
Question 4
A firm operating under perfect competition faces a market demand curve that is downward-sloping. If the firm's marginal revenue (MR) curve intersects its average revenue (AR) curve at a point where MR > AR, what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will experience a decrease in its average revenue.
Question 5
A country's GDP is ₦1.5 trillion, while its GNP is ₦1.7 trillion. What is the net factor income from abroad?
A. ₦200 billion
B. ₦300 billion
C. ₦400 billion
D. ₦500 billion
Question 6
A firm is considering investing in a new project that has a net present value (NPV) of ₦1,000,000. If the firm's \cost of capital is 10%, what will be the effect on the firm's wealth?
A. The firm's wealth will increase by ₦1,000,000.
B. The firm's wealth will decrease by ₦1,000,000.
C. The firm's wealth will remain unchanged.
D. The firm will experience a decrease in its \cost of capital.
Question 7
A country's balance of payments (BOP) account is in equilibrium when the current account is equal to the capital account. If the country's current account is in deficit, what will be the effect on its capital account?
A. The capital account will increase.
B. The capital account will decrease.
C. The capital account will remain unchanged.
D. The capital account will experience a surplus.
Question 8
A country's agricultural sector is experiencing a supply shock due to a drought. The supply curve shifts to the left, cau\sing the price of agricultural products to increase. What is the effect on the country's GDP?
A. GDP increases
B. GDP decreases
C. GDP remains unchanged
D. GDP increases, but at a slower rate
Question 9
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor increases by 20% and the price of capital increases by 15%, what is the new elasticity of labor with respect to output?
A. 0.5
B. 0.6
C. 0.7
D. 0.8
Question 10
A government's budget shows a revenue of ₦500 billion and an exp\enditure of ₦600 billion. What will be the government's budget deficit?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 11
A firm's production function exhibits increa\sing returns to scale. If the firm's current output is 100 units and its current input is 50 units, what will be its output if it increases its input by 20%?
A. 120 units
B. 140 units
C. 160 units
D. 180 units
Question 12
A country's balance of payments account shows a trade deficit of ₦100 billion. If the country's exchange rate is ₦200 per dollar, what will be the value of its trade deficit in dollars?
A. ₦500 million
B. ₦500 billion
C. ₦500 trillion
D. ₦500 quadrillion
Question 13
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources that could be used to produce another good. Which of the following is an example of an opportunity \cost?
A. The \cost of producing a good
B. The benefit of consuming a good
C. The opportunity \cost of producing a good
D. The \cost of not producing a good
Question 14
A consumer's budget constraint is given by the equation 2Q + 3P = 30, where Q is the quantity consumed and P is the price. If the price of the good is $5, how many units will the consumer consume?
A. 5
B. 6
C. 7
D. 8
Question 15
A country's government is considering a tax on imports. The tax rate is 10% of the value of imports. If the country's imports are $100 billion, what is the revenue generated by the tax?
A. 10
B. 20
C. 30
D. 40

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