POST UTME AAUA 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good with a production function of Q = 2L^0.5K^0.5. If the price of the good is $10 and the price of labor is $5, what is the optimal level of capital to hire?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 2
A country's GDP is $100 billion, its GNP is $120 billion, and its national income is $150 billion. What is the country's net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 3
A government imposes a tax of ₦10 per unit on a good. If the demand for the good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price, what is the new equilibrium price?
A. ₦40
B. ₦45
C. ₦50
D. ₦55
Question 4
A country's GDP is $100 billion, its GNP is $120 billion, and its national income is $150 billion. What is the country's net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 5
A firm is considering two different production techno\logies: one that is labor-intensive and another that is capital-intensive. If the firm chooses the labor-intensive techno\logy, what will happen to its labor \costs?
A. Labor \costs will increase.
B. Labor \costs will decrease.
C. Labor \costs will remain unchanged.
D. Labor \costs will become negative.
Question 6
A firm's \cost function is given by the equation C(x) = 2x^2 + 5x + 3, where x is the number of units produced. If the firm produces 10 units, what is its total \cost?
A. ₦123
B. ₦133
C. ₦143
D. ₦153
Question 7
A firm is producing a good with a production function of Q = 2L^0.5K^0.5. If the price of the good is $10 and the price of labor is $5, what is the optimal level of labor to hire?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 8
The government of a country decides to implement a policy of reducing the tax rate on a particular good. If the demand for the good is inelastic, what will be the effect on the government's revenue?
A. The government's revenue will increase
B. The government's revenue will decrease
C. The government's revenue will remain the same
D. The effect on the government's revenue is uncertain
Question 9
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 10x + 20y = 100, what is the consumer's optimal bundle of x and y?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 10
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 10x + 20y = 100, what is the consumer's optimal bundle of x and y?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 11
A country is experiencing a recession. If the government increases its sp\ending, what will happen to the aggregate demand curve?
A. Aggregate demand curve will shift to the left.
B. Aggregate demand curve will shift to the right.
C. Aggregate demand curve will remain unchanged.
D. Aggregate demand curve will become vertical.
Question 12
A monopolist produces a product with a demand function of Q = 100 - 2P and a \cost function of C = 20 + 5Q. What is the profit-maximizing price and quantity?
A. P = 30, Q = 40
B. P = 40, Q = 30
C. P = 50, Q = 20
D. P = 60, Q = 10
Question 13
The government of Nigeria has implemented a policy to increase agricultural production. The policy involves providing subsidies to farmers and investing in irrigation infrastructure. However, the policy has also led to an increase in the price of agricultural products. U\sing the concept of opportunity \cost, analyze the impact of the policy on the economy.
A. The policy has increased the opportunity \cost of producing agricultural products.
B. The policy has decreased the opportunity \cost of producing agricultural products.
C. The policy has no impact on the opportunity \cost of producing agricultural products.
D. The policy has increased the opportunity \cost of consuming agricultural products.
Question 14
A monopolist's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 4Q, what is the firm's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 15
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its average variable \cost (AVC) curve at a point where the price is ₦100, what is the firm's optimal output level?
A. 10 units
B. 20 units
C. 30 units
D. 40 units

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