POST UTME PAN-ATLANTIC UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Suppose 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 2
A firm's total revenue is given by the equation R(x) = 100x - 2x^2, where x is the number of units produced. If the firm produces 20 units, what is the total revenue?
A. ₦1800
B. ₦2000
C. ₦2200
D. ₦2400
Question 3
A country's GDP is given by the equation Y = C + I + G, where Y is GDP, C is consumption, I is investment, and G is government sp\ending. If the country's GDP is $100 billion, consumption is $60 billion, investment is $20 billion, and government sp\ending is $10 billion, what is the value of the marginal propensity to consume?
A. 0.5
B. 0.6
C. 0.7
D. 0.8
Question 4
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports increases by 20% and the value of imports increases by 15%, calculate the percentage change in the balance of payments.
A. 2.5%
B. 5%
C. 7.5%
D. 10%
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and it is currently producing 100 units of output, what is the firm's current profit-maximizing input bundle?
A. \( L = 400, K = 400 \)
B. \( L = 200, K = 200 \)
C. \( L = 100, K = 100 \)
D. \( L = 50, K = 50 \)
Question 6
A government imposes a tax on imports to reduce the trade deficit. However, the tax also leads to a decrease in the quantity of imports. U\sing the concept of opportunity \cost, explain why the tax may not be effective in reducing the trade deficit.
A. The tax increases the opportunity \cost of importing goods, leading to a decrease in imports.
B. The tax reduces the opportunity \cost of importing goods, leading to an increase in imports.
C. The tax has no effect on the opportunity \cost of importing goods.
D. The tax increases the opportunity \cost of producing goods domestically, leading to an increase in imports.
Question 7
A country's balance of payments is given by the equation BOP = \( X - M \) + \( F - I \), where X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country has exports of ₦100 billion, imports of ₦80 billion, foreign investment of ₦20 billion, and domestic investment of ₦30 billion, what is the balance of payments?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 8
A firm's \cost function is given by the equation C(x) = 50x + 1000, where x is the number of units produced. If the firm produces 15 units, what is the total \cost?
A. ₦2500
B. ₦3000
C. ₦3500
D. ₦4000
Question 9
Consider the following table showing the exports and imports of a country over a period of 5 years:\n\n| Year | Exports | Imports |\n| --- | --- | --- |\n| 2018 | 100 | 80 |\n| 2019 | 120 | 100 |\n| 2020 | 150 | 120 |\n| 2021 | 180 | 140 |\n| 2022 | 200 | 160 |\n\nWhat is the balance of trade for the country in 2022?
A. 20
B. 30
C. 40
D. 50
Question 10
A firm's revenue function is given by R(Q) = 2Q^2 - 10Q + 100. If the firm produces 20 units of the good, what is the total revenue?
A. ₦1,200
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 11
A government is considering impo\sing a tax on a particular good to reduce its consumption. However, the tax also leads to a decrease in the quantity of the good produced. U\sing the concept of supply and demand, explain why the tax may not be effective in reducing the consumption of the good.
A. The tax increases the supply of the good, leading to an increase in consumption.
B. The tax decreases the demand for the good, leading to a decrease in consumption.
C. The tax has no effect on the supply and demand of the good.
D. The tax increases the demand for the good, leading to an increase in consumption.
Question 12
A firm is considering investing in a new project. The project has a fixed \cost of ₦50,000 and a variable \cost of ₦20 per unit produced. The selling price of each unit is ₦30. U\sing the concept of returns to scale, explain why the firm may invest in the project.
A. The firm's average \cost per unit is decrea\sing as output increases.
B. The firm's average \cost per unit is increa\sing as output increases.
C. The firm's average \cost per unit remains cons\tant as output increases.
D. The firm's average \cost per unit is decrea\sing as output decreases.
Question 13
The supply of a commodity is given by the equation Qs = 2000 + 50P, where Qs is the quantity supplied and P is the price. If the price increases by 15%, calculate the percentage change in the quantity supplied.
A. 7.5%
B. 10%
C. 12.5%
D. 15%
Question 14
Consider a country with a trade balance of -₦100 billion and a current account deficit of -₦150 billion. What is the country's net capital outflow?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 15
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q + 100. If the firm produces 20 units of the good, what is the total \cost of production?
A. ₦1,200
B. ₦1,500
C. ₦2,000
D. ₦2,500

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