POST UTME NOUN 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a country with a fixed money supply and a moderate rate of inflation. If the central bank increases the reserve requirement for commercial banks, what will be the effect on the money supply?
A. The money supply will decrease
B. The money supply will increase
C. The money supply will remain unchanged
D. The effect on the money supply is uncertain
Question 2
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 employs 4 units of labor and 9 units of capital, calculate the firm's current total \cost.
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 3
A government imposes a tax of ₦10 on a commodity. If the demand function is given by \( Q^d = 100 - 2P \) and the supply function is given by \( Q^s = 2P - 10 \), find the new equilibrium price and quantity.
A. ₦55
B. ₦65
C. ₦75
D. ₦85
Question 4
Consider a country with a GDP of ₦10 trillion and a GNP of ₦12 trillion. If the country's population is 200 million, calculate the per capita GDP and per capita GNP.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 5
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. 30%
C. 40%
D. 50%
Question 6
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. 1000
B. 1200
C. 1500
D. 1800
Question 7
Suppose the demand function for a commodity is given by \( Q^d = 100 - 2P \) and the supply function is given by \( Q^s = 2P - 10 \). Find the equilibrium price and quantity u\sing the diagram below.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 8
A firm is considering two different production techno\logies: one that uses a lot of labor and another that uses a lot of capital. If the firm's production function is characterized by decrea\sing returns to scale, what will be the effect on the firm's output if it increases the amount of labor used?
A. The output will increase
B. The output will decrease
C. The output will remain unchanged
D. The effect on the output is uncertain
Question 9
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦50, calculate the firm's current revenue.
A. ₦2,000
B. ₦2,500
C. ₦3,000
D. ₦3,500
Question 10
The production function is given by Q = 2L^0.5K^0.5. If the price of labor is $10 per unit and the price of capital is $20 per unit, and if the firm is currently producing 100 units of output, then the total \cost of production is
A. ₦2000
B. ₦4000
C. ₦6000
D. ₦8000
Question 11
A central bank increases the money supply by 10%. What is the expected effect on the price level?
A. 5% increase
B. 10% increase
C. 15% increase
D. 20% increase
Question 12
A firm's production function is given by \( Q = 2L + 3K \). If the prices of labor and capital are ₦10 and ₦20 respectively, find the firm's optimal input mix.
A. L=10, K=5
B. L=5, K=10
C. L=15, K=10
D. L=10, K=15
Question 13
A firm's demand function is given by Q = 100 - 2P. If the firm's supply function is Q = 2P - 5, calculate the equilibrium price and quantity.
A. P = ₦20, Q = 50
B. P = ₦25, Q = 75
C. P = ₦30, Q = 100
D. P = ₦35, Q = 125
Question 14
Calculate the value of the elasticity of demand for a commodity whose price elasticity of demand is 0.5 and whose price increases by 10%.
A. 0.5
B. 0.6
C. 0.7
D. 0.8
Question 15
Consider a country with the following national income accounts: C = ₦1,000, I = ₦500, G = ₦200, X = ₦300, M = ₦400. Calculate the country's GDP per capita.
A. ₦2,500
B. ₦2,600
C. ₦2,700
D. ₦2,800

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