POST UTME IMS U 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a country with a money supply of ₦500 billion and a velocity of circulation of 2. If the country's GDP is ₦10 trillion, calculate the country's inflation rate.
A. 2%
B. 4%
C. 6%
D. 8%
Question 2
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. What is the marginal \cost function?
A. 4q + 10
B. 2q^2 + 10q + 5
C. q^2 + 5q
D. q^2 + 10q
Question 3
A country's government decides to implement a new tax on imports. If the tax is levied on the value of imports, what is the likely effect on the country's trade balance?
A. The trade balance will improve.
B. The trade balance will worsen.
C. The trade balance will remain unchanged.
D. The trade balance will increase.
Question 4
A firm is considering two different production processes. Process A has a fixed \cost of ₦100 and a variable \cost of ₦10 per unit, while Process B has a fixed \cost of ₦200 and a variable \cost of ₦5 per unit. If the firm produces 20 units, what is the total \cost of each process?
A. Process A: ₦300, Process B: ₦250
B. Process A: ₦250, Process B: ₦300
C. Process A: ₦350, Process B: ₦350
D. Process A: ₦250, Process B: ₦250
Question 5
A firm is facing a market demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is cons\tant at ₦10. If the firm's price elasticity of demand is 2, what is the optimal quantity of output to produce?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 6
A country's balance of payments is given by BOP = X - M, where X is exports and M is imports. If the country's exports increase by 15% and imports remain cons\tant, what is the percentage change in the balance of payments?
A. 15%
B. 10%
C. 5%
D. 0%
Question 7
The government of a country imposes a tariff of 20% on imported goods. If the price of the imported good is $100, what is the new price after the tariff is imposed?
A. $120
B. $120.00
C. $120.00
D. $120.00
Question 8
A firm is facing a market demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is cons\tant at ₦10. If the firm's price elasticity of demand is 2, what is the optimal price to charge?
A. ₦20
B. ₦25
C. ₦30
D. ₦35
Question 9
Consider a monopolistically competitive firm facing a market demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is cons\tant at ₦10. If the firm's price elasticity of demand is 2, what is the optimal quantity of output to produce?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 10
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 increased by 10% and 20%, respectively, what is the percentage change in output?
A. Output increases by 12%.
B. Output increases by 15%.
C. Output increases by 18%.
D. Output increases by 20%.
Question 11
A firm's \cost function is given by C = 2Q^2 + 3Q, where Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 12
The demand for a commodity is said to be perfectly inelastic if a change in the price of the commodity does not affect the quantity demanded. Which of the following best describes the demand curve for a perfectly inelastic commodity?
A. A horizontal line
B. A vertical line
C. An upward-sloping line
D. A downward-sloping line
Question 13
A firm's production function is given by Q = 100K^0.5L^0.5, where Q is output, K is capital, and L is labor. If the firm's capital increases by 25% and labor remains cons\tant, what is the percentage change in output?
A. 12.5%
B. 25%
C. 50%
D. 100%
Question 14
A government increases the tax rate on a particular good from 10% to 20%. If the demand for the good is given by Q = 100 - 2P and the supply is given by Q = 2P - 10, what is the new equilibrium price?
A. ₦15
B. ₦20
C. ₦25
D. ₦30
Question 15
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦100 and the prices of the two goods are ₦20 and ₦30 respectively, what is the consumer's optimal bundle?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4

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