POST UTME WELLSPRING UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering investing in a new project with an initial \cost of ₦100,000 and expected annual profits of ₦20,000 for 5 years. What is the internal rate of return (IRR) of the project?
A. 10%
B. 15%
C. 20%
D. 25%
Question 2
A country's balance of payments is given by the equation \( BOP = X - M \), where ( BOP ) is the balance of payments, ( X ) is the exports and ( M ) is the imports. If the exports are ₦100 billion and the imports are ₦120 billion, what is the balance of payments?
A. ₦20 billion surplus
B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit
Question 3
A firm's revenue function is given by R(q) = 20q^2 - 10q. If the firm produces 5 units, what is the marginal revenue?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 4
A country's balance of payments is in equilibrium when the current account is equal to the capital account. If the current account is $100 million and the capital account is $80 million, what is the net capital outflow?
A. $20 million
B. $30 million
C. $40 million
D. $50 million
Question 5
A firm produces a good with a production function Q = 2L + 3K, where L is labor and K is capital. If the firm hires 10 units of labor and 5 units of capital, what is the marginal product of labor?
A. 2
B. 3
C. 4
D. 5
Question 6
The government of Nigeria has introduced a new policy aimed at increa\sing industrial production. The policy includes a tax credit of ₦20,000 per unit of output for firms that produce goods that are in high demand. If a firm produces 100 units of output, how much tax credit will they receive?
A. ₦2,000,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 7
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue. The policy includes a 10% tax on all income above ₦500,000. If a person earns ₦750,000 per annum, how much tax will they pay?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 8
A firm produces a good with a production function Q = 2L + 3K, where L is labor and K is capital. If the firm hires 10 units of labor and 5 units of capital, how many units of the good will it produce?
A. 20
B. 30
C. 40
D. 50
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm has 4 units of labor and 9 units of capital, how many units of output will it produce?
A. 12 units
B. 15 units
C. 18 units
D. 20 units
Question 10
A monopolist faces a market demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10 + 2Q. What is the monopolist's optimal price and quantity?
A. P = ₦50, Q = 25
B. P = ₦75, Q = 50
C. P = ₦100, Q = 75
D. P = ₦125, Q = 100
Question 11
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 = 2P, find the equilibrium price and quantity.
A. ₦50, 50 units
B. ₦75, 25 units
C. ₦100, 0 units
D. ₦200, 50 units
Question 12
A country's inflation rate is given by the following equation: Inflation Rate = \( P - P0 \) / P0, where P is the current price level and P0 is the base price level. If the current price level is ₦100 and the base price level is ₦80, what is the inflation rate?
A. 25%
B. 30%
C. 35%
D. 40%
Question 13
A firm's \cost function is given by C(q) = 10q^2 + 20q. If the firm produces 10 units, what is the total \cost?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
Question 14
The government of Nigeria has introduced a new policy aimed at increa\sing agricultural production. The policy includes a subsidy of ₦50,000 per hectare for farmers who produce crops that are in high demand. If a farmer produces 100 hectares of crops, what is the total subsidy they will receive?
A. ₦5,000,000
B. ₦5,500,000
C. ₦6,000,000
D. ₦6,500,000
Question 15
A country's inflation rate is given by the following equation: Inflation = \( P - P0 \) / P0, where P is the current price level and P0 is the base price level. If the current price level is ₦100 and the base price level is ₦80, what is the inflation rate?
A. 12.5%
B. 25%
C. 37.5%
D. 50%

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