POST UTME NILE UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the monopolist's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 2
A firm's revenue function is given by the equation R = 2Q^2, where R is the revenue and Q is the quantity sold. If the firm wants to maximize its revenue, what is the optimal level of quantity sold?
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
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, and the values of C, I, G, X, and M are 20, 15, 10, 25, and 5, respectively, what is the value of the country's net exports?
A. 10
B. 15
C. 20
D. 25
Question 4
A country's balance of payments is said to be in equilibrium when the value of its exports equals the value of its imports. Which of the following is a correct interpretation of this condition?
A. The country is experiencing a trade deficit
B. The country is experiencing a trade surplus
C. The country is experiencing a balance of payments deficit
D. The country is experiencing a balance of payments surplus
Question 5
A country is experiencing a recession. The government increases government sp\ending by ₦1 trillion. What is the likely effect on the aggregate demand curve?
A. Shift to the right
B. Shift to the left
C. No change
D. Uncertain effect
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. $30 billion
C. $40 billion
D. $50 billion
Question 7
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the exports, and M is the imports. If the country's exports are $100 billion and imports are $80 billion, what is the value of the country's balance of payments?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 8
The demand for a good is said to be elastic if a small change in price leads to a large change in quantity demanded. Which of the following is a correct example of an elastic demand?
A. The demand for hou\sing
B. The demand for a luxury good
C. The demand for a necessity good
D. The demand for a service
Question 9
A government's budget constraint is given by the equation B = T + \( I - S \), where B is the budget deficit, T is tax revenue, I is government sp\ending, and S is savings. If the government's tax revenue is 50, and the values of I and S are 30 and 20, respectively, what is the value of the government's budget deficit?
A. 10
B. 15
C. 20
D. 25
Question 10
Consider a firm with a demand function Q = 100 - 2P and a supply function Q = 2P - 100. If the equilibrium price is ₦50, calculate the equilibrium quantity.
A. 100
B. 200
C. 300
D. 400
Question 11
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 price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 40%
C. 60%
D. 80%
Question 12
Consider a country with a balance of payments surplus of ₦500 billion. If the country's foreign exchange reserves are ₦2 trillion, calculate the percentage increase in foreign exchange reserves.
A. 10%
B. 20%
C. 25%
D. 30%
Question 13
A firm has a total revenue of ₦1.2 million and a total \cost of ₦800,000. If the firm's price elasticity of demand is 0.5, calculate the price elasticity of supply.
A. 0.2
B. 0.5
C. 1.0
D. 2.0
Question 14
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is the GDP, C is the consumption, I is the investment, G is the government sp\ending, X is the exports, and M is the imports. If the country's GDP is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $30 billion, exports are $40 billion, and imports are $20 billion, what is the value of the country's GDP?
A. $100 billion
B. $120 billion
C. $140 billion
D. $160 billion
Question 15
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are L = 4 and K = 9, respectively, what is the firm's current output?
A. 12
B. 16
C. 20
D. 24

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