POST UTME ABU 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, which of the following is the minimum \cost of production?
A. ₦400
B. ₦800
C. ₦1200
D. ₦1600
Question 2
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm's fixed \cost is ₦500 and its variable \cost is ₦5 per unit, what is the firm's total \cost when it produces 10 units?
A. ₦150
B. ₦250
C. ₦350
D. ₦450
Question 3
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 surplus
B. ₦5 billion deficit
C. ₦10 billion surplus
D. ₦10 billion deficit
Question 4
A government plans to implement a new tax policy to reduce income inequality. The policy involves a progressive tax system where higher-income individuals pay a higher tax rate. However, the policy also includes a tax exemption for low-income individuals. What is the opportunity \cost of implementing this policy?
A. The opportunity \cost is the reduction in economic growth due to the increased tax burden on high-income individuals.
B. The opportunity \cost is the increase in tax revenue from high-income individuals.
C. The opportunity \cost is the reduction in tax revenue from low-income individuals.
D. The opportunity \cost is the increase in economic inequality due to the tax exemption for low-income individuals.
Question 5
A firm's revenue function is given by R(x) = 3x^2 - 2x + 1. If the firm's marginal revenue is ₦10 per unit, what is the firm's total revenue when it produces 5 units?
A. ₦150
B. ₦250
C. ₦350
D. ₦450
Question 6
A country's budget is given by the equation B = T + I, where B is budget, T is taxation, and I is interest. If the country's taxation is ₦5 trillion and interest is ₦2 trillion, what is the budget?
A. ₦7 trillion
B. ₦8 trillion
C. ₦9 trillion
D. ₦10 trillion
Question 7
A government imposes a tax of ₦10 on every unit of a good. If the pre-tax price is ₦100, what is the new price after the tax?
A. ₦110
B. ₦105
C. ₦100
D. ₦95
Question 8
A firm is considering two different pricing strategies for a product. Strategy A involves setting a high price for the product to maximize profit, while Strategy B involves setting a low price for the product to maximize market share. What is the opportunity \cost of choo\sing Strategy A over Strategy B?
A. The opportunity \cost is the reduction in market share due to the high price.
B. The opportunity \cost is the reduction in profit due to the low price.
C. The opportunity \cost is the increase in the number of customers who are unable to afford the product.
D. The opportunity \cost is the increase in the number of customers who are willing to pay the high price.
Question 9
A country's government imposes a tax of ₦10 per unit on a good that is produced by a firm. If the firm's supply curve is given by Q = 2P - 10, where Q is the quantity supplied and P is the price, which of the following is the new supply curve after the tax is imposed?
A. Q = 2P - 20
B. Q = 2P - 15
C. Q = 2P - 25
D. Q = 2P - 30
Question 10
A firm is producing at a point where its marginal \cost is equal to its average \cost. If the firm increases its output by 10%, what is the change in its average \cost?
A. Increases by 10%
B. Decreases by 10%
C. Remains the same
D. Increases by 20%
Question 11
A monopolist faces a demand curve with elasticity of -3. If the firm increases its price by 15%, what is the percentage change in quantity demanded?
A. 25%
B. 20%
C. 15%
D. 10%
Question 12
A firm's revenue function is given by R(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm's \cost function is C(x) = x^2 + 5x + 2, what is the profit function?
A. P(x) = x^2 + 5x + 3
B. P(x) = 2x^2 + 5x + 3
C. P(x) = x^2 + 5x + 2
D. P(x) = 2x^2 + 10x + 5
Question 13
A monopolist faces a demand curve given by P = 100 - 2Q. If the firm's marginal \cost is ₦20, what is the optimal quantity to produce?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 14
A firm's demand function is given by Qd = 100 - 2P. If the firm's marginal revenue (MR) is ₦20, what is its price?
A. ₦40
B. ₦30
C. ₦20
D. ₦10
Question 15
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P and the marginal \cost (MC) of production is cons\tant at ₦10, what is the equilibrium price and quantity?
A. ₦50, 50 units
B. ₦40, 60 units
C. ₦30, 70 units
D. ₦20, 80 units

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: