POST UTME ABU 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of labor increases from ₦100 to ₦120 and the price of capital increases from ₦200 to ₦240, what is the new \cost-minimizing combination of labor and capital?
A. L = 16, K = 9
B. L = 9, K = 16
C. L = 4, K = 4
D. L = 2, K = 2
Question 2
A country's budget is given by the equation B = T + I + G, where B is the budget, T is the tax revenue, I is the interest payment, and G is the government exp\enditure. If the tax revenue is ₦100, the interest payment is ₦20, and the government exp\enditure is ₦80, what is the budget?
A. ₦200
B. ₦220
C. ₦240
D. ₦260
Question 3
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its balance of trade?
A. ₦5 billion surplus
B. ₦5 billion deficit
C. ₦10 billion surplus
D. ₦10 billion deficit
Question 4
Determine the national income of a country, given the following data: GDP = ₦100 billion, net factor income from abroad = ₦20 billion, and depreciation = ₦10 billion.
A. ₦90 billion
B. ₦110 billion
C. ₦120 billion
D. ₦130 billion
Question 5
Agricultural sector in Nigeria contributes 25% to the country's GDP. If the GDP is ₦100 billion, determine the value of agricultural sector's contribution to GDP.
A. ₦25 billion
B. ₦30 billion
C. ₦35 billion
D. ₦40 billion
Question 6
A firm's \cost function is given by C = 2L + 3K, where C is the \cost, L is the labor, and K is the capital. If the firm has 5 units of labor and 6 units of capital, what is the \cost?
A. 20
B. 30
C. 40
D. 50
Question 7
A firm's revenue function is given by R = 2Q + 3P, where R is the revenue, Q is the quantity, and P is the price. If the quantity is 10 and the price is ₦20, what is the revenue?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 8
The Nigerian government has implemented policies to promote industrialization. What is the opportunity \cost of investing in industrialization?
A. The opportunity \cost is the value of the land that could have been used for other purposes.
B. The opportunity \cost is the value of the labor that could have been used for other tasks.
C. The opportunity \cost is the value of the resources that could have been used for other industries.
D. The opportunity \cost is the value of the goods that could have been produced with the same resources.
Question 9
A firm's production function is given by the equation Q = 2L^2 + 3K, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the firm has 10 labor hours and 5 units of capital, find the quantity produced.
A. 20
B. 30
C. 40
D. 50
Question 10
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is cons\tant and equal to 2, what is the price at which the quantity demanded is 60?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 11
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be allocated to other goods. This is an example of a trade-off between two goods. What is the opportunity \cost of producing more of good X?
A. The opportunity \cost is the value of the next best alternative good that could have been produced with the same resources.
B. The opportunity \cost is the value of the good that is given up when producing more of good X.
C. The opportunity \cost is the value of the good that is produced in excess of the demand.
D. The opportunity \cost is the value of the good that is not produced at all.
Question 12
An increase in the price of a good from P0 to P1 leads to a decrease in the quantity demanded from Q0 to Q1. Which of the following is a possible explanation for this phenomenon?
A. Increase in consumer income
B. Decrease in consumer income
C. Increase in price of a complementary good
D. Decrease in price of a substitute good
Question 13
Consider a perfectly competitive market with a large number of firms producing a homogeneous product. If the market price falls, what will happen to the marginal revenue of each firm?
A. Marginal revenue will increase
B. Marginal revenue will decrease
C. Marginal revenue will remain unchanged
D. Marginal revenue will become negative
Question 14
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its quantity demanded?
A. Quantity demanded will increase
B. Quantity demanded will decrease
C. Quantity demanded will remain unchanged
D. Quantity demanded will become infinite
Question 15
Determine the optimal price and output for a monopolist facing a demand curve given by Q = 100 - 2P, with a cons\tant marginal \cost of ₦50.
A. ₦75, 50 units
B. ₦100, 25 units
C. ₦50, 75 units
D. ₦200, 10 units

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