POST UTME UI 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's supply function is given by Qs = 2P + 3Y, where Qs is the quantity supplied, P is the price, and Y is the income. If the price is ₦20 and the income is ₦100, calculate the quantity supplied.
A. 20
B. 30
C. 40
D. 50
Question 2
A firm's demand curve is given by the equation \( Q = 100 - 2P \). If the firm's marginal revenue (MR) is ₦50, what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 3
A country's balance of payments account is given by the following equation: BOP = X - M + F, where BOP is the balance of payments, X is the exports, M is the imports, and F is the foreign investment. If the exports are ₦50 billion, the imports are ₦40 billion, and the foreign investment is ₦10 billion, calculate the balance of payments.
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 4
A country's balance of payments is in equilibrium when the
A. current account is in surplus
B. capital account is in surplus
C. trade balance is zero
D. all of the above
Question 5
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, and the firm is currently producing at point D, which of the following statements is true?
A. The firm is maximizing its profits.
B. The firm is minimizing its \costs.
C. The firm is producing at its optimal level.
D. The firm is experiencing a loss.
Question 6
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is ₦50, what is the quantity demanded?
A. 50
B. 75
C. 100
D. 125
Question 7
The money multiplier is the ratio of the
A. money supply to the money demand
B. money supply to the income
C. money supply to the price level
D. money demand to the price level
Question 8
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal product of labor
B. marginal product of capital
C. marginal social benefit
D. marginal social \cost
Question 9
The government of Nigeria has implemented a policy to increase agricultural production. The policy includes providing subsidies to farmers and investing in irrigation systems. What is the likely effect of this policy on the agricultural sector?
A. Increase in agricultural production
B. Decrease in agricultural production
C. No change in agricultural production
D. Increase in agricultural prices
Question 10
A country's balance of payments (BOP) is given by the following equation: BOP = X - M + \( F - I \). If the country's exports (X) are $100 billion, its imports (M) are $80 billion, its foreign investment (F) is $20 billion, and its domestic investment (I) is $30 billion, what is the country's BOP?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 11
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 5 units of output, what is the total \cost of production?
A. ₦45
B. ₦55
C. ₦65
D. ₦75
Question 12
A consumer's demand function for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price of the product increases by 10%, what is the percentage change in quantity demanded?
A. 5%
B. 10%
C. 15%
D. 20%
Question 13
A firm's production function is given by \( Q = 2L^0.5K^0.5 \). If the firm's output is 100 units and the price of labor is ₦10 per unit, what is the minimum \cost of production?
A. ₦1000
B. ₦2000
C. ₦5000
D. ₦10000
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases by 10% and its capital (K) remains cons\tant, what is the percentage change in output (Q)?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
A consumer's indifference curve is represented by the equation \( U = 2x + 3y \). If the consumer's income is ₦100 and the prices of goods x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (10, 5)
B. (5, 10)
C. (20, 0)
D. (0, 20)

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