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POST UTME UNIOSUN 2024 Economics | Objective

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Question 1

Consider a country with a fixed exchange rate of ₦5 per US dollar. If the country's GDP at market prices is ₦10 trillion and the implicit price deflator is 1.2, calculate the country's GDP at cons\tant prices.

Correct A. ₦8.33 trillion

B. ₦10 trillion

C. ₦12 trillion

D. ₦15 trillion

Correct Answer: A

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Question 2

A firm's \cost function is given by C(q) = 2q^2 + 10q + 100. If the firm's revenue function is R(q) = 20q, calculate the firm's profit-maximizing output level.

A. 5 units

Correct B. 10 units

C. 15 units

D. 20 units

Correct Answer: B

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Question 3

Consider a country with a trade deficit of ₦500 billion and a current account deficit of ₦200 billion. If the country's GDP is ₦10 trillion, calculate the country's balance of payments deficit.

A. ₦300 billion

B. ₦400 billion

Correct C. ₦500 billion

D. ₦600 billion

Correct Answer: C

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Question 4

A government's budget is given by B = T + H - G, where B is the budget surplus, T is the tax revenue, H is the non-tax revenue, and G is the government exp\enditure. If the government's tax revenue is ₦500 billion, non-tax revenue is ₦200 billion, and government exp\enditure is ₦700 billion, calculate the government's budget surplus.

A. ₦100 billion

Correct B. ₦200 billion

C. ₦300 billion

D. ₦400 billion

Correct Answer: B

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Question 5

Consider a country with a population of 100 million people and a GDP per capita of ₦100,000. If the country's GDP is ₦10 trillion, calculate the country's GDP at cons\tant prices u\sing the implicit price deflator.

Correct A. ₦8.33 trillion

B. ₦10 trillion

C. ₦12 trillion

D. ₦15 trillion

Correct Answer: A

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Question 6

Suppose the demand for a product is given by the inverse demand function p = 100 - 2q, where p is the price and q is the quantity demanded. If the price elasticity of demand is defined as E_d = $ p/q $ * $ dq/dp $, calculate the price elasticity of demand at the quantity demanded of 30 units.

Correct A. -20

B. -10

C. 10

D. 20

Correct Answer: A

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Question 7

A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production functions for the two goods are given by q_A = 2L^0.5K^0.5 and q_B = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, calculate the output of good A.

A. 50

B. 75

Correct C. 100

D. 125

Correct Answer: C

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Question 8

Suppose the government imposes a tax of ₦10 per unit on a firm that produces a good. The firm's supply function is given by q = 100 - 2p. If the firm is willing to pay ₦5 per unit for the good, calculate the quantity supplied.

A. 40

B. 50

Correct C. 60

D. 70

Correct Answer: C

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Question 9

A consumer has a budget of ₦1000 and faces the following prices for two goods: good A \costs ₦200 per unit and good B \costs ₦300 per unit. If the consumer's utility function is given by U = 2x_A + 3x_B, where x_A and x_B are the quantities consumed of good A and good B respectively, calculate the consumer's optimal consumption bundle.

Correct A. (2, 1)

B. (3, 1)

C. (4, 1)

D. (5, 1)

Correct Answer: A

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Question 10

Suppose a country has a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. If the country's exchange rate is fixed at ₦200 per dollar, calculate the country's balance of payments deficit.

A. ₦50 billion

B. ₦75 billion

Correct C. ₦100 billion

D. ₦125 billion

Correct Answer: C

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Question 11

In a perfectly competitive market, the supply curve is upward-sloping because

A. Firms are risk-averse and want to maximize profits

Correct B. Firms are willing to supply more at higher prices

C. Firms have increa\sing marginal \costs

D. Firms are subject to government regulations

Correct Answer: B

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Question 12

A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity?

Correct A. Price increases, quantity decreases

B. Price decreases, quantity increases

C. Price increases, quantity increases

D. Price decreases, quantity decreases

Correct Answer: A

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Question 13

A monopolist faces a demand curve with the following equation: $ Q = 100 - 2P $. If the marginal revenue is $ MR = 50 - 2Q $, what is the profit-maximizing quantity?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 14

A government budget constraint is given by the equation: $ B = T + G $, where ( B ) is the budget, ( T ) is the tax revenue, and ( G ) is the government sp\ending. If the tax revenue is $ T = 1000 $ and the government sp\ending is $ G = 800 $, what is the budget?

Correct A. 1200

B. 1000

C. 800

D. 600

Correct Answer: A

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Question 15

A firm's production function is given by the equation: $ Q = 2L + 3K $, where ( Q ) is the output, ( L ) is the labor, and ( K ) is the capital. If the firm wants to produce 20 units of output, how many units of labor are required?

A. 5

Correct B. 10

C. 15

D. 20

Correct Answer: B

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Question 16

A government imposes a tax on a good to reduce its consumption. If the tax causes the demand curve to shift leftward and the supply curve to shift rightward, what is the likely effect on the equilibrium price and quantity of the good?

Correct A. The equilibrium price will increase, and the equilibrium quantity will decrease.

B. The equilibrium price will decrease, and the equilibrium quantity will increase.

C. The equilibrium price will remain unchanged, and the equilibrium quantity will decrease.

D. The equilibrium price will increase, and the equilibrium quantity will remain unchanged.

Correct Answer: A

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Question 17

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 10% and 20%, respectively, what is the percentage change in output?

A. 10%

B. 20%

Correct C. 30%

D. 40%

Correct Answer: C

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Question 18

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $2 and $3, respectively, and the consumer's income is $10, what is the optimal bundle of goods that maximizes utility?

Correct A. x = 2, y = 1

B. x = 3, y = 2

C. x = 4, y = 3

D. x = 5, y = 4

Correct Answer: A

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Question 19

A country's GDP is $100 billion, and its GNP is $120 billion. If the country has a net factor income from abroad of $10 billion, what is the country's net national product?

A. $110 billion

B. $120 billion

Correct C. $130 billion

D. $140 billion

Correct Answer: C

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Question 20

A firm's demand curve is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is $10, what is the optimal price and quantity that maximize profit?

Correct A. P = $5, Q = 50

B. P = $10, Q = 40

C. P = $15, Q = 30

D. P = $20, Q = 20

Correct Answer: A

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Question 21

A firm's total revenue (TR) is given by the equation TR = 100q - 2q^2, where q is the quantity sold. If the firm sells 20 units, what is its total revenue?

A. 1000

Correct B. 1200

C. 1400

D. 1600

Correct Answer: B

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Question 22

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 is 20, what is the quantity demanded?

Correct A. 60

B. 70

C. 80

D. 90

Correct Answer: A

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Question 23

A farmer produces wheat and corn. The production of wheat requires 2 hours of labor and 1 hour of land, while the production of corn requires 1 hour of labor and 2 hours of land. If the farmer has 4 hours of labor and 3 hours of land available, how much of each crop should he produce to maximize his profit?

Correct A. 2 units of wheat and 1 unit of corn

B. 1 unit of wheat and 2 units of corn

C. 3 units of wheat and 1 unit of corn

D. 1 unit of wheat and 3 units of corn

Correct Answer: A

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Question 24

The government of a country wants to increase its GDP by 10% in a year. If the current GDP is ₦100 billion, what is the required increase in the national income?

A. ₦10 billion

Correct B. ₦20 billion

C. ₦30 billion

D. ₦40 billion

Correct Answer: B

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Question 25

A firm's marginal revenue (MR) is given by the equation MR = 100 - 2q, where q is the quantity sold. If the firm sells 20 units, what is its marginal revenue?

A. 80

B. 90

Correct C. 100

D. 110

Correct Answer: C

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