POST UTME UNIPORT 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a total revenue function given by TR = 2Q^2 - 10Q + 20. What is the firm's marginal revenue function?
A. MR = 4Q - 10
B. MR = 2Q - 5
C. MR = Q - 2
D. MR = 2Q + 5
Question 2
A central bank is considering a monetary policy to reduce inflation. If the current inflation rate is 10% and the central bank wants to reduce it to 5% within the next 2 years, what will be the required annual rate of interest?
A. 10%
B. 15%
C. 20%
D. 25%
Question 3
A perfectly competitive firm's marginal revenue (MR) curve is downward sloping. What is the relationship between the firm's marginal \cost (MC) and its average total \cost (ATC)?
A. MC > ATC
B. MC < ATC
C. MC = ATC
D. MC > ATC > AVC
Question 4
A firm is considering two different production processes for producing a certain good. Process A has a fixed \cost of ₦1000 and a variable \cost of ₦5 per unit, while process B has a fixed \cost of ₦500 and a variable \cost of ₦10 per unit. If the firm produces 100 units of the good, what will be the total \cost of production for each process?
A. Process A: ₦1500, Process B: ₦1500
B. Process A: ₦1500, Process B: ₦2000
C. Process A: ₦2000, Process B: ₦1500
D. Process A: ₦2000, Process B: ₦2000
Question 5
A firm has a budget of ₦500 million for a project. If the project requires an initial investment of ₦200 million and a recurring exp\enditure of ₦100 million per year, what is the maximum number of years that the firm can sustain the project?
A. 5 years
B. 6 years
C. 7 years
D. 8 years
Question 6
A firm is considering investing in a new project that has a net present value (NPV) of ₦100,000. However, the firm's \cost of capital is 10% per annum. U\sing the NPV rule, determine whether the firm should invest in the project.
A. The firm should invest in the project because the NPV is positive.
B. The firm should not invest in the project because the NPV is negative.
C. The firm should invest in the project because the NPV is greater than the \cost of capital.
D. The firm should not invest in the project because the NPV is less than the \cost of capital.
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's \cost of labor is ₦100 per unit and the \cost of capital is ₦200 per unit, calculate the firm's total \cost function.
A. TC(L,K) = 100L + 200K
B. TC(L,K) = 200L + 100K
C. TC(L,K) = 300L + 400K
D. TC(L,K) = 400L + 300K
Question 8
A monopoly firm faces a demand curve given by Qd = 100 - 2P. The firm's marginal \cost curve is given by MC = 5. Calculate the firm's optimal price and quantity.
A. P = ₦50, Q = 75 units
B. P = ₦75, Q = 50 units
C. P = ₦100, Q = 25 units
D. P = ₦125, Q = 0 units
Question 9
A consumer's utility function is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 50, what is the optimal bundle of goods (x, y) that the consumer should consume?
A. x = 2, y = 5
B. x = 5, y = 2
C. x = 3, y = 4
D. x = 4, y = 3
Question 10
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 11
A monopolist faces a demand curve with the following equation: Qd = 100 - 2P. If the firm's marginal \cost (MC) is cons\tant at ₦10, what is the optimal price (P) and quantity (Q) that the firm should produce?
A. P = ₦40, Q = 30
B. P = ₦30, Q = 40
C. P = ₦20, Q = 50
D. P = ₦50, Q = 20
Question 12
Consider a firm that produces two goods, X and Y. The production function for good X is given by \( Q_X = 2L^2 + 3K \), where L is labor and K is capital. The production function for good Y is given by \( Q_Y = 4L^2 - 2K \). If the firm has 100 units of labor and 50 units of capital, what is the total output of the firm?
A. 200
B. 250
C. 300
D. 350
Question 13
A firm is producing a good with the following production function: Q = 2L^2 + 3K, where L is labor and K is capital. If the firm's \cost function is C(L, K) = 2L + 3K, what is the firm's average \cost (AC) function?
A. AC(L, K) = 2L + 3K
B. AC(L, K) = 2L^2 + 3K
C. AC(L, K) = 2L + 3K^2
D. AC(L, K) = 2L^2 + 3K^2
Question 14
A firm is considering investing in a new project that has a net present value (NPV) of ₦100,000. However, the firm's \cost of capital is 10% per annum. U\sing the NPV rule, determine whether the firm should invest in the project.
A. The firm should invest in the project because the NPV is positive.
B. The firm should not invest in the project because the NPV is negative.
C. The firm should invest in the project because the NPV is greater than the \cost of capital.
D. The firm should not invest in the project because the NPV is less than the \cost of capital.
Question 15
A consumer has the following utility function: \( U = 2x + 3y \), 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 has a budget of $10, what is the optimal bundle of goods that the consumer will consume?
A. (2, 2)
B. (3, 1)
C. (4, 0)
D. (0, 4)

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