POST UTME ABU 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 3L + 2K. If the firm has 10 units of labor and 8 units of capital, what is the total output?
A. 20
B. 30
C. 40
D. 50
Question 2
A country's GNP is ₦120 billion, its GDP is ₦110 billion, and its net factor income from abroad is ₦5 billion. What is its national income?
A. ₦125 billion
B. ₦130 billion
C. ₦135 billion
D. ₦140 billion
Question 3
A firm faces a demand curve given by P = 100 - 2Q. What is the price elasticity of demand at a quantity of 20?
A. 0.5
B. 1
C. 2
D. -2
Question 4
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = ₦120, and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 25, y = 5
Question 5
A central bank increases the reserve requirement for commercial banks. What will happen to the money supply?
A. Money supply will increase
B. Money supply will decrease
C. Money supply will remain unchanged
D. Money supply will become infinite
Question 6
A firm's \cost function is given by C = 2L + 3K, where C is the \cost, L is the labor, and K is the capital. If the firm has 5 units of labor and 6 units of capital, what is the \cost?
A. 20
B. 30
C. 40
D. 50
Question 7
The concept of returns to scale in economics implies that as the scale of production increases, the marginal product of labor also increases. What is the opportunity \cost of increa\sing the scale of production?
A. The opportunity \cost is the value of the resources that could have been used for other purposes.
B. The opportunity \cost is the value of the labor that could have been used for other tasks.
C. The opportunity \cost is the value of the goods that could have been produced with the same resources.
D. The opportunity \cost is the value of the land that could have been used for other crops.
Question 8
An increase in the price of a good from P0 to P1 leads to a decrease in the quantity demanded from Q0 to Q1. Which of the following is a possible explanation for this phenomenon?
A. Increase in consumer income
B. Decrease in consumer income
C. Increase in price of a complementary good
D. Decrease in price of a substitute good
Question 9
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What will happen to the equilibrium price and quantity?
A. Equilibrium price will increase and quantity will decrease
B. Equilibrium price will decrease and quantity will increase
C. Equilibrium price will remain unchanged and quantity will decrease
D. Equilibrium price will decrease and quantity will remain unchanged
Question 10
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the export, and M is the import. If the export is ₦100 and the import is ₦80, what is the balance of payments?
A. ₦20
B. ₦40
C. ₦60
D. ₦80
Question 11
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 4
Question 12
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. If the original supply curve was Qs = 100 - 2P and the tax causes the new supply curve to be Qs = 80 - 2P, find the new equilibrium price and quantity.
A. ₦60
B. ₦70
C. ₦80
D. ₦90
Question 13
The concept of national income accounting in economics implies that the value of goods and services produced within a country is measured by the Gross Domestic Product (GDP). What is the opportunity \cost of increa\sing the GDP?
A. The opportunity \cost is the value of the resources that could have been used for other purposes.
B. The opportunity \cost is the value of the labor that could have been used for other tasks.
C. The opportunity \cost is the value of the goods that could have been produced with the same resources.
D. The opportunity \cost is the value of the land that could have been used for other crops.
Question 14
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be allocated to other goods. What is the opportunity \cost of producing more of good X?
A. The opportunity \cost is the value of the next best alternative good that could have been produced with the same resources.
B. The opportunity \cost is the value of the good that is given up when producing more of good X.
C. The opportunity \cost is the value of the good that is produced in excess of the demand.
D. The opportunity \cost is the value of the good that is not produced at all.
Question 15
A country's tax revenue is given by the equation T = tY, where T is the tax revenue, t is the tax rate, and Y is the income. If the tax rate is 10% and the income is ₦1000, what is the tax revenue?
A. ₦100
B. ₦200
C. ₦300
D. ₦400

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: