POST UTME WELLSPRING UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GNP is ₦120 billion. The country imports goods and services worth ₦20 billion. What will be the effect on the country's GDP?
A. GDP will increase by ₦20 billion
B. GDP will decrease by ₦20 billion
C. GDP will remain cons\tant
D. GDP will increase by ₦10 billion
Question 2
A firm is producing at a point where its marginal revenue (MR) equals its marginal \cost (MC). If the firm increases production by 1 unit, what will happen to its total revenue?
A. Total revenue will increase by ₦100.
B. Total revenue will decrease by ₦100.
C. Total revenue will remain the same.
D. Total revenue will increase by ₦200.
Question 3
A country's GDP is 100 billion naira. The government decides to increase the price of a commodity by 20%. If the price elasticity of demand is 0.5, what is the percentage change in the quantity demanded?
A. 10%
B. 20%
C. 15%
D. 5%
Question 4
A firm is producing a product with a total revenue of 1000 naira and a total \cost of 800 naira. If the price elasticity of demand is 0.5, what is the percentage change in the quantity demanded?
A. 10%
B. 20%
C. 15%
D. 5%
Question 5
A firm is producing a commodity at a point where the marginal \cost of production is equal to the marginal revenue. If the firm increases the price of the commodity, what will be the effect on the quantity supplied?
A. The quantity supplied will increase
B. The quantity supplied will decrease
C. The quantity supplied will remain cons\tant
D. The quantity supplied will increase at a decrea\sing rate
Question 6
A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm's marginal revenue is 50, find the value of x.
A. 10
B. 20
C. 30
D. 40
Question 7
A firm is producing a commodity at a point where the marginal revenue product of labor is equal to the wage rate. If the firm increases the wage rate, what will be the effect on the quantity of labor employed?
A. The quantity of labor employed will increase
B. The quantity of labor employed will decrease
C. The quantity of labor employed will remain cons\tant
D. The quantity of labor employed will increase at a decrea\sing rate
Question 8
The elasticity of demand for a commodity is measured by the percentage change in the quantity demanded in response to a 1% change in the price of the commodity. If the demand for a commodity is elastic, what will be the effect on the total revenue of the firm?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain cons\tant
D. Total revenue will increase at a decrea\sing rate
Question 9
Consider a market with a demand function \( Q = 100 - 2P \) and a supply function \( Q = 2P - 10 \). If the market is in equilibrium, what is the price and quantity?
A. P = ₦20, Q = 30
B. P = ₦30, Q = 40
C. P = ₦40, Q = 50
D. P = ₦50, Q = 60
Question 10
A country has a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. What is the capital account surplus?
A. ₦50 billion
B. ₦75 billion
C. ₦100 billion
D. ₦150 billion
Question 11
A firm is producing a product with a total revenue of 1000 naira and a total \cost of 800 naira. If the price elasticity of demand is 0.5, what is the percentage change in the quantity demanded?
A. 10%
B. 20%
C. 15%
D. 5%
Question 12
A country has a trade deficit of $100 billion and a GDP of $1 trillion. What is the trade deficit as a percentage of GDP?
A. 10%
B. 20%
C. 5%
D. 15%
Question 13
A central bank increases the reserve requirement for commercial banks. What is the effect on the money supply?
A. The money supply increases.
B. The money supply decreases.
C. The money supply remains the same.
D. The money supply increases and then decreases.
Question 14
A firm is considering investing in a new project with a net present value of ₦100 million. If the firm's \cost of capital is 10%, what is the project's internal rate of return?
A. 12%
B. 15%
C. 18%
D. 20%
Question 15
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity?
A. The equilibrium price increases and the equilibrium quantity decreases.
B. The equilibrium price decreases and the equilibrium quantity increases.
C. The equilibrium price remains the same and the equilibrium quantity decreases.
D. The equilibrium price increases and the equilibrium quantity remains the same.

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