POST UTME PAN-ATLANTIC UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government imposes a tax of ₦10 on a product. If the pre-tax price is ₦50 and the demand curve is given by Qd = 100 - 2P, what is the new equilibrium price?
A. ₦40
B. ₦45
C. ₦50
D. ₦55
Question 2
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the net factor income from abroad?
A. ₦20 billion
B. ₦10 billion
C. ₦5 billion
D. ₦15 billion
Question 3
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 wants to produce 100 units of output, and labor is 16 units, find the value of K.
A. 25
B. 30
C. 35
D. 40
Question 4
A country's balance of payments (BOP) is in equilibrium when the current account and capital account are balanced. If the country's current account deficit is ₦500 billion and the capital account surplus is ₦200 billion, what is the net capital outflow?
A. ₦300 billion
B. ₦400 billion
C. ₦500 billion
D. ₦600 billion
Question 5
In the context of returns to scale, what is the relationship between the production function and the scale of production?
A. The production function is homogeneous of degree 1.
B. The production function is homogeneous of degree 2.
C. The production function is homogeneous of degree 3.
D. The production function is homogeneous of degree 4.
Question 6
U\sing the concept of opportunity \cost, explain why a country may choose to import a good even if it can be produced domestically.
A. The opportunity \cost of producing the good domestically is lower than the \cost of importing it.
B. The opportunity \cost of importing the good is lower than the \cost of producing it domestically.
C. The opportunity \cost of producing the good domestically is higher than the \cost of importing it.
D. The opportunity \cost of importing the good is higher than the \cost of producing it domestically.
Question 7
A firm is considering two different production techno\logies: a traditional techno\logy that requires 2 units of labor and 1 unit of capital to produce 1 unit of output, and a modern techno\logy that requires 1 unit of labor and 2 units of capital to produce 1 unit of output. If the firm has 10 units of labor and 20 units of capital available, what is the opportunity \cost of choo\sing the modern techno\logy?
A. 5 units of labor
B. 10 units of labor
C. 15 units of labor
D. 20 units of labor
Question 8
Suppose the demand curve for a product is given by Qd = 100 - 2P and the supply curve is given by Qs = 2P - 10. If the equilibrium price is P = 20, what is the equilibrium quantity?
A. 40
B. 60
C. 80
D. 100
Question 9
A firm is considering two different production techno\logies: a traditional techno\logy that requires 2 units of labor and 1 unit of capital to produce 1 unit of output, and a modern techno\logy that requires 1 unit of labor and 2 units of capital to produce 1 unit of output. If the firm has 10 units of labor and 20 units of capital available, which techno\logy should it choose?
A. Traditional techno\logy
B. Modern techno\logy
C. Both techno\logies are equally efficient
D. Neither techno\logy is efficient
Question 10
A government imposes a tax of ₦5 per unit on a good. If the supply curve is given by the equation Q = 2P - 5, what is the new supply curve after the tax is imposed?
A. Q = 2P - 10
B. Q = 2P - 5
C. Q = 2P + 5
D. Q = 2P - 15
Question 11
In a perfectly competitive market, the equilibrium price and quantity are determined by the intersection of the market demand and supply curves. However, if the government imposes a tax on the producers, the supply curve shifts to the left. What is the effect of this tax on the equilibrium price and quantity?
A. The equilibrium price increases, and the equilibrium quantity decreases.
B. The equilibrium price decreases, and the equilibrium quantity increases.
C. The equilibrium price remains the same, and the equilibrium quantity decreases.
D. The equilibrium price increases, and the equilibrium quantity remains the same.
Question 12
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's consumption is ₦100 billion, investment is ₦20 billion, government sp\ending is ₦30 billion, exports are ₦40 billion, and imports are ₦20 billion, what is the country's GDP?
A. ₦180 billion
B. ₦200 billion
C. ₦220 billion
D. ₦240 billion
Question 13
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 2P. If the monopolist produces 40 units, what is the price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 14
A company in Nigeria produces a product that has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. If the selling price is ₦75 per unit, what is the break-even point?
A. 1,000 units
B. 2,000 units
C. 3,000 units
D. 4,000 units
Question 15
A firm's production function is given by Q = 3L^2K. If the firm's current input levels are L = 4 and K = 3, calculate the firm's marginal product of labor.
A. 12
B. 24
C. 36
D. 48

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: