POST UTME UNIPORT 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GNP is ₦180 billion, its imports are ₦35 billion, and its exports are ₦30 billion. What is its net foreign income?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 2
The government of Nigeria has introduced a new policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the availability of fertilizers. However, the policy has been criticized for being too expensive and not addres\sing the root causes of the problem. What is the opportunity \cost of implementing this policy?
A. The opportunity \cost is the reduction in the production of other crops due to the increased focus on rice production.
B. The opportunity \cost is the increase in the price of rice due to the subsidies provided to farmers.
C. The opportunity \cost is the reduction in the government's revenue due to the increased exp\enditure on the policy.
D. The opportunity \cost is the decrease in the quality of life of the people due to the increased focus on rice production.
Question 3
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 current labor and capital inputs are 16 and 9 respectively, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 4
A firm is producing a good with the following revenue function: R(q) = 20q - 0.5q^2. The firm is currently producing 10 units of the good. What is the total revenue of producing 20 units of the good?
A. 300
B. 400
C. 500
D. 600
Question 5
A firm is producing a good with the following \cost function: C(q) = 2q^2 + 10q + 100. The firm is currently producing 10 units of the good. What is the marginal \cost of producing the 11th unit?
A. 20
B. 30
C. 40
D. 50
Question 6
A country's GDP is ₦150 billion, its imports are ₦30 billion, and its exports are ₦25 billion. What is its net foreign income?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 7
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 25 respectively, what is the marginal product of labor?
A. 4L^\( 1/2 \)K^\( 1/2 \)
B. 2L^\( -1/2 \)K^\( 1/2 \)
C. 8L^\( -1/2 \)K^\( 1/2 \)
D. 16L^\( -1/2 \)K^\( 1/2 \)
Question 8
The opportunity \cost of producing one unit of a good is the value of the next best alternative good that could have been produced with the same resources. What is the opportunity \cost of producing 100 units of wheat if the opportunity \cost of producing one unit of wheat is ₦100?
A. ₦10,000
B. ₦100,000
C. ₦1,000,000
D. ₦10,000,000
Question 9
A firm is considering a new investment project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦70,000, Year 3: ₦90,000. U\sing the Net Present Value (NPV) method, calculate the present value of the project's cash flows and determine whether the project is profitable.
A. The present value of the project's cash flows is ₦20,000, and the project is profitable.
B. The present value of the project's cash flows is ₦30,000, and the project is profitable.
C. The present value of the project's cash flows is ₦40,000, and the project is profitable.
D. The present value of the project's cash flows is ₦50,000, and the project is not profitable.
Question 10
A firm is producing a good with the following revenue function: R(q) = 20q - 0.5q^2. The firm is currently producing 10 units of the good. What is the marginal revenue of producing the 11th unit?
A. 15
B. 20
C. 25
D. 30
Question 11
A country's demand for foreign exchange is given by the equation MD = 100 + 2Y, where MD is demand for foreign exchange and Y is income. If the country's income is 500, what is the demand for foreign exchange?
A. 200
B. 300
C. 400
D. 500
Question 12
A monopolistically competitive firm faces the following demand curve: Q = 100 - 2P. The firm's marginal \cost curve is MC = ₦20. U\sing the concept of profit maximization, determine the firm's optimal price and quantity.
A. The firm's optimal price is ₦40, and the optimal quantity is 40 units.
B. The firm's optimal price is ₦50, and the optimal quantity is 50 units.
C. The firm's optimal price is ₦60, and the optimal quantity is 60 units.
D. The firm's optimal price is ₦70, and the optimal quantity is 70 units.
Question 13
The concept of elasticity of supply refers to the responsiveness of the quantity supplied of a good to changes in its price. What is the formula for calculating the price elasticity of supply?
A. % \\frac{\\Delta Q}{Q} \\div \\frac{\\Delta P}{P}
B. % \\frac{\\Delta Q}{P} \\div \\frac{\\Delta P}{Q}
C. % \frac{\Delta Q}{Q} \times \frac{\Delta P}{P}
D. % \frac{\Delta Q}{P} \times \frac{\Delta P}{Q}
Question 14
A firm operating in a perfectly competitive market has a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 4P, what is the firm's optimal price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 4
Question 15
A firm's demand function for a good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is given by MR = 200 - 2Q, what is the firm's optimal price?
A. 20
B. 30
C. 40
D. 50

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: