POST UTME SKYLINE UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is ₦10 trillion and its GNP is ₦11 trillion. What is the country's net factor income from abroad?
A. ₦1 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 2
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 6, y = 0
D. x = 0, y = 6
Question 3
A country's GDP at market price is ₦100 billion. If the government imposes a 10% Value-Added Tax (VAT) on all goods and services, what is the new GDP at market price?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 4
A firm operating under perfect competition faces a market demand curve that is linear and downward-sloping. If the firm's average total \cost (ATC) curve is U-shaped and the market price is $10, what is the firm's profit-maximizing output level?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 5
A firm operating under perfect competition faces a market demand curve that is linear and downward-sloping. If the firm's average total \cost (ATC) curve is U-shaped, what is the likely effect on the firm's profit-maximizing output level if the market price increases?
A. The firm will increase its output level.
B. The firm will decrease its output level.
C. The firm's output level will remain unchanged.
D. The firm will experience a decrease in profit.
Question 6
A firm in a perfectly competitive market is producing at the point where its
A. marginal revenue equals marginal \cost
B. average revenue equals average \cost
C. marginal revenue equals average revenue
D. marginal \cost equals average \cost
Question 7
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the goods are P_x = 2 and P_y = 3, and the consumer has an income of I = 20, what is the optimal bundle of goods that the consumer should purchase?
A. x = 4, y = 2
B. x = 6, y = 1
C. x = 8, y = 0
D. x = 0, y = 10
Question 8
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 15% and the value of imports decreases by 10%, what is the new balance of payments?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 9
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 6, y = 0
D. x = 0, y = 6
Question 10
A firm's demand for labor is given by the equation \( L = 100 - 2P \), where L is the quantity of labor demanded and P is the price of labor. If the price of labor increases by 10%, what is the new quantity of labor demanded?
A. 80
B. 90
C. 100
D. 110
Question 11
The main objective of monetary policy is to
A. control inflation
B. regulate interest rates
C. manage the money supply
D. all of the above
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the marginal product of capital?
A. 1/4
B. 1/2
C. 1
D. 2
Question 13
A firm operating under perfect competition faces a market demand curve that is linear and downward-sloping. If the firm's average total \cost (ATC) curve is U-shaped and the market price is $10, what is the firm's profit-maximizing revenue?
A. $100
B. $200
C. $300
D. $400
Question 14
The money supply in an economy is determined by the
A. central bank
B. commercial banks
C. government
D. private sector
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the marginal product of labor?
A. 1/4
B. 1/2
C. 1
D. 2

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