POST UTME IMS U 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Suppose a firm's demand function is given by Q = 100 - 2P, and its supply function is given by Q = 2P - 10. U\sing the concept of equilibrium, find the price and quantity at which the firm will operate.
A. Price = 20, Quantity = 30
B. Price = 30, Quantity = 20
C. Price = 25, Quantity = 25
D. Price = 15, Quantity = 35
Question 2
A government imposes a tax on a particular good, cau\sing the supply curve to shift to the left. What is the likely effect on the equilibrium price and quantity of the good?
A. Price increases and quantity sold decreases
B. Price decreases and quantity sold increases
C. Price remains the same and quantity sold remains the same
D. Price increases and quantity sold increases
Question 3
A monopolistically competitive firm faces a downward-sloping demand curve and has the ability to produce at a lower \cost than its competitors. What is the likely effect of this on the firm's price and quantity sold?
A. Price increases and quantity sold decreases
B. Price decreases and quantity sold increases
C. Price remains the same and quantity sold remains the same
D. Price increases and quantity sold increases
Question 4
A country's balance of payments account is given by the equation BOP = X - M + \( F - I \). If the country's exports are 500, imports are 300, foreign investment is 200, and domestic investment is 100, calculate the country's balance of payments.
A. 200
B. 300
C. 400
D. 500
Question 5
The concept of scarcity in economics implies that the wants and needs of individuals are unlimited, while the resources available to satisfy these wants and needs are limited. Which of the following best describes the relationship between wants and needs?
A. Wants are unlimited, while needs are limited.
B. Wants and needs are both unlimited.
C. Wants are limited, while needs are unlimited.
D. Wants and needs are both limited.
Question 6
A firm faces a demand curve given by Qd = 100 - 2P and a production function given by Q = 2L^2. If the firm's \cost function is C(L) = 10L + 5, determine the profit-maximizing level of output and price.
A. \( L = 5, P = 45 \)
B. \( L = 10, P = 40 \)
C. \( L = 15, P = 35 \)
D. \( L = 20, P = 30 \)
Question 7
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 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 8
A consumer has a utility function given by U(x, y) = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 100. Determine the consumer's optimal bundle of x and y.
A. \( x = 20, y = 30 \)
B. \( x = 30, y = 20 \)
C. \( x = 40, y = 10 \)
D. \( x = 50, y = 0 \)
Question 9
What is the formula for calculating the Gross Domestic Product (GDP) of a country?
A. GDP = C + I + G + \( X - M \)
B. GDP = C + I + G + X + M
C. GDP = C + I + G - X + M
D. GDP = C + I + G + X - M
Question 10
What is the formula for calculating the National Income (NI) of a country?
A. NI = C + I + G + \( X - M \)
B. NI = C + I + G + X + M
C. NI = C + I + G - X + M
D. NI = C + I + G + X - M
Question 11
A firm has a \cost function C = 100 + 2L + 3K, where C is the \cost, L is the labor and K is the capital. If the firm wants to minimize its \cost and the labor is 20, what is the optimal level of capital?
A. 10
B. 20
C. 30
D. 40
Question 12
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2. If the firm produces 50 units, calculate the firm's total \cost.
A. 1500
B. 1600
C. 1700
D. 1800
Question 13
A firm has a production function given by Q = 2L^2 and a \cost function given by C(L) = 10L + 5. Determine the firm's marginal \cost and marginal product of labor.
A. \( MC = 20L, MP = 4L \)
B. \( MC = 10L, MP = 2L \)
C. \( MC = 5L, MP = L \)
D. \( MC = 2L, MP = 0.5L \)
Question 14
A firm's production possibilities curve (PPC) is a graphical representation of the various combinations of two goods that a firm can produce given the available resources and techno\logy. Which of the following is a characteristic of a PPC?
A. It is a straight line.
B. It is a curve.
C. It is a rec\tangle.
D. It is a triangle.
Question 15
What is the concept of diminishing marginal utility in economics?
A. The increase in utility from consuming one more unit of a good or service
B. The decrease in utility from consuming one more unit of a good or service
C. The equal utility from consuming one more unit of a good or service
D. The unequal utility from consuming one more unit of a good or service

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