POST UTME UI 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by the equation Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm has 10 units of labor and 5 units of capital, what is the quantity produced?
A. 20
B. 25
C. 30
D. 35
Question 2
A firm is producing a good with a total revenue of ₦120,000 and a total \cost of ₦100,000. What is the profit of the firm?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 3
A country's population is 100 million, and its GDP per capita is $10,000. What is the country's total GDP?
A. $1 trillion
B. $1.5 trillion
C. $2 trillion
D. $2.5 trillion
Question 4
The Nigerian government has implemented a policy to increase industrial production by providing tax incentives to firms. However, the policy has been criticized for being regressive and unfair. What is the opportunity \cost of this policy?
A. The opportunity \cost is the value of the next best alternative use of the resources.
B. The opportunity \cost is the value of the resources that could have been used for other purposes.
C. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being used for industrial production.
D. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being wasted due to inefficiency.
Question 5
A country's balance of payments account is given by the following table:\n\n| Category | Debit | Credit |\n| --- | --- | --- |\n| Current Account | 100 | 150 |\n| Capital Account | 50 | 20 |\n| Financial Account | 200 | 300 |\n| Errors and Omissions | 10 | 5 |\n\nFind the country's net foreign exchange earnings.
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 6
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be allocated to produce other goods. This leads to a trade-off between the production of different goods. Which of the following is a correct statement regarding the opportunity \cost of producing one good?
A. The opportunity \cost is the value of the next best alternative good that could have been produced with the same resources.
B. The opportunity \cost is the value of the good that is given up when producing another good.
C. The opportunity \cost is the value of the good that is produced in excess of the demand.
D. The opportunity \cost is the value of the good that is produced at a lower \cost than the next best alternative good.
Question 7
A government imposes a tax on a good, which increases its price. What will happen to the quantity supplied of the good?
A. The quantity supplied will increase.
B. The quantity supplied will decrease.
C. The quantity supplied will remain the same.
D. The quantity supplied will fluctuate.
Question 8
The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has been criticized for being inefficient and wasteful. What is the opportunity \cost of this policy?
A. The opportunity \cost is the value of the next best alternative use of the resources.
B. The opportunity \cost is the value of the resources that could have been used for other purposes.
C. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being used for agricultural production.
D. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being wasted due to inefficiency.
Question 9
A firm's agricultural production function is given by the following equation:\n\n\( Q = 100 + 2A + 3L \), where ( A ) is the amount of fertilizer used and ( L ) is the number of laborers employed.\n\nIf the firm uses 200 units of fertilizer and 50 laborers, find the level of production.
A. 500
B. 600
C. 700
D. 800
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it is currently producing 100 units of output, what is the firm's current marginal \cost of production?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 11
A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1,000 and the prices of the two goods are ₦50 and ₦75 respectively, what is the consumer's optimal bundle?
A. (10, 5)
B. (15, 3)
C. (20, 2)
D. (25, 1)
Question 12
A consumer's utility function is given by ( U(x,y) = 2x + 3y ). If the consumer's budget constraint is given by \( 2x + 3y = 12 \), find the consumer's optimal consumption bundle.
A. \( x = 2, y = 4 \)
B. \( x = 3, y = 3 \)
C. \( x = 4, y = 2 \)
D. \( x = 5, y = 1 \)
Question 13
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's current price is $50, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 14
A consumer has the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal bundle of x and y?
A. (2,2)
B. (3,1)
C. (4,0)
D. (0,4)
Question 15
A government imposes a tax on a good, which increases its price. What will happen to the deadweight loss of the tax?
A. The deadweight loss will increase.
B. The deadweight loss will decrease.
C. The deadweight loss will remain the same.
D. The deadweight loss will fluctuate.

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