POST UTME UI 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A perfectly competitive firm's supply curve is upward-sloping because it is a
A. representative firm that maximizes profits by producing at the lowest point on its ATC curve
B. price-taker that adjusts its output in response to changes in market price
C. monopolist that sets its price and quantity to maximize profits
D. perfectly competitive firm that maximizes profits by producing at the lowest point on its ATC curve
Question 2
A consumer's utility function is given by ( U(x,y) = 2x + 3y ). Find the marginal utility of good x.
A. \( MU_x = 2 \ \)
B. \( MU_x = 3 \ \)
C. \( MU_x = 4 \ \)
D. \( MU_x = 5 \ \)
Question 3
A country's agricultural sector is characterized by a high degree of market power, leading to a market structure that is best described as?
A. Perfect competition
B. Monopoly
C. Oligopoly
D. Monopolistic competition
Question 4
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. What is the marginal revenue when x = 10?
A. $80
B. $90
C. $100
D. $110
Question 5
A central bank is considering a monetary policy to reduce inflation. If the current inflation rate is 10% and the central bank wants to reduce it to 5% within a year, what is the required rate of interest?
A. 10%
B. 15%
C. 20%
D. 25%
Question 6
A firm is producing a good with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm increases labor from 100 units to 120 units and capital from 100 units to 120 units, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 7
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal \cost
B. marginal revenue
C. average \cost
D. average revenue
Question 8
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by the equation Qs = 2P - 10, where Qs is the quantity supplied, what is the equilibrium price?
A. ₦5
B. ₦10
C. ₦15
D. ₦20
Question 9
A country's balance of payments account shows a trade deficit of ₦100 billion. If the country's exchange rate is ₦200 per US dollar, what is the equivalent trade deficit in US dollars?
A. ₦500 billion
B. ₦200 billion
C. ₦50 billion
D. ₦10 billion
Question 10
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $25 billion. What is its balance of trade?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 11
A country's agricultural sector accounts for 20% of its GDP. If the country's GDP grows at a rate of 5% per annum, what is the growth rate of the agricultural sector?
A. 4%
B. 5%
C. 6%
D. 7%
Question 12
Consider a perfectly competitive market with a downward-sloping demand curve and a horizontal supply curve. If the market price is initially at $10, and the demand curve shifts to the left by 20%, what will be the new market equilibrium price?
A. ₦8
B. ₦12
C. ₦15
D. ₦18
Question 13
A government is considering implementing a new tax policy to reduce income inequality. The policy involves increa\sing the tax rate on high-income earners and reducing the tax rate on low-income earners. What is the likely effect of this policy on the government's revenue?
A. Increase in revenue
B. Decrease in revenue
C. No change in revenue
D. Uncertain effect on revenue
Question 14
A consumer's indifference curve is downward-sloping because it represents
A. a trade-off between two goods, with each additional unit of one good requiring a sacrifice of another good
B. a consumer's willingness to pay for a good, with higher indifference curves representing higher willingness to pay
C. a consumer's budget constraint, with each point on the curve representing a different combination of goods
D. a consumer's optimal consumption bundle, with each point on the curve representing a different combination of goods
Question 15
A monopolistically competitive firm faces a downward-sloping demand curve due to product differentiation. If the firm increases its price, what will happen to its revenue?
A. Increase in revenue
B. Decrease in revenue
C. No change in revenue
D. Uncertain effect on revenue

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