POST UTME NOUN 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is downward sloping and convex to the origin. What does this imply about the consumer's preferences?
A. The consumer prefers more of good X to good Y.
B. The consumer prefers more of good Y to good X.
C. The consumer is indifferent between good X and good Y.
D. The consumer prefers a bundle with more of both goods X and Y.
Question 2
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its balance of trade?
A. ₦5 billion surplus
B. ₦5 billion deficit
C. ₦10 billion surplus
D. ₦10 billion deficit
Question 3
A country's GDP is $100 billion, and its GNP is $120 billion. What is the net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 4
A country's GDP is ₦100 billion. The country's government sp\ends ₦20 billion on goods and services. Find the country's national income.
A. ₦120 billion
B. ₦80 billion
C. ₦100 billion
D. ₦120 billion
Question 5
A perfectly competitive market has a downward-sloping demand curve and a horizontal supply curve. What is the equilibrium price and quantity?
A. Price = $10, Quantity = 100 units
B. Price = $20, Quantity = 200 units
C. Price = $5, Quantity = 50 units
D. Price = $15, Quantity = 150 units
Question 6
A firm's marginal \cost (MC) is given by the equation MC = 2Q + 10, where Q is the quantity produced. If the firm produces 5 units, what is the marginal \cost?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
A country's inflation rate is 10% and its interest rate is 12%. If the country's money supply is ₦100 billion and its velocity of money is 2, what is the country's nominal GDP?
A. ₦2.5 trillion
B. ₦2.8 trillion
C. ₦3.0 trillion
D. ₦3.2 trillion
Question 8
Consider a country that imports 100 units of a good from another country at a price of ₦50 per unit, and exports 50 units of another good to the same country at a price of ₦75 per unit. If the country's balance of payments is in equilibrium, what is the value of the good that the country imports?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 9
A country's GNP is ₦120 billion, its GDP is ₦100 billion, and its net factor income from abroad is ₦10 billion. What is its GNP?
A. ₦100 billion
B. ₦110 billion
C. ₦120 billion
D. ₦130 billion
Question 10
Consider a country with a fixed money supply of ₦100 billion. If the central bank decides to increase the reserve requirement from 10% to 15%, what will be the effect on the money multiplier?
A. The money multiplier will decrease
B. The money multiplier will increase
C. The money multiplier will remain unchanged
D. The money multiplier will be unaffected
Question 11
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, calculate the firm's total \cost of production when L = 4 and K = 9.
A. ₦1,440
B. ₦1,680
C. ₦1,920
D. ₦2,160
Question 12
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are the prices of two goods, Q1 and Q2 are the quantities of the two goods, and I is the income. If the consumer's income is ₦100, the price of good 1 is ₦10, and the price of good 2 is ₦20, what is the maximum quantity of good 1 that the consumer can buy?
A. 5 units
B. 10 units
C. 15 units
D. 20 units
Question 13
A firm is producing a good with a total revenue of ₦10 million and a total \cost of ₦8 million. If the firm's marginal revenue is ₦200,000 and its marginal \cost is ₦150,000, what is the firm's profit-maximizing quantity?
A. 5,000 units
B. 6,000 units
C. 7,000 units
D. 8,000 units
Question 14
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and it currently uses 100 units of labor and 50 units of capital, calculate the firm's current total \cost of production.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 15
The elasticity of demand for a product is 0.5. If the price of the product increases by 10%, what is the percentage change in the quantity demanded?
A. 5%
B. 10%
C. 15%
D. 20%

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