POST UTME WELLSPRING UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments (BOP) accounts are in equilibrium when the current account is equal to the capital account. If the country's current account is in deficit, what is the implication for the capital account?
A. The capital account will be in surplus.
B. The capital account will be in deficit.
C. The capital account will be in equilibrium.
D. The capital account will be in surplus, but the current account will be in equilibrium.
Question 2
A government is considering a policy to increase the minimum wage from ₦20,000 to ₦30,000 per month. If the government expects the policy to increase employment by 10%, calculate the change in the government's tax revenue.
A. ₦100,000,000
B. ₦150,000,000
C. ₦200,000,000
D. ₦250,000,000
Question 3
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and it is currently producing 4 units of output, calculate the firm's current total \cost.
A. ₦800
B. ₦1200
C. ₦1600
D. ₦2000
Question 4
A firm is considering investing in a new project with an initial \cost of ₦500,000 and expected annual profits of ₦150,000 for 3 years. If the firm's \cost of capital is 12%, calculate the internal rate of return (IRR) of the project.
A. 15%
B. 18%
C. 20%
D. 22%
Question 5
A government is considering a policy to reduce inflation by increa\sing the reserve requirement of commercial banks. If the current reserve requirement is 10% and the government wants to increase it by 5 percentage points, what will be the new reserve requirement?
A. 15%
B. 20%
C. 25%
D. 30%
Question 6
The money supply is the total amount of
A. currency in circulation
B. currency in banks
C. currency in circulation and in banks
D. currency in circulation and in foreign banks
Question 7
A firm is producing a good u\sing the production function Q = 2L^0.5K^0.5. If the firm is currently producing 100 units of output with 100 units of labor and 100 units of capital, calculate the total product and total \cost.
A. TP = 150, TC = 150
B. TP = 200, TC = 200
C. TP = 250, TC = 250
D. TP = 300, TC = 300
Question 8
The demand function for a good is given by P = 100 - 2Q, where P is price and Q is quantity demanded. If the supply function is given by P = 2Q + 10, calculate the equilibrium price and quantity.
A. P^* = 20, Q^* = 5
B. P^* = 25, Q^* = 7.5
C. P^* = 30, Q^* = 10
D. P^* = 35, Q^* = 12.5
Question 9
A firm is producing a good u\sing the production function Q = 2L^0.5K^0.5. If the firm is currently producing 100 units of output with 100 units of labor and 100 units of capital, calculate the marginal product of labor and marginal product of capital.
A. MP_L = 0.5, MP_K = 0.5
B. MP_L = 1, MP_K = 1
C. MP_L = 0.25, MP_K = 0.25
D. MP_L = 0.5, MP_K = 0.25
Question 10
A budget is a
A. statement of government revenue and exp\enditure
B. a plan for government revenue and exp\enditure
C. a statement of government exp\enditure only
D. a plan for government revenue only
Question 11
The production function for a firm is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases labor from 100 to 121 units and capital from 100 to 121 units, calculate the percentage change in output.
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
The opportunity \cost of producing one more unit of a good is the
A. marginal benefit
B. marginal \cost
C. average \cost
D. average revenue
Question 13
A country's balance of payments is in equilibrium when the current account is balanced with the capital account
A. and the trade deficit is zero
B. and the trade surplus is zero
C. and the capital account is zero
D. and the current account is zero
Question 14
The government of Nigeria is considering a policy to increase agricultural production. If the policy is expected to increase the supply of agricultural products by 10%, calculate the effect on the price of agricultural products.
A. \frac{\Delta P}{P} = -0.05
B. \frac{\Delta P}{P} = -0.1
C. \frac{\Delta P}{P} = -0.15
D. \frac{\Delta P}{P} = -0.2
Question 15
A firm is considering investing in a new project with an initial \cost of ₦1,000,000 and expected annual profits of ₦200,000 for 5 years. If the firm's \cost of capital is 10%, calculate the net present value (NPV) of the project.
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: