POST UTME NILE UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The money market equilibrium is given by the equation MS = MZ, where MS is the money supply and MZ is the money demand. If the money supply is ₦100 billion and the money demand is ₦80 billion, what is the interest rate?
A. 10%
B. 15%
C. 20%
D. 25%
Question 2
A monopolistically competitive firm faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2Q. Find the firm's equilibrium output and price.
A. Q = 40, P = ₦60
B. Q = 30, P = ₦80
C. Q = 20, P = ₦100
D. Q = 10, P = ₦120
Question 3
A country's national income is calculated as the sum of all factor incomes earned within its borders. However, this measure does not account for the value of unpaid household work, such as childcare and household chores. Which of the following is a limitation of national income as a measure of a nation's economic activity?
A. It does not account for the value of imports.
B. It does not account for the value of exports.
C. It does not account for the value of unpaid household work.
D. It does not account for the value of government sp\ending.
Question 4
A government imposes a tax of ₦10 on a commodity. The demand curve for the commodity is given by Qd = 100 - 2P and the supply curve is given by Qs = 2P - 10. Find the new equilibrium price and quantity.
A. Q = 40, P = ₦60
B. Q = 30, P = ₦80
C. Q = 20, P = ₦100
D. Q = 10, P = ₦120
Question 5
A country's balance of payments is in equilibrium when the current account is equal to the capital account. Explain the concept of the balance of payments and how it is used to determine the equilibrium of the balance of payments.
A. The balance of payments is a statistical statement that summarizes a country's international transactions over a specific period of time.
B. The balance of payments is a statistical statement that summarizes a country's domestic transactions over a specific period of time.
C. The balance of payments is a statistical statement that summarizes a country's international transactions over a specific period of time, and is used to determine the equilibrium of the balance of payments.
D. The balance of payments is a statistical statement that summarizes a country's domestic transactions over a specific period of time, and is used to determine the equilibrium of the balance of payments.
Question 6
A firm's production function is given by Q = 2L^0.5H^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200H = 1000, what is the optimal level of labor and capital to maximize profits?
A. L = 10, H = 5
B. L = 5, H = 10
C. L = 20, H = 2
D. L = 15, H = 3
Question 7
A central bank increases the money supply in an economy by ₦100 million. The money demand function is given by M = 50 + 0.5Y and the money supply function is given by M = 100 + 0.2Y. Find the new equilibrium value of Y.
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 8
A farmer produces 100 units of wheat and 50 units of maize. If the price of wheat is ₦5 per unit and the price of maize is ₦3 per unit, what is the total value of the farmer's output?
A. ₦500
B. ₦550
C. ₦600
D. ₦650
Question 9
The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, this policy has led to an increase in the price of agricultural products. Analyze the impact of this policy on the agricultural sector and the overall economy.
A. The policy has increased agricultural production and reduced the price of agricultural products.
B. The policy has increased agricultural production but has not affected the price of agricultural products.
C. The policy has decreased agricultural production and increased the price of agricultural products.
D. The policy has decreased agricultural production but has not affected the price of agricultural products.
Question 10
The concept of scarcity in economics is best described as:
A. The ability to produce more goods and services with the same amount of resources.
B. The inability to produce more goods and services with the same amount of resources.
C. The ability to produce more goods and services with fewer resources.
D. The inability to produce more goods and services with fewer resources.
Question 11
A firm is producing a good u\sing a production function with the following characteristics: Q = 2L^0.5K^0.5. If the firm increases the quantity of labor from 100 to 120, and keeps the quantity of capital cons\tant at 100, what is the new marginal product of labor?
A. 10
B. 15
C. 20
D. 25
Question 12
A firm's production function is given by Q = 2L^0.5H^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200H = 1000, what is the optimal level of labor and capital to maximize profits?
A. L = 10, H = 5
B. L = 5, H = 10
C. L = 20, H = 2
D. L = 15, H = 3
Question 13
A country's balance of payments is given by the following equations: X = 100 + 2Y, M = 50 + Y, and BOP = X - M. Find the country's balance of payments when Y = ₦50.
A. ₦0
B. ₦10
C. ₦20
D. ₦30
Question 14
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is the country's balance of trade?
A. ₦10 billion surplus
B. ₦10 billion deficit
C. ₦20 billion surplus
D. ₦20 billion deficit
Question 15
A firm is producing a good u\sing a production function with the following characteristics: Q = 2L^0.5K^0.5. If the firm increases the quantity of capital from 100 to 120, and keeps the quantity of labor cons\tant at 100, what is the new marginal product of capital?
A. 10
B. 15
C. 20
D. 25

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