POST UTME NOUN 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production functions are given by \( X = 2L^0.5K^0.5 \) and \( Y = 3L^0.75K^0.25 \). If the firm has 100 units of labor and 50 units of capital, what is the maximum value of the social welfare function \( W = X + Y \)?
A. 250
B. 300
C. 350
D. 400
Question 2
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's exports are $100 billion, imports are $80 billion, foreign investment is $20 billion, and domestic investment is $30 billion, what is the balance of payments?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 3
The Nigerian government has implemented a policy to increase the production of a particular good. The policy has led to an increase in the price of the good, which has resulted in a decrease in the quantity demanded. U\sing the concept of supply and demand, explain why the government's policy has led to a decrease in the quantity demanded.
A. The government's policy has led to a decrease in the quantity demanded because the supply curve has shifted to the right, resulting in a decrease in the quantity demanded.
B. The government's policy has led to a decrease in the quantity demanded because the demand curve has shifted to the left, resulting in a decrease in the quantity demanded.
C. The government's policy has led to a decrease in the quantity demanded because the supply curve has shifted to the left, resulting in a decrease in the quantity demanded.
D. The government's policy has led to a decrease in the quantity demanded because the demand curve has shifted to the right, resulting in a decrease in the quantity demanded.
Question 4
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions for X and Y are given by the following equations:
A. X = 2L + 3K, Y = 4L + 2K
B. X = 3L + 2K, Y = 2L + 4K
C. X = 2L + 4K, Y = 3L + 2K
D. X = 4L + 2K, Y = 3L + 4K
Question 5
A firm is considering two different production techno\logies: a traditional techno\logy that produces 100 units of output per hour and a modern techno\logy that produces 200 units of output per hour. If the firm's fixed \costs are ₦10,000 and its variable \costs are ₦5 per unit, which techno\logy should the firm choose?
A. Traditional techno\logy
B. Modern techno\logy
C. Both techno\logies
D. Neither techno\logy
Question 6
A firm is operating on the long-run average \cost curve. If the firm experiences a 20% increase in output, what will be the effect on the long-run average \cost curve?
A. The long-run average \cost curve will shift to the left.
B. The long-run average \cost curve will shift to the right.
C. The long-run average \cost curve will remain unchanged.
D. The long-run average \cost curve will shift downwards.
Question 7
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, what is the optimal bundle of x and y?
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 8
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions for X and Y are given by the following equations:
A. X = 2L + 3K, Y = 4L + 2K
B. X = 3L + 2K, Y = 2L + 4K
C. X = 2L + 4K, Y = 3L + 2K
D. X = 4L + 2K, Y = 3L + 4K
Question 9
A country is experiencing a 10% increase in exports. If the country is operating on the balance of payments equilibrium, what will be the effect on the balance of payments?
A. The balance of payments will shift to the left.
B. The balance of payments will shift to the right.
C. The balance of payments will remain unchanged.
D. The balance of payments will shift downwards.
Question 10
A country is experiencing a 10% increase in imports. If the country is operating on the balance of payments equilibrium, what will be the effect on the balance of payments?
A. The balance of payments will shift to the left.
B. The balance of payments will shift to the right.
C. The balance of payments will remain unchanged.
D. The balance of payments will shift downwards.
Question 11
A firm is experiencing a 20% increase in demand. If the firm is operating on the supply curve, what will be the effect on the firm's price?
A. The price will increase.
B. The price will decrease.
C. The price will remain unchanged.
D. The price will shift downwards.
Question 12
A country's GDP is ₦100 billion. If the government decides to increase the price of a commodity by 20%, what will be the effect on the GDP?
A. Increase by 20%
B. Decrease by 20%
C. No effect
D. Increase by 10%
Question 13
A country is experiencing a 10% increase in imports. If the country is operating on the balance of payments equilibrium, what will be the effect on the balance of payments?
A. The balance of payments will shift to the left.
B. The balance of payments will shift to the right.
C. The balance of payments will remain unchanged.
D. The balance of payments will shift downwards.
Question 14
A firm produces a good u\sing two inputs, labor (L) and capital (K). The production function for the good is given by the following equation:
A. Q = 2L + 3K
B. Q = 3L + 2K
C. Q = 2L + 4K
D. Q = 4L + 2K
Question 15
A country's GNP is ₦120 billion, its GDP is ₦100 billion, and its net factor income from abroad is ₦10 billion. What is its GNP?
A. ₦130 billion
B. ₦140 billion
C. ₦150 billion
D. ₦160 billion

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