POST UTME ABU 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 2
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The prices of the goods are ₦10 and ₦20 respectively. The consumer's budget constraint is 100 = 10x + 20y. What is the consumer's optimal bundle of goods?
A. x = 5, y = 2
B. x = 4, y = 3
C. x = 3, y = 4
D. x = 2, y = 5
Question 3
A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current labor and capital inputs are L = 16 and H = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the given input levels?
A. 0.5
B. 1
C. 2
D. 4
Question 4
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost curve is MC = 10 + 2Q. What is the profit-maximizing price and quantity for the firm?
A. P = ₦50, Q = 25
B. P = ₦60, Q = 20
C. P = ₦70, Q = 15
D. P = ₦80, Q = 10
Question 5
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 6
A country's economic growth is influenced by its balance of payments. If the balance of payments is in surplus, what is the likely effect on the country's exchange rate?
A. The exchange rate will appreciate.
B. The exchange rate will depreciate.
C. The exchange rate will remain unchanged.
D. The exchange rate will fluctuate.
Question 7
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 produced, L is the amount of labor used, and K is the amount of capital used. If the firm wants to produce 100 units of the good, how much labor and capital should it use?
A. L = 25, K = 25
B. L = 50, K = 50
C. L = 100, K = 100
D. L = 200, K = 200
Question 8
A monopolist faces a downward-sloping demand curve. If the firm increases its price, what will happen to its marginal revenue?
A. Increase
B. Decrease
C. Remain the same
D. Become indeterminate
Question 9
A firm's production function is given by Q = 3L^0.5H^0.5. If the firm's current labor and capital inputs are L = 25 and H = 16, respectively, what is the total product of labor and capital?
A. 30
B. 40
C. 50
D. 60
Question 10
A firm is facing a demand curve given by Q = 100 - 2P. The firm's marginal \cost curve is MC = 10 + 2Q. What is the firm's profit-maximizing price and quantity?
A. P = ₦50, Q = 25
B. P = ₦60, Q = 20
C. P = ₦70, Q = 15
D. P = ₦80, Q = 10
Question 11
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The prices of the goods are ₦10 and ₦20 respectively. The consumer's budget constraint is 100 = 10x + 20y. What is the consumer's optimal bundle of goods?
A. x = 5, y = 2
B. x = 4, y = 3
C. x = 3, y = 4
D. x = 2, y = 5
Question 12
The following diagram shows the money market equilibrium. If the money supply increases, what will happen to the interest rate?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 13
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its balance of trade?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 14
A firm's \cost function is given by the equation C(x) = 50 + 10x + 2x^2. If the firm produces 15 units, what is its total \cost?
A. ₦275
B. ₦325
C. ₦375
D. ₦425
Question 15
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 income is ₦1000 and the prices of the two goods are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?
A. (200, 200)
B. (300, 100)
C. (400, 0)
D. (0, 0)

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