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POST UTME UNIBEN 2022 Economics | Objective

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Question 1

A firm operating in a perfectly competitive market is characterized by which of the following?

A. A \single price setter

Correct B. A firm that is a price taker

C. A firm that produces a homogeneous product

D. A firm that has complete control over the market

Correct Answer: B

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Question 2

A consumer's indifference curve is downward sloping because of the law of?

Correct A. Diminishing marginal utility

B. Diminishing marginal rate of substitution

C. Increa\sing marginal utility

D. Cons\tant marginal utility

Correct Answer: A

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Question 3

A monopolist's demand curve is downward sloping because of the?

Correct A. Law of diminishing marginal utility

B. Law of increa\sing marginal utility

C. Law of diminishing marginal rate of substitution

D. Law of cons\tant marginal utility

Correct Answer: A

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Question 4

A firm's marginal revenue product is the change in?

Correct A. Total revenue

B. Total \cost

C. Marginal \cost

D. Average revenue

Correct Answer: A

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Question 5

A firm's marginal \cost is the change in?

Correct A. Total \cost

B. Total revenue

C. Average \cost

D. Average revenue

Correct Answer: A

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Question 6

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are L = 16 and H = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at this level of inputs?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 7

A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. What is the net factor income from abroad?

Correct A. ₦100 billion

B. ₦50 billion

C. ₦200 billion

D. ₦300 billion

Correct Answer: A

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Question 8

A firm's total revenue (TR) is given by TR = 100Q - 2Q^2, where Q is the quantity sold. If the firm sells 10 units, what is its total revenue?

Correct A. ₦800

B. ₦900

C. ₦1,000

D. ₦1,100

Correct Answer: A

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Question 9

A country's balance of payments (BOP) is given by BOP = X - M, where X is exports and M is imports. If the country's exports are ₦500 billion and its imports are ₦600 billion, what is its balance of payments?

A. ₦100 billion

Correct B. ₦50 billion

C. ₦200 billion

D. ₦300 billion

Correct Answer: B

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Question 10

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are L = 16 and H = 9, respectively, what is the marginal product of capital (MPK) when the firm is producing at this level of inputs?

A. 1

B. 2

C. 3

Correct D. 4

Correct Answer: D

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Question 11

The government of a country imposes a tax on imported goods to raise revenue. This tax is an example of a _______ tax.

A. Proportional

B. Progressive

Correct C. Regressive

D. Lump sum

Correct Answer: C

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Question 12

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 price is $20, how many units will be demanded?

A. 40

Correct B. 60

C. 80

D. 100

Correct Answer: B

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Question 13

A country's GDP is $100 billion, its imports are $20 billion, and its exports are $15 billion. What is its net foreign income?

Correct A. $5 billion

B. $10 billion

C. $15 billion

D. $20 billion

Correct Answer: A

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Question 14

A central bank increases the money supply in an economy by buying government bonds from commercial banks. This action is an example of _______ monetary policy.

Correct A. Expansionary

B. Contractionary

C. Neutral

D. Monetarist

Correct Answer: A

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Question 15

A firm's supply curve is given by the equation Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price is $10, how many units will be supplied?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 16

A firm is operating under cons\tant returns to scale. If it increases its output by 20% and its input by 20%, what will be the effect on its average \cost per unit?

A. The average \cost per unit will decrease

B. The average \cost per unit will increase

Correct C. The average \cost per unit will remain the same

D. The effect on average \cost per unit is uncertain

Correct Answer: C

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Question 17

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price and quantity?

A. P = 40, Q = 30

Correct B. P = 50, Q = 25

C. P = 60, Q = 20

D. P = 70, Q = 15

Correct Answer: B

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Question 18

A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its GDP at market price?

A. ₦105 billion

B. ₦110 billion

Correct C. ₦115 billion

D. ₦120 billion

Correct Answer: C

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Question 19

A farmer produces wheat u\sing a production function Q = 100L^0.5K^0.5, where L is labor and K is capital. If the price of wheat is ₦10 per unit, the wage rate is ₦5 per unit of labor, and the rental rate is ₦2 per unit of capital, what is the profit-maximizing level of labor and capital?

Correct A. L = 10, K = 20

B. L = 20, K = 10

C. L = 30, K = 5

D. L = 5, K = 30

Correct Answer: A

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Question 20

A country's GNP is ₦120 billion, its GDP is ₦100 billion, and its net factor income from abroad is ₦10 billion. What is its national income?

A. ₦130 billion

B. ₦135 billion

Correct C. ₦140 billion

D. ₦145 billion

Correct Answer: C

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Question 21

The government of a country decides to implement a policy of price control to reduce inflation. However, this policy leads to a shortage of essential goods. What is the likely effect of this policy on the overall level of economic activity?

A. Increase in economic activity

Correct B. Decrease in economic activity

C. No effect on economic activity

D. Increase in inflation

Correct Answer: B

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Question 22

A firm is considering two different production processes to manufacture a product. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the selling price of the product is ₦120 per unit, which process should the firm choose?

Correct A. Process A

B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer: A

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Question 23

A country's GDP is ₦1 trillion. The government decides to increase the price of a particular good by 20%. What is the likely effect on the country's GDP?

A. Increase in GDP

Correct B. Decrease in GDP

C. No effect on GDP

D. Increase in inflation

Correct Answer: B

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Question 24

A firm is operating in a perfectly competitive market. The demand curve for its product is given by the equation Q = 100 - 2P. The firm's marginal \cost curve is given by the equation MC = 10 + 2Q. What is the firm's profit-maximizing price?

A. ₦40

Correct B. ₦50

C. ₦60

D. ₦70

Correct Answer: B

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Question 25

A country's GNP is ₦1.2 trillion. The government decides to increase the price of a particular good by 15%. What is the likely effect on the country's GNP?

A. Increase in GNP

Correct B. Decrease in GNP

C. No effect on GNP

D. Increase in inflation

Correct Answer: B

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