POST UTME MOUNTAIN TOP UNIVERSITY 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 firm increases its labor input from 4 units to 9 units, and holds capital input cons\tant at 16 units, what is the percentage change in output?
A. 25%
B. 50%
C. 75%
D. 100%
Question 2
The inflation rate in an economy is the rate at which the general price level of goods and services is ri\sing. Which of the following is a correct effect of inflation?
A. The purcha\sing power of money decreases.
B. The value of money increases.
C. The level of economic activity increases.
D. The level of unemployment decreases.
Question 3
The formula for calculating the inflation rate is
A. \( CPI_t - CPI_\( t-1 \ \)) / CPI_\( t-1 \)
B. \( CPI_t - CPI_\( t-1 \ \)) / CPI_t
C. \( CPI_t + CPI_\( t-1 \ \)) / 2
D. CPI_t - CPI_\( t-1 \)
Question 4
The concept of opportunity \cost in economics refers to the value of the next best alternative that is given up when a choice is made. Which of the following is a correct example of opportunity \cost?
A. A farmer chooses to grow wheat instead of maize.
B. A person chooses to eat a sandwich instead of a salad.
C. A company chooses to invest in a new project instead of expanding an existing one.
D. A government chooses to sp\end money on defense instead of education.
Question 5
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal \cost curve
C. average revenue curve
D. average \cost curve
Question 6
A monopolist faces a demand curve given by Q = 100 - 2P. If the marginal \cost is cons\tant at ₦20, what is the profit-maximizing price?
A. ₦40
B. ₦60
C. ₦80
D. ₦100
Question 7
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the optimal bundle of goods?
A. x = 40, y = 20
B. x = 20, y = 40
C. x = 30, y = 30
D. x = 10, y = 50
Question 8
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the value of net factor income from abroad?
A. ₦20 billion
B. ₦10 billion
C. ₦5 billion
D. ₦15 billion
Question 9
A monopolist faces a demand curve given by P = 100 - 2Q. If the firm's marginal \cost (MC) is cons\tant at ₦20, what is the profit-maximizing output level?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 10
A firm's production function is given by Q = 2L + 3K. If the firm's labor (L) increases from 10 units to 15 units, and the capital (K) remains cons\tant at 5 units, what is the marginal product of labor?
A. 2
B. 4
C. 6
D. 8
Question 11
A country is experiencing a trade deficit due to a decrease in exports and an increase in imports. The government decides to implement a policy to increase exports and reduce imports. Which of the following policies would be most effective in achieving this goal?
A. Implementing a tariff on imports to reduce the quantity of imports.
B. Providing subsidies to domestic producers to increase exports.
C. Implementing a quota on imports to reduce the quantity of imports.
D. Devaluing the currency to make exports cheaper.
Question 12
The agricultural sector in Nigeria is characterized by
A. high levels of mechanization
B. low levels of mechanization
C. high levels of irrigation
D. low levels of irrigation
Question 13
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. The firm's marginal \cost function is
A. MC(q) = 4q + 10
B. MC(q) = 2q + 10
C. MC(q) = 4q^2 + 10q
D. MC(q) = 2q^2 + 10q
Question 14
A country's balance of payments is given by BOP = 100 + 20X - 10Y, where X and Y are the values of exports and imports respectively. If the country's balance of payments is ₦500 and the value of exports is ₦200, what is the value of imports?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 15
A firm's production function is given by Q = 2L^0.5H^0.5, where L and H are inputs. If the firm's output is 16 units, and the input of labor (L) is 4 units, what is the input of capital (H)?
A. 4
B. 9
C. 16
D. 36

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