POST UTME UNIOSUN 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm faces a demand curve given by Q = 100 - 2P and a marginal revenue function MR = 200 - 4P. Find the profit-maximizing price and quantity.
A. P = 50, Q = 25
B. P = 75, Q = 12.5
C. P = 100, Q = 0
D. P = 0, Q = 100
Question 2
A firm is considering two different production processes to produce a certain good. 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 good is ₦70 per unit, which process should the firm choose to maximize its profit?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 3
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what should be the price of the good?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm uses 100 units of labor and 400 units of capital, find the output.
A. 200
B. 400
C. 600
D. 800
Question 5
A consumer has a budget of $20 and faces prices of $2 and $3 for goods x and y respectively. If the consumer's utility function is U(x, y) = 2x + 3y, find the optimal consumption bundle.
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 4, y = 1
D. x = 1, y = 4
Question 6
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the exports and M is the imports. If the country's exports are ₦100 billion and its imports are ₦120 billion, find the balance of payments.
A. ₦20 billion
B. ₦40 billion
C. ₦60 billion
D. ₦80 billion
Question 7
The Marshall-Lerner condition states that a country will experience an improvement in its balance of payments if the sum of the elasticities of demand for imports and exports exceeds 1. What is the implication of this condition for a country with an inelastic demand for imports and exports?
A. The country will experience a deterioration in its balance of payments.
B. The country will experience no change in its balance of payments.
C. The country will experience an improvement in its balance of payments.
D. The country will experience a worsening of its trade deficit.
Question 8
A consumer's budget constraint is given by the equation 2x + 3y = 12. What is the consumer's opportunity \cost of purcha\sing one more unit of good x?
A. 2
B. 3
C. 4
D. 5
Question 9
A firm's \cost function is given by the equation C = 10L + 20K, where C is the \cost, L is the labor, and K is the capital. If the firm wants to minimize its \cost and the price of labor is $10 per hour, what is the optimal level of capital?
A. $100
B. $200
C. $300
D. $400
Question 10
A firm's \cost function is given by C = 2L + 3K. If the firm's labor input is 10 and capital input is 20, what is the firm's total \cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 11
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape for the consumer's marginal rate of substitution (MRS)?
A. The MRS is cons\tant
B. The MRS is decrea\sing
C. The MRS is increa\sing
D. The MRS is zero
Question 12
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 0.5, find the price at which the quantity demanded is 60 units.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. What is the difference between GDP and GNP?
A. GDP includes income earned by foreign residents, while GNP excludes income earned by domestic residents.
B. GDP excludes income earned by foreign residents, while GNP includes income earned by domestic residents.
C. GDP includes income earned by domestic residents, while GNP excludes income earned by foreign residents.
D. GDP excludes income earned by domestic residents, while GNP includes income earned by foreign residents.
Question 14
A country's GDP is ₦1,000,000,000, its imports are ₦200,000,000, and its exports are ₦300,000,000. What is the country's balance of trade?
A. ₦100,000,000 surplus
B. ₦100,000,000 deficit
C. ₦200,000,000 surplus
D. ₦200,000,000 deficit
Question 15
A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. What is the firm's profit?
A. ₦300
B. ₦400
C. ₦500
D. ₦600

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