POST UTME UNN 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is operating under a monopoly market structure. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will reduce its output.
B. The firm will increase its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Question 2
A firm has a production function F(L, K) = L^0.4 K^0.6. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal mix of labor and capital.
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 15, K = 3
D. L = 3, K = 15
Question 3
A country's GDP is ₦100 billion and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 4
A country's economic planning involves the use of a five-year development plan. Which of the following is a key feature of this plan?
A. It is a short-term plan.
B. It is a long-term plan.
C. It is a flexible plan.
D. It is a rigid plan.
Question 5
Suppose 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 current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 32
B. 48
C. 64
D. 80
Question 6
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) curve is given by MR = 100 - 2Q, find the firm's optimal output level.
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 7
A monopolist faces a demand curve with a cons\tant elasticity of -1. If the firm's marginal revenue (MR) is given by MR = 200 - Q, where Q is the quantity sold, what is the firm's optimal quantity?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 8
A firm's revenue function is given by \( R = 100Q - 2Q^2 \). If the firm's \cost function is \( C = 20 + 5Q \), what is the profit-maximizing quantity of the product?
A. \( Q = 5 \)
B. \( Q = 10 \)
C. \( Q = 15 \)
D. \( Q = 20 \)
Question 9
A country's government imposes a tax on a firm's output. If the firm's supply curve is given by Q = 2P - 10 and the tax rate is 20%, find the firm's new supply curve.
A. Q = 1.6P - 8
B. Q = 1.8P - 9
C. Q = 2P - 8
D. Q = 2.2P - 9
Question 10
A country's GDP at factor \cost is ₦10 trillion and its GDP at market price is ₦11 trillion. What is the value of indirect taxes?
A. ₦1 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 11
A monopolist faces a demand curve given by \( P = 100 - 2Q \). If the firm's marginal \cost is $20, what is the profit-maximizing quantity of the product?
A. \( Q = 20 \)
B. \( Q = 30 \)
C. \( Q = 40 \)
D. \( Q = 50 \)
Question 12
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the equilibrium price and quantity of the product?
A. \( P = MC \)
B. \( P = MR \)
C. \( P = MC = MR \)
D. \( P > MC \)
Question 13
A country's GDP at factor \cost is ₦10 trillion and its GDP at market price is ₦11 trillion. What is the value of indirect taxes?
A. ₦1 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 14
A firm is facing a downward-sloping demand curve. If the firm's marginal revenue (MR) is decrea\sing, what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will reduce its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Question 15
A country's balance of payments (BOP) is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's exports are $100 billion, imports are $80 billion, foreign investment is $20 billion, and domestic investment is $15 billion, what is the country's balance of payments?
A. $5 billion surplus
B. $10 billion surplus
C. $15 billion deficit
D. $20 billion deficit

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