POST UTME MADONNA UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The Nigerian government has implemented a policy to increase agricultural production by 20% within the next two years. If the current agricultural production is ₦100 billion, what will be the total value of agricultural production after two years?
A. ₦120 billion
B. ₦125 billion
C. ₦130 billion
D. ₦135 billion
Question 2
The central bank of Nigeria has increased the reserve requirement for commercial banks. What is the effect of this policy on the money supply?
A. Increase in money supply
B. Decrease in money supply
C. No effect on money supply
D. Increase in interest rates
Question 3
A government imposes a tax of ₦10 on a product. If the demand for the product is given by the equation q = 100 - 2p and the supply is given by the equation q = 50 + p, what is the equilibrium price?
A. ₦15
B. ₦20
C. ₦25
D. ₦30
Question 4
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. What is the consumer's budget constraint?
A. 2A + 3B = 1000
B. A + 2B = 1000
C. 2A + B = 1000
D. A + B = 1000
Question 5
A firm produces two goods, A and B. The production function for good A is Q_A = 10L + 5K, where L is labor and K is capital. The production function for good B is Q_B = 8L + 3K. If the firm has 100 units of labor and 50 units of capital, how many units of good A and good B will the firm produce?
A. Good A: 500, Good B: 400
B. Good A: 600, Good B: 300
C. Good A: 700, Good B: 200
D. Good A: 800, Good B: 100
Question 6
A firm produces two goods: A and B. The production of good A requires 2 units of labor and 3 units of capital, while the production of good B requires 3 units of labor and 2 units of capital. If the firm has 12 units of labor and 15 units of capital, how many units of good A can it produce?
A. 6
B. 8
C. 10
D. 12
Question 7
The government of Nigeria has implemented a policy to increase economic growth by investing in infrastructure. However, this policy has led to a decrease in the production of other goods. What is the opportunity \cost of this policy?
A. The decrease in production of other goods
B. The increase in production of infrastructure
C. The decrease in income of workers
D. The increase in prices of goods
Question 8
A consumer has a budget of ₦10,000 to sp\end on two goods: a smartphone and a laptop. The price of the smartphone is ₦5,000 and the price of the laptop is ₦8,000. If the consumer buys the smartphone, how much money will they have left to sp\end on the laptop?
A. ₦0
B. ₦2,000
C. ₦5,000
D. ₦10,000
Question 9
The Central Bank of Nigeria (CBN) uses the following monetary policy instrument to control inflation: Open Market Operations (OMO), Reserve Requirements, and the Discount Rate. Which of the following is NOT a primary objective of monetary policy?
A. Price stability
B. Full employment
C. Financial stability
D. Economic growth
Question 10
A monopolist is producing a good with a demand function Q = 100 - P and a \cost function C = 2Q^2 + 100Q. If the firm's marginal revenue is equal to its marginal \cost, what is the price at which the firm will produce?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 11
The demand for a product is given by the equation \( Q_d = 100 - 2P \), where \( Q_d \) is the quantity demanded and ( P ) is the price. If the supply function is \( Q_s = 50 + 3P \), find the equilibrium price and quantity.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 12
A firm's revenue function is given by the equation R(q) = 100q - 2q^2. If the firm produces 50 units of the product, what is the marginal revenue?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 13
The Nigerian government has implemented a policy to increase industrial production by 15% within the next three years. If the current industrial production is ₦150 billion, what will be the total value of industrial production after three years?
A. ₦172.5 billion
B. ₦175 billion
C. ₦177.5 billion
D. ₦180 billion
Question 14
A firm's production function is given by Q = 2L^0.5H^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (H) is ₦200 per unit, calculate the total \cost of producing 4 units of output.
A. ₦1200
B. ₦1600
C. ₦2400
D. ₦3200
Question 15
The following diagram shows the supply and demand curves for a commodity. If the price elasticity of supply is 2 and the price elasticity of demand is 0.5, what is the change in quantity supplied and quantity demanded when the price increases by 10%?
A. Quantity Supplied: 10%, Quantity Demanded: 5%
B. Quantity Supplied: 5%, Quantity Demanded: 10%
C. Quantity Supplied: 15%, Quantity Demanded: 15%
D. Quantity Supplied: 20%, Quantity Demanded: 20%

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