POST UTME UNILORIN 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's average total \cost (ATC) curve is U-shaped. What does this imply about the firm's production techno\logy?
A. The firm's production techno\logy exhibits decrea\sing returns to scale.
B. The firm's production techno\logy exhibits increa\sing returns to scale.
C. The firm's production techno\logy exhibits cons\tant returns to scale.
D. The firm's production techno\logy exhibits negative returns to scale.
Question 2
The government of Nigeria has implemented a policy to increase the production of rice. However, the policy has led to a decrease in the production of other crops. Which of the following is a consequence of this policy?
A. Increased food security
B. Decreased food security
C. Increased income for farmers
D. Decreased income for farmers
Question 3
A consumer's indifference curve is steeper than another consumer's indifference curve. What can be inferred about the two consumers?
A. The first consumer is more risk-averse than the second consumer.
B. The first consumer is more risk-loving than the second consumer.
C. The first consumer has a higher income than the second consumer.
D. The first consumer has a lower income than the second consumer.
Question 4
Consider a country that imports 100 units of a good and exports 50 units of another good. If the country's trade balance is in deficit by 20 units, what is the value of the trade deficit?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
Question 5
A country's balance of payments is in equilibrium when the current account is equal to the capital account. True or False?
A. True
B. False
C. It dep\ends on the country's economic policies.
D. It dep\ends on the country's trade agreements.
Question 6
A firm's \cost function is given by C = 100 + 2Q + 3Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. 1000
B. 1200
C. 1500
D. 2000
Question 7
Agricultural production in Nigeria is characterized by a high degree of seasonality. What is the main reason for this seasonality?
A. Climate change
B. Soil degradation
C. Seasonal rainfall
D. Lack of irrigation
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the profit-maximizing price?
A. 20
B. 30
C. 40
D. 50
Question 9
A country has a trade deficit of $100 million and a current account deficit of $200 million. U\sing the balance of payments identity, explain how these deficits affect the country's exchange rate.
A. The trade deficit and current account deficit lead to an appreciation of the exchange rate.
B. The trade deficit and current account deficit lead to a depreciation of the exchange rate.
C. The trade deficit and current account deficit have no effect on the exchange rate.
D. The trade deficit and current account deficit lead to a stable exchange rate.
Question 10
A firm is producing a good with a production function given by Q = 2L^0.5K^0.5. The firm's \cost function is C = 10L + 20K. If the firm wants to minimize its \cost, what is the optimal value of L?
A. 10
B. 20
C. 30
D. 40
Question 11
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. The money supply increases.
B. The money supply decreases.
C. The money supply remains unchanged.
D. The money supply becomes uncertain.
Question 12
A firm is producing a good with a production function given by Q = 2L^0.5K^0.5. The firm's \cost function is C = 10L + 20K. If the firm wants to maximize its profit, what is the optimal value of K?
A. 10
B. 20
C. 30
D. 40
Question 13
A firm is considering investing in a new project with a net present value (NPV) of ₦1,000. The firm's \cost of capital is 10%. U\sing the NPV rule, explain whether the firm should invest in the project.
A. The firm should invest in the project because the NPV is positive.
B. The firm should not invest in the project because the NPV is negative.
C. The firm should invest in the project because the NPV is equal to the \cost of capital.
D. The firm should not invest in the project because the NPV is less than the \cost of capital.
Question 14
U\sing the concept of comparative advantage, explain why a country should specialize in producing goods for which it has a lower opportunity \cost.
A. Because it will be able to produce more goods at a lower \cost.
B. Because it will be able to export more goods and earn a higher income.
C. Because it will be able to import more goods and reduce its trade deficit.
D. Because it will be able to reduce its unemployment rate.
Question 15
The government of a country imposes a tax on imports to reduce the trade deficit. However, the tax also increases the \cost of production for domestic firms. U\sing the concept of opportunity \cost, explain how the tax affects the production possibilities frontier (PPF) of the country.
A. The tax shifts the PPF inward, reducing the production possibilities of the country.
B. The tax shifts the PPF outward, increa\sing the production possibilities of the country.
C. The tax has no effect on the PPF of the country.
D. The tax shifts the PPF outward, but also increases the opportunity \cost of producing one good over the other.

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