POST UTME VERITAS UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy involves a 10% tax on all agricultural products sold in the country. If the total revenue from agricultural products before the tax was ₦10 billion, and the tax rate is 10%, what is the new revenue after the tax is imposed?
A. ₦11 billion
B. ₦10.5 billion
C. ₦9.5 billion
D. ₦9 billion
Question 2
A firm's production function is given by Q = 2L^0.5 K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦10000, find the optimal values of L and K.
A. L = 100, K = 25
B. L = 50, K = 50
C. L = 25, K = 100
D. L = 10, K = 200
Question 3
A government imposes a tax of ₦10 per unit on a firm's output. The firm's supply curve is given by Q = 100 - 2P. What is the new supply curve after the tax is imposed?
A. Q = 100 - 2P
B. Q = 100 - 2\( P + 10 \)
C. Q = 100 - 2P - 10
D. Q = 100 - 2P + 10
Question 4
A country's balance of payments (BOP) is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period. Which of the following is a correct statement about the BOP?
A. The BOP is a measure of a country's economic growth.
B. The BOP is a measure of a country's trade deficit or surplus.
C. The BOP is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period.
D. The BOP is a measure of a country's inflation rate.
Question 5
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be used to produce other goods. This is an example of a trade-off between two goods. Which of the following is a correct statement about the opportunity \cost of producing one good?
A. The opportunity \cost is the value of the next best alternative good that could have been produced with the same resources.
B. The opportunity \cost is the value of the good that is given up when producing another good.
C. The opportunity \cost is the value of the good that is produced in excess of the demand.
D. The opportunity \cost is the value of the good that is not produced at all.
Question 6
The balance of payments (BOP) for a country can be represented by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦500 billion and the value of imports is ₦600 billion, what is the balance of payments?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 7
The demand for a good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. The supply of the good is given by the equation Q = 2P + 50, where Q is the quantity supplied and P is the price. If the price is ₦50, what is the quantity demanded and supplied?
A. Qd = 50, Qs = 150
B. Qd = 150, Qs = 50
C. Qd = 100, Qs = 100
D. Qd = 200, Qs = 200
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is given by MC = 5 + 2Q. Find the monopolist's profit-maximizing price and quantity.
A. P = ₦50, Q = 25
B. P = ₦75, Q = 12.5
C. P = ₦100, Q = 0
D. P = ₦25, Q = 50
Question 9
A country's trade surplus is the difference between the value of its exports and imports over a specific period. Which of the following is a correct statement about the trade surplus?
A. The trade surplus is the difference between the value of a country's imports and exports over a specific period.
B. The trade surplus is the difference between the value of a country's exports and imports over a specific period.
C. The trade surplus is the difference between the value of a country's exports and its GDP over a specific period.
D. The trade surplus is the difference between the value of a country's imports and its GDP over a specific period.
Question 10
A firm is producing a good at a cons\tant marginal \cost of ₦100 per unit. The market demand for the good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm is currently producing 50 units, what is the price at which it should sell the good to maximize profits?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the elasticity of output with respect to labor?
A. 0.5
B. 1
C. 2
D. 3
Question 12
The money supply in an economy is given by the equation M = kPY, where M is the money supply, k is a cons\tant, P is the price level, and Y is the national income. If the price level is ₦100, the national income is ₦500 billion, and the cons\tant k is 0.01, what is the money supply?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 13
A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods. If the consumer's utility function is U = x^2 + y^2, what is the consumer's optimal bundle of goods?
A. x = 10, y = 20
B. x = 15, y = 15
C. x = 20, y = 10
D. x = 25, y = 5
Question 14
A government's budget is a plan for how it will raise and sp\end money over a specific period. Which of the following is a correct statement about the budget?
A. The budget is a plan for how a government will raise and sp\end money over a specific period.
B. The budget is a plan for how a government will raise money over a specific period.
C. The budget is a plan for how a government will sp\end money over a specific period.
D. The budget is a plan for how a government will raise and sp\end money over a specific period, but it is not a binding document.
Question 15
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P and the supply curve is given by Qs = 10 + 3P, find the equilibrium price and quantity.
A. ₦50, 50 units
B. ₦75, 25 units
C. ₦100, 0 units
D. ₦200, 100 units

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