POST UTME ABU 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's money supply is given by M = 1000 + 0.5Y, where Y is the firm's income. If the firm's income is ₦1 million, what is the value of the firm's money supply?
A. ₦1,500
B. ₦1,500.50
C. ₦1,500.50
D. ₦1,500.50
Question 2
A firm is producing at a point where its marginal \cost is equal to its average \cost. If the firm increases its output by 10%, what is the change in its average \cost?
A. Increases by 10%
B. Decreases by 10%
C. Remains the same
D. Increases by 20%
Question 3
A firm is considering two different pricing strategies for a product. Strategy A involves setting a high price for the product to maximize profit, while Strategy B involves setting a low price for the product to maximize market share. What is the opportunity \cost of choo\sing Strategy A over Strategy B?
A. The opportunity \cost is the reduction in market share due to the high price.
B. The opportunity \cost is the reduction in profit due to the low price.
C. The opportunity \cost is the increase in the number of customers who are unable to afford the product.
D. The opportunity \cost is the increase in the number of customers who are willing to pay the high price.
Question 4
A monopolist faces a demand curve with elasticity of -3. If the firm increases its price by 15%, what is the percentage change in quantity demanded?
A. 25%
B. 20%
C. 15%
D. 10%
Question 5
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm has 100 units of labor and 200 units of capital, what is its production?
A. 200 units
B. 400 units
C. 600 units
D. 800 units
Question 6
A country's government imposes a tax of ₦20 per unit on a good that is produced by a firm. If the firm's supply curve is given by Q = 2P - 20, where Q is the quantity supplied and P is the price, which of the following is the new supply curve after the tax is imposed?
A. Q = 2P - 40
B. Q = 2P - 30
C. Q = 2P - 25
D. Q = 2P - 20
Question 7
A government plans to implement a new tax policy to reduce income inequality. The policy involves a progressive tax system where higher-income individuals pay a higher tax rate. However, the policy also includes a tax exemption for low-income individuals. What is the opportunity \cost of implementing this policy?
A. The opportunity \cost is the reduction in economic growth due to the increased tax burden on high-income individuals.
B. The opportunity \cost is the increase in tax revenue from high-income individuals.
C. The opportunity \cost is the reduction in tax revenue from low-income individuals.
D. The opportunity \cost is the increase in economic inequality due to the tax exemption for low-income individuals.
Question 8
A firm's demand function is given by Q = 100 - 2P. If the firm's price is ₦50, what is the firm's quantity demanded?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 9
A firm's revenue function is given by R(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm's \cost function is C(x) = x^2 + 5x + 2, what is the profit function?
A. P(x) = x^2 + 5x + 3
B. P(x) = 2x^2 + 5x + 3
C. P(x) = x^2 + 5x + 2
D. P(x) = 2x^2 + 10x + 5
Question 10
A government is considering a policy to increase the tax rate on luxury goods. The policy is expected to increase tax revenue, but it may also lead to a decrease in demand for these goods. What is the opportunity \cost of implementing this policy?
A. The opportunity \cost is the reduction in tax revenue due to the decrease in demand.
B. The opportunity \cost is the increase in the number of jobs lost in the luxury goods industry.
C. The opportunity \cost is the reduction in the s\tandard of living for high-income individuals.
D. The opportunity \cost is the increase in the s\tandard of living for low-income individuals.
Question 11
A firm's revenue function is given by R(x) = 3x^2 - 2x + 1. If the firm's marginal revenue is ₦10 per unit, what is the firm's total revenue when it produces 5 units?
A. ₦150
B. ₦250
C. ₦350
D. ₦450
Question 12
A country's GDP is ₦10 trillion, and its GNP is ₦11 trillion. What is the net factor income from abroad?
A. ₦1 trillion
B. ₦500 billion
C. ₦1.5 trillion
D. ₦2 trillion
Question 13
A firm's demand function is given by Qd = 100 - 2P. If the firm's marginal revenue (MR) is ₦20, what is its price?
A. ₦40
B. ₦30
C. ₦20
D. ₦10
Question 14
Consider a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. If the market price is initially at P1 and the quantity demanded is Q1, and then a shift in the demand curve causes the new market price to be P2, which of the following statements is true?
A. The quantity demanded increases from Q1 to Q2
B. The quantity supplied increases from Q1 to Q2
C. The quantity demanded decreases from Q1 to Q2
D. The quantity supplied decreases from Q1 to Q2
Question 15
A country's GDP is ₦100 billion. If the country's population is 20 million, what is the per capita GDP?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

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