POST UTME UI 2022 Economics | Objective

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Question 1 View Details
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal \cost curve
C. average revenue curve
D. average \cost curve

Correct Answer: A

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Question 2 View Details
A government imposes a tax on a firm's output. The firm's supply curve shifts to the
A. left
Correct B. right
C. upward
D. downward

Correct Answer: B

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Question 3 View Details
A country's balance of payments is in equilibrium when its
A. current account is in surplus
Correct B. current account is in deficit
C. capital account is in surplus
D. capital account is in deficit

Correct Answer: B

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Question 4 View Details
The formula for calculating a country's GDP is
Correct A. C + I + G + \( X - M \)
B. C + I + G + X - M
C. C + I + G + X + M
D. C + I + G - X + M

Correct Answer: A

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Question 5 View Details
A firm's marginal revenue product (MRP) curve is the
Correct 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

Correct Answer: A

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Question 6 View Details
The agricultural sector in Nigeria is characterized by a high degree of fragmentation, with many small-scale farmers operating in the sector. What is the likely impact of this fragmentation on the overall productivity of the sector?
A. Increased productivity due to economies of scale
Correct B. Decreased productivity due to lack of resources
C. No impact on productivity
D. Increased productivity due to increased competition

Correct Answer: B

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Question 7 View Details
The Central Bank of Nigeria (CBN) has implemented a monetary policy aimed at reducing inflation in the country. If the CBN increases the reserve requirement for commercial banks, what is the likely effect on the money supply in the economy?
A. Increase in money supply
Correct B. Decrease in money supply
C. No impact on money supply
D. Increase in interest rates

Correct Answer: B

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Question 8 View Details
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
Correct B. Decrease in demand
C. No impact on demand
D. Increase in supply

Correct Answer: B

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Question 9 View Details
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?
Correct A. -5%
B. -10%
C. -20%
D. -50%

Correct Answer: A

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Question 10 View Details
The Gross Domestic Product (GDP) of a country is $100 billion. If the country's population is 50 million, what is the per capita income?
Correct A. $2000
B. $5000
C. $10,000
D. $20,000

Correct Answer: A

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Question 11 View Details
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
Correct B. No
C. Maybe
D. Insufficient information

Correct Answer: B

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Question 12 View Details
A monopolistically competitive firm is producing at a point on its demand curve where the price elasticity of demand is 0.5. If the firm increases its price by 10%, what will be the percentage change in the quantity demanded?
A. -5%
Correct B. -10%
C. -15%
D. -20%

Correct Answer: B

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Question 13 View Details
The Central Bank of Nigeria (CBN) has implemented a monetary policy to reduce inflation by increa\sing the reserve requirement for commercial banks. If the reserve requirement increases from 10% to 12%, what will be the effect on the money supply?
A. Increase
Correct B. Decrease
C. No change
D. Uncertain

Correct Answer: B

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Question 14 View Details
A farmer in Nigeria is considering whether to produce maize or yams. The market price of maize is ₦150 per bag, and the market price of yams is ₦200 per bag. If the farmer's opportunity \cost of producing maize is ₦120 per bag, and the opportunity \cost of producing yams is ₦180 per bag, which crop should the farmer produce?
Correct A. Maize
B. Yams
C. Both
D. Neither

Correct Answer: A

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Question 15 View Details
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
Correct B. Decrease
C. No change
D. Uncertain

Correct Answer: B

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Question 16 View Details
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is cons\tant and equal to 2, what is the price at which the quantity demanded is 50?
Correct A. ₦20
B. ₦30
C. ₦40
D. ₦50

Correct Answer: A

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Question 17 View Details
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
Correct C. 1500
D. 1800

Correct Answer: C

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Question 18 View Details
The balance of payments (BOP) accounts for a country are given below. What is the value of the trade balance (TB) in the current account (CA)?
A. ₦1000
Correct B. ₦2000
C. ₦3000
D. ₦4000

Correct Answer: B

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Question 19 View Details
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
Correct B. Decrease in interest rate
C. Increase in reserve requirement
D. Decrease in money supply

Correct Answer: B

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Question 20 View Details
A firm is producing a product with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. The firm has 100 units of labor and 200 units of capital. What is the marginal product of labor (MPL) when the firm is producing 100 units of output?
A. 0.5
Correct B. 1
C. 1.5
D. 2

Correct Answer: B

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Question 21 View Details
The Marshall-Lerner condition states that if the sum of the elasticities of demand for exports and supply of imports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. Which of the following is a correct interpretation of this condition?
Correct A. A devaluation will lead to a decrease in imports and an increase in exports.
B. A devaluation will lead to an increase in imports and a decrease in exports.
C. A devaluation will lead to a decrease in imports and a decrease in exports.
D. A devaluation will lead to an increase in imports and an increase in exports.

Correct Answer: A

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Question 22 View Details
A monopolistically competitive firm faces a demand curve with the following equation: 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
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

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Question 23 View Details
A country's government imposes a tax on imports of a particular good. If the pre-tax price of the good is ₦100 and the tax rate is 20%, what is the new price of the good after the tax is imposed?
A. ₦80
Correct B. ₦120
C. ₦100
D. ₦80

Correct Answer: B

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Question 24 View Details
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
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 25 View Details
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
Correct B. ₦120
C. ₦100
D. ₦80

Correct Answer: B

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