POST UTME UI 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering the production of two goods, X and Y, with the following \cost functions: C_X = 2X^2 + 3X + 10 and C_Y = X^2 + 2Y^2 + 5. If the firm produces 10 units of good X and 5 units of good Y, what is the total \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 2
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market price is P = 10, and the marginal \cost (MC) of each firm is 5, what is the profit-maximizing quantity \( Q* \) for each firm?
A. \( Q^* = \frac{P - MC}{2} \)
B. \( Q^* = \frac{P + MC}{2} \)
C. \( Q^* = \frac{P - 2MC}{2} \)
D. \( Q^* = \frac{P + 2MC}{2} \)
Question 3
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's current labor and capital inputs are 16 and 9 respectively, what is the marginal product of labor?
A. 4L^\( -1/2 \)K^\( 1/2 \)
B. 2L^\( -1/2 \)K^\( -1/2 \)
C. 8L^\( -1/2 \)K^\( -1/2 \)
D. 6L^\( -1/2 \)K^\( -1/2 \)
Question 4
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm's average total \cost curve is U-shaped, what will happen to the firm's profit-maximizing output?
A. The firm will produce at the minimum point of the average total \cost curve.
B. The firm will produce at the point where the marginal revenue curve intersects the marginal \cost curve.
C. The firm will produce at the maximum point of the average total \cost curve.
D. The firm will produce at the point where the demand curve intersects the average total \cost curve.
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units, and the number of workers is 4, what is the required capital?
A. 4
B. 8
C. 16
D. 32
Question 6
A firm's \cost function is given by C = 2L + 3K, where L is labor and K is capital. If the firm's current labor and capital inputs are 10 and 5 respectively, what is the firm's total \cost?
A. 25
B. 30
C. 35
D. 40
Question 7
A firm's production function is given by Q = 2L^2 + 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 maximum output?
A. \( Q = 50 \)
B. \( Q = 60 \)
C. \( Q = 70 \)
D. \( Q = 80 \)
Question 8
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 budget constraint is 10x + 5y = 50, what is the consumer's optimal bundle of goods?
A. (5, 5)
B. (10, 0)
C. (0, 10)
D. (7.5, 2.5)
Question 9
A firm is considering the production of a new product. The firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm increases labor by 20% and capital by 15%, what is the expected increase in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 10
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 budget constraint is 2x + 3y = 12, find the optimal quantities of x and y that maximize utility.
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 11
The government of Nigeria is considering a fiscal policy to reduce inflation. If the government reduces government exp\enditure by 10% and increases taxes by 5%, what is the expected effect on the aggregate demand?
A. The aggregate demand increases
B. The aggregate demand decreases
C. The aggregate demand remains unchanged
D. The aggregate demand decreases in the short run but increases in the long run
Question 12
A market structure is characterized by a \single firm producing a homogeneous product, and the firm has complete control over the market price. What is the market structure?
A. Perfect Competition
B. Monopoly
C. Monopolistic Competition
D. Oligopoly
Question 13
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are ₦5 and ₦3 respectively, and the consumer has a budget of ₦20, find the optimal consumption bundle.
A. (4,4)
B. (6,2)
C. (8,0)
D. (0,6)
Question 14
A country has a GDP of ₦100 billion and a GNP of ₦120 billion. Find the net factor income from abroad.
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 15
A central bank's primary objective is to?
A. Maximize economic growth
B. Maintain price stability
C. Achieve full employment
D. Reduce inflation

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