POST UTME PAN-ATLANTIC UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of scarcity in economics refers to the
A. inability to produce a good or service
B. inability to meet the wants and needs of society
C. inability to produce a good or service at a given price
D. inability to produce a good or service at a given quantity
Question 2
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What will happen to the equilibrium price and quantity?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases
Question 3
The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit
A. increases
B. decreases
C. remains cons\tant
D. becomes negative
Question 4
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. If the exchange rate depreciates by 10% and the export price increases by 15%, while the import price decreases by 5%, will Nigeria's balance of payments improve?
A. Yes
B. No
C. Maybe
D. Insufficient information
Question 5
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its net foreign exchange earnings?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 6
A government imposes a tax of ₦10 per unit on a firm that produces a homogeneous product. If the firm's supply curve is given by \( Q = 100 + 2P \), what is the firm's new supply curve after the tax is imposed?
A. \( Q = 100 + 2P - 10 \)
B. \( Q = 100 + 2P + 10 \)
C. \( Q = 100 + 2P \times 10 \)
D. \( Q = 100 + 2P / 10 \)
Question 7
A firm is faced with a budget constraint of ₦100,000. If it allocates ₦50,000 to labor and ₦30,000 to capital, what will be the opportunity \cost of hiring one more worker?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 8
Suppose the Nigerian government implements a policy to increase the price of a commodity by 20%. If the demand for the commodity is given by the equation \( Q = 100 - 2P \), where ( Q ) is the quantity demanded and ( P ) is the price, what will be the new quantity demanded?
A. 80
B. 100
C. 120
D. 140
Question 9
A firm's elasticity of demand is given by the equation E = 0.5P, where E is the elasticity and P is the price. If the firm's price is ₦50, what is its elasticity of demand?
A. 0.25
B. 0.5
C. 0.75
D. 1.0
Question 10
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Question 11
Suppose the Nigerian government imposes a tariff on imported goods. If the tariff is 20% and the price of the imported good is 100, what will be the new price of the good?
A. 80
B. 100
C. 120
D. 140
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 10% and 20% respectively, the new level of output will be
A. 12.5
B. 15
C. 20
D. 25
Question 13
A firm's revenue function is given by R(x) = 2x^2 + 5x - 3. If the firm's marginal revenue is 10 when x = 5, what is the firm's total revenue?
A. ₦1250
B. ₦1500
C. ₦1750
D. ₦2000
Question 14
Agricultural sector in Nigeria is characterized by low productivity and low income. Which of the following policies would be most effective in increa\sing agricultural productivity?
A. Providing subsidies to farmers
B. Investing in irrigation systems
C. Improving access to credit for farmers
D. Increa\sing the use of chemical fertilizers
Question 15
A firm's demand curve is given by \( Q = 100 - 2P \). If the firm's marginal revenue curve is given by \( MR = 200 - 2Q \), what is the firm's marginal \cost curve?
A. \( MC = 10 + 2Q \)
B. \( MC = 10 - 2Q \)
C. \( MC = 20 + 2Q \)
D. \( MC = 20 - 2Q \)

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