POST UTME ABU 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C(q) = 2q^2 + 10q. What is the marginal \cost (MC) function?
A. MC(q) = 4q + 10
B. MC(q) = 2q + 10
C. MC(q) = 4q^2 + 10q
D. MC(q) = 2q^2 + 10
Question 2
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 cons\tant.
D. The money supply fluctuates.
Question 3
A consumer's utility function is given by 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 4
A country's GDP is $100 billion and its GNP is $120 billion. What is the net factor income from abroad (NFIA)?
A. $20 billion
B. $30 billion
C. $40 billion
D. $50 billion
Question 5
The government has allocated ₦1 billion for agricultural development. If the marginal benefit of the project is ₦500,000 and the marginal \cost is ₦300,000, should the project be implemented?
A. Yes
B. No
C. Maybe
D. More information is needed
Question 6
A country's balance of payments (BOP) accounts are in equilibrium. What is the implication of this equilibrium on the country's exchange rate?
A. The exchange rate will appreciate.
B. The exchange rate will depreciate.
C. The exchange rate will remain cons\tant.
D. The exchange rate will fluctuate.
Question 7
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape on the consumer's marginal rate of substitution (MRS)?
A. The MRS is cons\tant along the indifference curve.
B. The MRS is decrea\sing along the indifference curve.
C. The MRS is increa\sing along the indifference curve.
D. The MRS is zero along the indifference curve.
Question 8
A farmer has 100 hectares of land and can grow either wheat or maize. The revenue from wheat is ₦100,000 per hectare and the revenue from maize is ₦80,000 per hectare. If the opportunity \cost of growing maize is ₦20,000 per hectare, what is the optimal crop to grow?
A. Wheat
B. Maize
C. Both equally
D. Neither
Question 9
Agricultural development in Nigeria has been hindered by the lack of access to credit facilities for farmers. Which of the following policies would most likely address this issue?
A. Government subsidies for fertilizers and seeds
B. Establishment of a national agricultural bank
C. Implementation of a cash crop export policy
D. Introduction of a crop insurance scheme
Question 10
The demand for a product is given by Qd = 100 - 2P and the supply is given by Qs = 2P - 10. What is the equilibrium price and quantity?
A. P = 20, Q = 30
B. P = 30, Q = 20
C. P = 40, Q = 10
D. P = 50, Q = 0

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