POST UTME ABU 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Agricultural development in Nigeria has been hindered by several factors, including lack of infrastructure and inadequate funding. Which of the following is a potential solution to these challenges?
A. Increased government subsidies for farmers
B. Improved transportation networks to rural areas
C. Enhanced access to credit facilities for farmers
D. Increased imports of agricultural products
Question 2
A government imposes a subsidy on a firm's output. If the firm's supply curve shifts to the right due to the subsidy, what is the likely effect on the firm's price?
A. The price will increase.
B. The price will decrease.
C. The price will remain unchanged.
D. The price will fluctuate.
Question 3
A monopolist faces a demand curve given by P = 100 - 2Q, where Q is the quantity demanded. If the monopolist's marginal \cost function is MC(Q) = 10 + 2Q, find the quantity that maximizes profit.
A. 10
B. 20
C. 30
D. 40
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units, and the price of labor is $10 per unit, while the price of capital is $20 per unit, what is the likely effect on the firm's profit?
A. The firm's profit will increase.
B. The firm's profit will decrease.
C. The firm's profit will remain unchanged.
D. The firm's profit will fluctuate.
Question 5
A country's GDP is ₦1,000,000,000, and its GNP is ₦1,100,000,000. What is the country's net factor income from abroad?
A. ₦100,000,000
B. ₦200,000,000
C. ₦300,000,000
D. ₦400,000,000
Question 6
A country's GDP is given by the equation Y = C + I + G, where Y is the total output, C is the consumption, I is the investment, and G is the government sp\ending. If the country's consumption function is C = 100 + 0.8Y, the investment function is I = 50 + 0.2Y, and the government sp\ending is G = 200, find the value of Y.
A. 500
B. 600
C. 700
D. 800
Question 7
A consumer is faced with the following utility function: U = 2x + 3y, where x and y are the quantities of two goods consumed. The prices of the goods are $2 and $3, respectively. What is the consumer's budget constraint?
A. 2x + 3y = 10
B. 2x + 3y = 20
C. 2x + 3y = 30
D. 2x + 3y = 40
Question 8
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 and quantity that the firm will produce?
A. P = ₦40, Q = 30
B. P = ₦50, Q = 25
C. P = ₦60, Q = 20
D. P = ₦70, Q = 15
Question 9
A consumer has a budget constraint given by 2x + 3y = 10. If the consumer's utility function is given by U(x, y) = 2x + 3y, what is the consumer's optimal bundle?
A. x = 2, y = 1
B. x = 1, y = 2
C. x = 3, y = 0
D. x = 0, y = 3
Question 10
A country's inflation rate is 5% per annum. If the nominal interest rate is 10% per annum, what is the real interest rate?
A. \( r = 5% \)
B. \( r = 10% \)
C. \( r = 15% \)
D. \( r = 20% \)
Question 11
A country's GDP is ₦1.2 trillion, and its GNP is ₦1.5 trillion. What is the country's net factor income from abroad?
A. ₦300 billion
B. ₦400 billion
C. ₦500 billion
D. ₦600 billion
Question 12
A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left due to the tax, what is the likely effect on the firm's price?
A. The price will increase.
B. The price will decrease.
C. The price will remain unchanged.
D. The price will fluctuate.
Question 13
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's marginal revenue is 50, find the number of units sold.
A. 20
B. 30
C. 40
D. 50
Question 14
Agricultural production in Nigeria is characterized by a high degree of seasonality. Which of the following is a consequence of this seasonality?
A. Increased production \costs
B. Decreased food security
C. Increased food prices
D. Increased agricultural employment
Question 15
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 100. What is the equilibrium price and quantity?
A. P = 50, Q = 50
B. P = 75, Q = 25
C. P = 100, Q = 0
D. P = 0, Q = 100

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