POST UTME UNIPORT 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a production function Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the marginal product of labor?
A. 20
B. 30
C. 40
D. 50
Question 2
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.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 3
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 4
A country has a GDP of $100 billion and a population of 10 million. What is the GDP per capita?
A. $10,000
B. $20,000
C. $30,000
D. $40,000
Question 5
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will be the effect on its revenue?
A. Revenue will increase as the firm is able to charge a higher price.
B. Revenue will decrease as the firm is unable to sell as much at the higher price.
C. Revenue will remain the same as the firm is able to sell the same quantity at the higher price.
D. Revenue will increase as the firm is able to sell more at the higher price.
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 wants to increase its output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 7
A firm has a \cost function C = 2L + 3K, where C is the \cost, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the marginal \cost of labor?
A. 1
B. 2
C. 3
D. 4
Question 8
A farmer has 100 hectares of land and wants to plant two crops, maize and soybeans. The yield per hectare for maize is 2 tons and for soybeans is 1.5 tons. If the farmer wants to produce a total of 200 tons of maize and soybeans, how many hectares of land should be allocated to each crop?
A. Maize: 60 hectares, Soybeans: 40 hectares
B. Maize: 40 hectares, Soybeans: 60 hectares
C. Maize: 50 hectares, Soybeans: 50 hectares
D. Maize: 30 hectares, Soybeans: 70 hectares
Question 9
Consider a perfectly competitive market with a large number of firms producing a homogeneous product. If the market price falls by 10%, what is the percentage change in the quantity supplied, assuming the supply curve is linear and the firms are price-takers?
A. 5%
B. 10%
C. 15%
D. 20%
Question 10
A country's GDP is $100 billion, and its GNP is $120 billion. What is the country's net factor income from abroad?
A. -20 billion
B. 0
C. 20 billion
D. 40 billion
Question 11
A firm operating under perfect competition faces a market demand curve that is linear and downward-sloping. If the firm's marginal revenue (MR) curve is also linear and downward-sloping, and the MR curve intersects the average revenue (AR) curve at a point where the elasticity of demand is 2, what is the slope of the demand curve?
A. 0.5
B. 1
C. 2
D. 4
Question 12
A firm faces a downward-sloping demand curve and a fixed \cost of ₦100,000. If the price elasticity of demand is -2 and the firm sells 1,000 units at a price of ₦150, the total revenue is ₦150,000. What is the total \cost of producing 1,000 units?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 13
A consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of units of good X and y is the number of units of good Y. If the consumer's income is ₦1,000 and the prices of good X and good Y are ₦50 and ₦75, respectively, what is the optimal bundle of goods?
A. x = 10, y = 5
B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1
Question 14
A country has a trade deficit of $100 million and a current account deficit of $50 million. What is the capital account surplus?
A. $50 million
B. $100 million
C. $150 million
D. $200 million
Question 15
A firm is considering investing in a new project with the following cash flows: ₦100,000 in year 1, ₦120,000 in year 2, and ₦150,000 in year 3. If the discount rate is 10%, what is the present value of the project?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000

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