POST UTME UI 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government of Nigeria has implemented a policy to increase agricultural production by providing subsidies to farmers. If the subsidy increases the supply of maize from 100 bags to 120 bags, and the demand for maize remains cons\tant at 80 bags, what will be the effect on the price of maize?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 2
A government imposes a tax on a firm's output. The firm's supply curve shifts to the
A. left
B. right
C. upward
D. downward
Question 3
The formula for calculating a country's GDP is
A. C + I + G + \( X - M \)
B. C + I + G + X - M
C. C + I + G + X + M
D. C + I + G - X + M
Question 4
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 50 - 2Q, what is the firm's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
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
The elasticity of demand for a particular good is 0.5. If the price of the good increases by 10%, what is the likely percentage change in the quantity demanded?
A. -5%
B. -10%
C. -20%
D. -50%
Question 7
A central bank uses the following monetary policy tools to control inflation: open market operations, reserve requirements, and discount rate. Which of the following is NOT a direct effect of an increase in the discount rate?
A. Increase in money supply
B. Decrease in interest rate
C. Increase in reserve requirement
D. Decrease in money supply
Question 8
A firm produces two goods, A and B. The production function for good A is given by Q_A = 10L^0.5K^0.5, where L is labor and K is capital. The production function for good B is given by Q_B = 5L^0.2K^0.8. If the firm has 100 units of labor and 200 units of capital, what is the total output of the firm?
A. 1000
B. 1200
C. 1500
D. 1800
Question 9
Agricultural development in Nigeria has been hindered by the lack of access to credit facilities for farmers. Discuss the impact of this on the agricultural sector and suggest possible solutions.
A. The lack of access to credit facilities for farmers has led to a decrease in agricultural production, resulting in food shortages and increased prices.
B. The lack of access to credit facilities for farmers has led to an increase in agricultural production, resulting in a surplus of food and decreased prices.
C. The lack of access to credit facilities for farmers has had no impact on agricultural production.
D. The lack of access to credit facilities for farmers has led to an increase in agricultural production, but at the \cost of environmental degradation.
Question 10
A firm's total revenue (TR) is given by TR = 2Q^2 + 10Q. If the firm's marginal \cost (MC) is given by MC = Q + 5, what is the firm's optimal quantity?
A. 10
B. 20
C. 30
D. 40
Question 11
A firm's marginal revenue product (MRP) curve is the
A. sum of the marginal revenue (MR) and marginal product (MP) curves
B. difference between the MR and MP curves
C. product of the MR and MP curves
D. ratio of the MR to the MP curves
Question 12
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. Suppose the exchange rate of Nigeria's currency, the Naira, appreciates by 10% against the US dollar. If the price of Nigeria's exports increases by 15% and the price of its imports increases by 8%, will Nigeria's balance of payments improve?
A. Yes
B. No
C. Maybe
D. Insufficient information
Question 13
A monopolistically competitive firm is operating in a market with a large number of firms. If the firm increases its price, what is the likely effect on its demand?
A. Increase in demand
B. Decrease in demand
C. No impact on demand
D. Increase in supply
Question 14
A country's balance of payments is in equilibrium when its
A. current account is in surplus
B. current account is in deficit
C. capital account is in surplus
D. capital account is in deficit
Question 15
A country's government imposes a tariff on imports of a particular good. If the pre-tariff price of the good is ₦100 and the tariff rate is 20%, what is the new price of the good after the tariff is imposed?
A. ₦80
B. ₦120
C. ₦100
D. ₦80

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