POST UTME ABU 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total revenue is given by the equation TR = 2X + 3Y, where X and Y are the quantities of two goods produced. If the firm's total \cost is ₦100,000, and its total revenue is ₦150,000, what is the firm's profit?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 2
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
A. 1
B. 2
C. 3
D. 4
Question 3
A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, if a multinational corporation (MNC) produces goods in the country but sells them abroad, how would this affect the country's GDP?
A. GDP would increase
B. GDP would decrease
C. GDP would remain unchanged
D. GDP would be affected only if the MNC is a foreign-owned subsidiary
Question 4
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 100. What is the equilibrium price and quantity?
A. P = 50, Q = 50
B. P = 75, Q = 25
C. P = 100, Q = 0
D. P = 0, Q = 100
Question 5
A central bank implements an expansionary monetary policy by lowering the reserve requirement for commercial banks. What would be the expected effect on the money supply?
A. Money supply would decrease
B. Money supply would increase
C. Money supply would remain unchanged
D. Money supply would fluctuate randomly
Question 6
A country's national income is calculated u\sing the formula NI = C + I + G + \( X - M \). If the country's consumption is ₦500,000,000, its investment is ₦200,000,000, its government exp\enditure is ₦300,000,000, its exports are ₦400,000,000, and its imports are ₦200,000,000, what is the country's national income?
A. ₦1,500,000,000
B. ₦1,600,000,000
C. ₦1,700,000,000
D. ₦1,800,000,000
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units, and the price of labor is $10 per unit, while the price of capital is $20 per unit, what is the likely effect on the firm's profit?
A. The firm's profit will increase.
B. The firm's profit will decrease.
C. The firm's profit will remain unchanged.
D. The firm's profit will fluctuate.
Question 8
A firm's production function is given by \( Q = 2L^0.5K^0.5 \), where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are 4 and 9 units, respectively, what is the optimal level of output?
A. \( Q = 12 \)
B. \( Q = 18 \)
C. \( Q = 24 \)
D. \( Q = 36 \)
Question 9
A firm is considering two investment projects, A and B. Project A has a \cost of ₦100,000 and is expected to generate a revenue of ₦120,000. Project B has a \cost of ₦80,000 and is expected to generate a revenue of ₦100,000. If the firm's objective is to maximize profits, which project should it choose?
A. Project A
B. Project B
C. Both projects
D. Neither project
Question 10
A firm's demand curve is given by the equation Qd = 100 - 2P. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what is the price elasticity of demand?
A. Unit elastic
B. Inelastic
C. Perfectly elastic
D. Perfectly inelastic
Question 11
A monopolistically competitive firm is faced with a downward-sloping demand curve. If the firm increases its price, what will happen to its revenue?
A. Revenue will increase
B. Revenue will decrease
C. Revenue will remain unchanged
D. Revenue will increase in the short run but decrease in the long run
Question 12
Agricultural production in Nigeria is characterized by a high degree of seasonality. Which of the following is a consequence of this seasonality?
A. Increased production \costs
B. Decreased food security
C. Increased food prices
D. Increased agricultural employment
Question 13
A firm's demand curve is given by Q = 100 - 2P. If the firm's output is 60 units, what is the likely effect on the firm's price?
A. The price will increase.
B. The price will decrease.
C. The price will remain unchanged.
D. The price will fluctuate.
Question 14
A monopolist faces a demand curve with the following equation: Qd = 100 - 2P. If the firm's marginal \cost (MC) is cons\tant at ₦10, what is the optimal price and quantity that the firm will produce?
A. P = ₦40, Q = 30
B. P = ₦50, Q = 25
C. P = ₦60, Q = 20
D. P = ₦70, Q = 15
Question 15
A consumer is faced with the following utility function: U = 2x + 3y, where x and y are the quantities of two goods consumed. The prices of the goods are $2 and $3, respectively. What is the consumer's budget constraint?
A. 2x + 3y = 10
B. 2x + 3y = 20
C. 2x + 3y = 30
D. 2x + 3y = 40

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