POST UTME IMS U 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a perfectly competitive market with 5 firms, each producing a homogeneous product. If the market price is $10 and each firm's marginal \cost is $8, what is the profit-maximizing quantity for each firm?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. What is the firm's marginal product of labor (MPL) when L = 4 and K = 9?
A. MPL = 0.5
B. MPL = 1
C. MPL = 2
D. MPL = 4
Question 3
A monopolist produces a good with a cons\tant marginal \cost of ₦10 and a demand curve given by Q = 100 - 2P. If the monopolist produces 20 units of the good, what is the consumer surplus?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
Question 4
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape for the consumer's marginal rate of substitution (MRS)?
A. The MRS is cons\tant along the indifference curve.
B. The MRS decreases as the consumer moves along the indifference curve.
C. The MRS increases as the consumer moves along the indifference curve.
D. The MRS is zero at the point of \tangency with the budget line.
Question 5
Suppose 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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 6
A country's GDP is ₦100 billion, while its GNP is ₦120 billion. What is the value of the country's net factor income from abroad?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 7
The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has led to an increase in the price of agricultural inputs, which has reduced the profit margins of farmers. U\sing the concept of opportunity \cost, explain why the government's policy may not be effective in increa\sing agricultural production.
A. The policy has increased the opportunity \cost of farming, making it less profitable for farmers.
B. The policy has reduced the opportunity \cost of farming, making it more profitable for farmers.
C. The policy has had no effect on the opportunity \cost of farming.
D. The policy has increased the opportunity \cost of farming, but this has been offset by the increase in subsidies.
Question 8
A firm's production function is given by \( Q = 2L^{0.5}K^{0.5} \). If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 9
A firm has a \cost function given by C = 2L + 3K, where L is labor and K is capital. If the firm has 10 units of labor and 5 units of capital, what is the total \cost?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 10
A consumer has the following budget constraint: 2x + 3y = 12, where x is the number of units of good X and y is the number of units of good Y. If the consumer's utility function is given by U(x,y) = 2x + 3y, what is the optimal combination of good X and good Y that the consumer will choose?
A. (2,4)
B. (3,3)
C. (4,2)
D. (5,1)
Question 11
A firm is producing a good with the following production function: Q = 2L + 3K, where Q is the quantity produced, L is the number of labor hours, and K is the number of capital units. If the firm is currently producing 10 units of output and wants to increase production by 20%, how many more labor hours and capital units will it need to hire?
A. 5 labor hours and 3 capital units
B. 10 labor hours and 6 capital units
C. 15 labor hours and 9 capital units
D. 20 labor hours and 12 capital units
Question 12
A monopolist is producing a good with the following demand function: P = 100 - 2Q, where P is the price and Q is the quantity produced. If the firm's marginal \cost is cons\tant at 20, what is the optimal quantity of the good that the firm will produce?
A. 10
B. 20
C. 30
D. 40
Question 13
A consumer's indifference curve is given by the equation ( U(x,y) = 2x + 3y ). If the consumer's income is ₦1,200 and the prices of x and y are ₦50 and ₦75 respectively, what is the consumer's optimal bundle?
A. (20, 16)
B. (24, 12)
C. (28, 8)
D. (32, 4)
Question 14
A country's balance of payments is in equilibrium when the current account is equal to the capital account. What is the implication of this for the country's exchange rate?
A. The exchange rate will appreciate.
B. The exchange rate will depreciate.
C. The exchange rate will remain unchanged.
D. The exchange rate will fluctuate randomly.
Question 15
A firm is facing a downward-sloping demand curve given by the equation \( Q = 100 - 2P \). If the firm's marginal \cost is ₦50, what is the profit-maximizing price?
A. ₦40
B. ₦45
C. ₦50
D. ₦55

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: