POST UTME SUMMIT UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, find the output.
A. 20
B. 30
C. 40
D. 50
Question 2
A country's balance of payments (BOP) accounts are given by the following equations: BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are valued at ₦100 billion and its imports are valued at ₦120 billion, what is the country's balance of payments?
A. ₦20 billion surplus
B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit
Question 3
The government of Nigeria has implemented a policy to increase the production of rice by 20% in the next year. If the current price of rice is ₦100 per ki\logram, what is the expected price of rice in the next year?
A. ₦120
B. ₦110
C. ₦100
D. ₦90
Question 4
The government of a country imposes a tax on a particular commodity. The supply curve of the commodity is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price of the commodity. The demand curve of the commodity is given by Q = 200 - 3P. If the government imposes a tax of ₦10 per unit of the commodity, what will be the new equilibrium price of the commodity?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase
B. Decrease
C. No effect
D. Uncertain
Question 6
A firm's demand for labor is given by the equation Qd = 100L^\( -0.5 \), where Qd is the quantity of labor demanded and L is the wage rate. If the wage rate increases by 20%, what is the percentage change in the quantity of labor demanded?
A. -10%
B. -5%
C. 0%
D. 10%
Question 7
The government of Nigeria has implemented a policy to reduce the inflation rate by 5% in the next year. If the current inflation rate is 10%, what is the expected inflation rate in the next year?
A. 5%
B. 7.5%
C. 10%
D. 12.5%
Question 8
A central bank uses open market operations to increase the money supply. What is the effect on the interest rate?
A. The interest rate increases
B. The interest rate decreases
C. The interest rate remains unchanged
D. The interest rate becomes negative
Question 9
The GNP of a country is given by the equation GNP = GDP + (net factor income from abroad). If the GDP is ₦2000 and the net factor income from abroad is ₦500, find the GNP.
A. ₦2500
B. ₦3000
C. ₦3500
D. ₦4000
Question 10
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 12, what is the consumer's optimal bundle of goods?
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 4, y = 0
D. x = 0, y = 4
Question 11
Agricultural development in Nigeria has been hindered by the lack of access to credit facilities for farmers. Which of the following government policies would most likely address this issue?
A. Establishment of a state-owned bank to provide credit facilities to farmers
B. Introduction of a cash crop subsidy program to encourage farmers to grow high-value crops
C. Implementation of a crop insurance program to mitigate the risks associated with farming
D. Creation of a farmers' cooperative to pool resources and negotiate better prices for their produce
Question 12
The GDP of a country is given by the equation GDP = C + I + G + \( X - M \), where C is the consumption, I is the investment, G is the government sp\ending, X is the exports and M is the imports. If the consumption is ₦500, the investment is ₦200, the government sp\ending is ₦300, the exports are ₦400 and the imports are ₦200, find the GDP.
A. ₦1500
B. ₦2000
C. ₦2500
D. ₦3000
Question 13
Consider a firm operating in a perfectly competitive market. If the firm's supply curve is given by Q = 100 + 2P, and the market price is P = 50, what is the firm's profit-maximizing output?
A. 50
B. 100
C. 150
D. 200
Question 14
A firm's production function is given by Q = 2L^2 + 3K, where L is labor and K is capital. If the firm's \cost function is given by C = 10L + 20K, what is the firm's profit-maximizing level of labor?
A. 5
B. 10
C. 15
D. 20
Question 15
The elasticity of demand for a commodity is measured by the percentage change in the quantity demanded in response to a given percentage change in the price of the commodity. If the demand for a commodity is elastic, what will happen to the total revenue of the firm if the price of the commodity increases by 10%?
A. Total revenue will increase by 10%
B. Total revenue will decrease by 10%
C. Total revenue will increase by 20%
D. Total revenue will decrease by 20%

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