POST UTME MADONNA UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is downward sloping. What does this imply about the consumer's preferences?
A. The consumer prefers more of good X to good Y.
B. The consumer prefers more of good Y to good X.
C. The consumer is indifferent between good X and good Y.
D. The consumer's preferences are not well-defined.
Question 2
A monopolist's demand curve is downward sloping. What is the likely effect of an increase in the monopolist's fixed \costs on the quantity supplied?
A. Increase
B. Decrease
C. No effect
D. Uncertain
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor increases by 20%, and the price of capital increases by 15%, what is the likely effect on the firm's output?
A. Increase
B. Decrease
C. No effect
D. Uncertain
Question 4
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. What is the effect of this action on the interest rate?
A. The interest rate increases
B. The interest rate decreases
C. The interest rate remains unchanged
D. The interest rate becomes negative
Question 5
A government is considering a policy to reduce poverty in a particular region. The policy involves providing a subsidy to farmers to increase agricultural production. Assuming the subsidy is provided at a rate of 20% of the farmer's revenue, what will be the effect on the equilibrium price and quantity of the good?
A. The equilibrium price will decrease, and the equilibrium quantity will increase
B. The equilibrium price will increase, and the equilibrium quantity will decrease
C. The equilibrium price will remain unchanged, and the equilibrium quantity will increase
D. The equilibrium price will decrease, and the equilibrium quantity will remain unchanged
Question 6
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the value of net factor income from abroad?
A. ₦20 billion
B. ₦10 billion
C. ₦5 billion
D. ₦15 billion
Question 7
A country's balance of payments is in equilibrium when its current account and capital account are equal. What does this imply about the country's exchange rate?
A. The exchange rate is overvalued.
B. The exchange rate is undervalued.
C. The exchange rate is at its equilibrium value.
D. The exchange rate is floating.
Question 8
A firm's budget constraint is given by 2L + 3K = 100. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal level of labor and capital?
A. L = 50, K = 25
B. L = 25, K = 50
C. L = 33, K = 33
D. L = 25, K = 25
Question 9
A country's trade balance is in deficit. What does this imply about the country's exchange rate?
A. The exchange rate is overvalued.
B. The exchange rate is undervalued.
C. The exchange rate is at its equilibrium value.
D. The exchange rate is floating.
Question 10
A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. What is the profit of the firm?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 11
The supply curve for a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, find the percentage change in quantity supplied when the price increases by 20%.
A. 40%
B. 50%
C. 60%
D. 80%
Question 12
A country's inflation rate is 5% per annum. If the nominal interest rate is 10% per annum, what is the real interest rate?
A. 5%
B. 10%
C. 15%
D. 20%
Question 13
A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. What is the profit of the firm?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 14
The following diagram shows the demand and supply curves for a good. What is the equilibrium price of the good?
A. ₦10
B. ₦15
C. ₦20
D. ₦25
Question 15
A consumer's indifference curve is given by U = 2x^0.5y^0.5. If the price of good x increases by 10%, and the price of good y decreases by 5%, what is the likely effect on the consumer's budget line?
A. Increase
B. Decrease
C. No effect
D. Uncertain

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: