POST UTME NILE UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country has a budget constraint given by B = 1000 + 0.5Y, where B is the government exp\enditure and Y is the income. If the government exp\enditure is 1200, what is the income?
A. 2000
B. 2200
C. 2400
D. 2600
Question 2
A country has a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. U\sing the concept of balance of payments, explain why the trade deficit may not be the same as the current account deficit.
A. The trade deficit may not be the same as the current account deficit because the current account deficit includes net factor income.
B. The trade deficit may not be the same as the current account deficit because the current account deficit includes net transfers.
C. The trade deficit may not be the same as the current account deficit because the current account deficit includes net investment income.
D. The trade deficit may not be the same as the current account deficit because the current account deficit includes net income from abroad.
Question 3
A firm's \cost function is given by ( C(q) = 2q^2 + 5q + 10 ). If the firm produces 10 units, what is the total \cost?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 4
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (x, y) = (100, 50)
B. (x, y) = (80, 60)
C. (x, y) = (120, 40)
D. (x, y) = (90, 55)
Question 5
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports (X) are ₦100 billion, imports (M) are ₦80 billion, foreign investment (F) is ₦20 billion, and domestic investment (I) is ₦15 billion, calculate the balance of payments.
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 6
A country has a budget constraint given by B = 1000 + 0.5Y, where B is the government exp\enditure and Y is the income. If the government exp\enditure is 1200, what is the income?
A. 2000
B. 2200
C. 2400
D. 2600
Question 7
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is ₦50, what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 8
A country's balance of payments (BOP) is a statistical statement that summarizes its economic transactions with the rest of the world over a specific period of time. The BOP includes
A. current account and capital account
B. current account and financial account
C. capital account and financial account
D. current account and trade account
Question 9
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (x, y) = (100, 50)
B. (x, y) = (80, 60)
C. (x, y) = (120, 40)
D. (x, y) = (90, 55)
Question 10
A country has a GDP of ₦10 trillion and a GNP of ₦11 trillion. U\sing the concept of national income accounting, explain why the GNP may be higher than the GDP.
A. The GNP may be higher than the GDP because the GNP includes net factor income from abroad.
B. The GNP may be higher than the GDP because the GNP includes net transfers from abroad.
C. The GNP may be higher than the GDP because the GNP includes net investment income from abroad.
D. The GNP may be higher than the GDP because the GNP includes net income from abroad.
Question 11
The Nigerian government has implemented a tax on imported goods to raise revenue. However, the tax has been criticized for being regressive because it disproportionately affects low-income households. U\sing the concept of elasticity of demand, explain why the tax may be regressive.
A. The tax may be regressive because low-income households have a higher propensity to consume imported goods.
B. The tax may be regressive because low-income households have a lower elasticity of demand for imported goods.
C. The tax may be regressive because low-income households have a higher income elasticity of demand for imported goods.
D. The tax may be regressive because low-income households have a lower income elasticity of demand for imported goods.
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total \cost of producing 16 units of output.
A. ₦1600
B. ₦3200
C. ₦6400
D. ₦12800
Question 13
A country has a production function given by Q = 100L + 20K, where Q is the total output and L and K are labor and capital respectively. If the country has 10 units of labor and 5 units of capital, what is the total output?
A. 1000
B. 1100
C. 1200
D. 1300
Question 14
A firm's demand function is given by \( Q = 100 - 2P \). If the firm's supply function is given by \( Q = 2P - 10 \), what is the equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 15
A firm is a pure monopolist with a demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is cons\tant at ₦50. What is the firm's profit-maximizing price \( P* \)?
A. P* = 25
B. P* = 30
C. P* = 35
D. P* = 40

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