POST UTME WELLSPRING UNIVERSITY 2021 Economics | Objective

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Question 1
A country's balance of payments is given by the following equation: BOP = X - M + \( F - I \). What does the term 'F - I' represent?
A. Net exports
B. Net factor income
C. Net capital outflow
D. Net capital inflow
Question 2
A country's balance of payments (BOP) is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦80 billion, what is the balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 3
A country's GNP at market price is ₦1,800,000,000. If the country's net factor income from abroad is ₦200,000,000, what is the GNP at factor \cost?
A. ₦1,600,000,000
B. ₦1,700,000,000
C. ₦1,800,000,000
D. ₦1,900,000,000
Question 4
A firm is producing a good with a production function given by Q = 2L^\( 1/2 \)K^\( 1/2 \). The firm's \cost function is C = 10L + 20K. What is the firm's profit-maximizing level of labor and capital?
A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 1
D. L = 1, K = 16
Question 5
A country's inflation rate is 5% per annum. If the country's current price level is P = ₦100, calculate the expected price level after 1 year.
A. ₦105
B. ₦110
C. ₦115
D. ₦120
Question 6
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 7
A firm's revenue function is given by R = 100P - 0.1P^2. If the firm's current price is P = ₦50, calculate the marginal revenue (MR) and elasticity of demand.
A. MR = ₦100, elasticity of demand = 0.5
B. MR = ₦50, elasticity of demand = 1
C. MR = ₦25, elasticity of demand = 2
D. MR = ₦0, elasticity of demand = 0
Question 8
A consumer's demand for a good is given by Q = 100 - 2P. The consumer's income is ₦1000. What is the consumer's price elasticity of demand?
A. PED = -0.5
B. PED = -1
C. PED = -1.5
D. PED = -2
Question 9
A firm's supply curve is given by the equation Qs = 2P + 10. If the price is ₦20, what is the quantity supplied?
A. 30
B. 40
C. 50
D. 60
Question 10
A consumer's demand for a good is given by Q = 100 - 2P. The consumer's income is ₦1000. What is the consumer's budget constraint?
A. P + 0.5Q = 1000
B. P - 0.5Q = 1000
C. P + 0.2Q = 1000
D. P - 0.2Q = 1000
Question 11
A consumer's budget constraint is given by 2x + 3y = 12, where x is the number of units of good X and y is the number of units of good Y. If the consumer's income increases by 20%, and the price of good X remains cons\tant at ₦2 per unit, what is the new budget constraint equation?
A. 2x + 3y = 14.4
B. 2x + 3y = 15.6
C. 2x + 3y = 16.8
D. 2x + 3y = 18
Question 12
A firm is operating in a monopoly market. If the firm's demand curve is given by Q = 100 - 2P, and the firm's marginal revenue (MR) is given by MR = 200 - 2P, what is the firm's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 13
A farmer in Nigeria has 500 hectares of land to cultivate maize. If the yield per hectare is 2.5 tons, what is the total yield from the land?
A. 1000
B. 1250
C. 1500
D. 2000
Question 14
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. The firm's revenue function is given by R(q) = 3q^2 + 5q. What is the firm's profit function?
A. P(q) = q^2 + 5q + 5
B. P(q) = 2q^2 + 5q + 5
C. P(q) = 3q^2 + 5q - 5
D. P(q) = 2q^2 + 10q + 5
Question 15
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 20 units of output, what is its total \cost?
A. ₦150
B. ₦200
C. ₦250
D. ₦300

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