POST UTME NILE UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP at market price is ₦1,500 billion. The implicit deflator is 120. What is the GDP at cons\tant prices?
A. ₦1,200 billion
B. ₦1,500 billion
C. ₦1,800 billion
D. ₦2,000 billion
Question 2
A country's GDP is ₦1,000,000,000,000. If the population is 200 million, what is the per capita income?
A. ₦5,000
B. ₦10,000
C. ₦20,000
D. ₦50,000
Question 3
The government of a country has decided to implement a tax on a particular commodity. The tax is ₦5 per unit of the commodity. If the supply curve of the commodity is given by the equation \( p = 2x + 10 \), what is the new supply curve after the tax is implemented?
A. p = 2x + 15
B. p = 2x + 10
C. p = 2x + 20
D. p = 2x + 25
Question 4
A government imposes a tax of ₦10 on a product. If the demand function for the product is given by q = 100 - 2p, what is the new demand function?
A. q = 100 - 2p
B. q = 100 - 4p
C. q = 100 + 2p
D. q = 100 + 4p
Question 5
A monopolistically competitive firm faces a demand curve with an elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?
A. -20%
B. -10%
C. 0%
D. 10%
Question 6
A central bank implements an expansionary monetary policy by increa\sing the money supply (M) by 10%. If the initial money supply is $100 billion, what is the new money supply?
A. $110 billion
B. $105 billion
C. $100.5 billion
D. $99.5 billion
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units, and the price of labor is $10 per unit, and the price of capital is $20 per unit, what is the optimal combination of labor and capital?
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 15, K = 15
D. L = 25, K = 5
Question 8
A monopolist faces a demand curve with a price elasticity of -3. If the firm increases its price by 15%, what is the percentage change in quantity demanded?
A. -45%
B. -30%
C. -20%
D. -15%
Question 9
Consider a firm that produces a commodity with a demand function given by \( Q_d = 100 - 2P \) and a supply function given by \( Q_s = 2P - 50 \). If the firm's goal is to maximize its profit, find the optimal price and quantity.
A. Price = 25, Quantity = 50
B. Price = 30, Quantity = 70
C. Price = 35, Quantity = 90
D. Price = 40, Quantity = 110
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are 100 and 400, respectively, what is the output?
A. 40
B. 60
C. 80
D. 100
Question 11
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production function for good A is given by Q_A = 2L^0.5K^0.5, where Q_A is the quantity of good A produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 200 units of capital, how many units of good A will it produce?
A. 100
B. 200
C. 300
D. 400
Question 12
Suppose the demand for a commodity is given by the equation \( Q_d = 100 - 2P \), where \( Q_d \) is the quantity demanded and ( P ) is the price. If the supply of the commodity is given by the equation \( Q_s = 2P - 50 \), find the equilibrium price and quantity.
A. Price = 25, Quantity = 50
B. Price = 30, Quantity = 70
C. Price = 35, Quantity = 90
D. Price = 40, Quantity = 110
Question 13
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is 500, investment is 200, government sp\ending is 300, exports are 400, and imports are 200, what is the country's GDP?
A. 1000
B. 1200
C. 1500
D. 1800
Question 14
The demand function for a product is given by q = 100 - 2p. If the supply function is given by q = 2p - 10, what is the equilibrium price and quantity?
A. p = 20, q = 30
B. p = 30, q = 20
C. p = 40, q = 10
D. p = 50, q = 0
Question 15
A country's government has decided to implement a policy to reduce the poverty rate in the country. The poverty rate is currently 30%. If the government implements a policy that increases the GDP per capita by 10%, what is the new poverty rate?
A. 20%
B. 25%
C. 30%
D. 35%

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