POST UTME UNIPORT 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A perfectly competitive market structure is characterized by the presence of many firms producing a homogeneous product, with each firm having no control over the market price. Which of the following is a consequence of this market structure?
A. Firms are able to set their own prices.
B. Firms are price-takers, meaning they have no control over the market price.
C. Firms are able to collude with each other to set prices.
D. Firms are able to produce differentiated products.
Question 2
A country is experiencing a recession, and its GDP is decrea\sing. However, its GNP is increa\sing. What is the likely cause of this phenomenon?
A. The country is experiencing a decrease in its population.
B. The country is experiencing an increase in its net factor income from abroad.
C. The country is experiencing a decrease in its net factor income from abroad.
D. The country is experiencing an increase in its GDP.
Question 3
Consider a country with a comparative advantage in producing wheat. If the country's production of wheat increases by 20% due to an improvement in techno\logy, and the world price of wheat remains cons\tant, what will be the effect on the country's terms of trade?
A. The country's terms of trade will worsen.
B. The country's terms of trade will improve.
C. The country's terms of trade will remain unchanged.
D. The effect on the country's terms of trade is ambiguous.
Question 4
The following table shows the national income accounts for a country.
A. GDP = 1000
B. GDP = 1200
C. GDP = 1500
D. GDP = 1800
Question 5
A firm has a total revenue function of \( TR = 100x - 2x^2 \) and a total \cost function of \( TC = 50 + 10x + 2x^2 \). What is the profit-maximizing level of output?
A. x = 5
B. x = 10
C. x = 15
D. x = 20
Question 6
A country is experiencing a recession due to a decrease in aggregate demand. If the central bank increases the money supply, what will be the effect on the country's inflation rate?
A. The inflation rate will increase.
B. The inflation rate will decrease.
C. The inflation rate will remain unchanged.
D. The effect on the inflation rate is ambiguous.
Question 7
A country's GDP is ₦1,000,000,000,000 and its GNP is ₦1,100,000,000,000. What is the country's net factor income from abroad?
A. ₦100,000,000,000
B. ₦200,000,000,000
C. ₦300,000,000,000
D. ₦400,000,000,000
Question 8
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor and K is capital. If the firm's labor and capital are fixed at 16 and 9 units respectively, calculate the opportunity \cost of labor.
A. ₦6
B. ₦12
C. ₦18
D. ₦24
Question 9
A government is considering implementing a new policy to promote agricultural production in a specific region. The policy includes providing subsidies to farmers for the purchase of inputs such as seeds and fertilizers. If the government allocates ₦100 million for the subsidies, and the subsidy rate is 20% of the total \cost of inputs, calculate the total \cost of inputs that the farmers will bear.
A. ₦400 million
B. ₦500 million
C. ₦600 million
D. ₦700 million
Question 10
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5, where Q is the quantity of the good produced, L is the amount of labor used, and K is the amount of capital used. If the firm is currently u\sing 100 units of labor and 100 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 3
Question 11
The money supply is the total amount of money available in an economy at any given time. Which of the following is a component of the money supply?
A. Currency in circulation
B. Deposits in commercial banks
C. Time deposits
D. All of the above
Question 12
A firm is considering two different production processes to produce a certain good. Process A requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit. Process B requires an initial investment of ₦150,000 and has a variable \cost of ₦30 per unit. If the firm expects to sell 10,000 units of the good per year, which process should it choose?
A. Process A, because it has a lower initial investment and a higher variable \cost.
B. Process B, because it has a higher initial investment and a lower variable \cost.
C. Process A, because it has a higher initial investment and a lower variable \cost.
D. Process B, because it has a lower initial investment and a higher variable \cost.
Question 13
A firm is considering two different production processes for its 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 firm produces 10,000 units of the product, what is the total \cost of production for each process?
A. Process A: ₦1,500,000, Process B: ₦1,200,000
B. Process A: ₦1,200,000, Process B: ₦1,500,000
C. Process A: ₦1,000,000, Process B: ₦1,000,000
D. Process A: ₦1,500,000, Process B: ₦1,500,000
Question 14
A firm's revenue function is given by R = 2Q - Q^2, where R is revenue and Q is quantity sold. If the firm sells 10 units, calculate the marginal revenue.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 15
A country's GNP is $150 billion, its GDP is $120 billion, and its net factor income from abroad is $10 billion. What is its national income?
A. $160 billion
B. $170 billion
C. $180 billion
D. $190 billion

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