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POST UTME ESUT 2017 Economics | Objective

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Question 1

The government of a country imposes a tax on imports to raise revenue. The tax is levied on the value of the imported goods. If the tax rate is 10% and the value of the imported goods is ₦100,000, what is the amount of tax paid?

Correct A. ₦10,000

B. ₦9,000

C. ₦11,000

D. ₦12,000

Correct Answer: A

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Question 2

A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the price that maximizes the monopolist's profit?

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 3

A country's GDP is ₦1,000,000,000. The government sp\ends ₦300,000,000 on goods and services. The country's imports are ₦200,000,000. What is the country's trade balance?

A. ₦100,000,000

Correct B. ₦200,000,000

C. ₦300,000,000

D. ₦400,000,000

Correct Answer: B

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Question 4

A firm's production function is given by Q = 2L^0.5K^0.5. The firm's \cost function is given by C = 10L + 20K. What is the firm's profit-maximizing level of labor?

A. 10

B. 20

Correct C. 30

D. 40

Correct Answer: C

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Question 5

A country's trade balance is given by TB = X - M, where X is the value of exports and M is the value of imports. If the country's exports are ₦500,000,000 and its imports are ₦300,000,000, what is the country's trade balance?

A. ₦100,000,000

Correct B. ₦200,000,000

C. ₦300,000,000

D. ₦400,000,000

Correct Answer: B

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Question 6

A monopolistically competitive firm is faced with a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?

A. Total revenue will increase

Correct B. Total revenue will decrease

C. Total revenue will remain the same

D. Total revenue will increase at first, then decrease

Correct Answer: B

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Question 7

A consumer has a utility function given by ( U(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?

Correct A. x = 200, y = 100

B. x = 150, y = 150

C. x = 100, y = 200

D. x = 200, y = 200

Correct Answer: A

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Question 8

A country's GDP is ₦100 billion and its GNP is ₦120 billion. What is the country's net factor income from abroad?

Correct A. ₦20 billion

B. ₦30 billion

C. ₦40 billion

D. ₦50 billion

Correct Answer: A

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Question 9

A firm is faced with a perfectly elastic demand curve. If the firm increases its price, what will happen to its total revenue?

A. Total revenue will increase

Correct B. Total revenue will decrease

C. Total revenue will remain the same

D. Total revenue will increase at first, then decrease

Correct Answer: B

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Question 10

A country's balance of payments is in equilibrium. If the country's imports increase by ₦10 billion, what will happen to its trade balance?

A. Trade balance will increase

Correct B. Trade balance will decrease

C. Trade balance will remain the same

D. Trade balance will increase at first, then decrease

Correct Answer: B

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Question 11

A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm's marginal revenue function is MR(x) = 100 - 4x, find the value of x that maximizes revenue.

A. 20

Correct B. 25

C. 30

D. 35

Correct Answer: B

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Question 12

A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, find the optimal values of x and y.

A. x = 2, y = 4

Correct B. x = 3, y = 3

C. x = 4, y = 2

D. x = 5, y = 1

Correct Answer: B

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Question 13

A firm's \cost function is given by C(x) = 100 + 2x^2. If the firm's revenue function is R(x) = 100x - 2x^2, find the value of x that minimizes \cost.

Correct A. 10

B. 20

C. 30

D. 40

Correct Answer: A

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Question 14

A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's utility function is U(x,y) = 2x + 3y, find the optimal values of x and y.

Correct A. x = 3, y = 3

B. x = 4, y = 2

C. x = 5, y = 1

D. x = 6, y = 0

Correct Answer: A

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Question 15

A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm's marginal revenue function is MR(x) = 100 - 4x, find the value of x that maximizes revenue.

A. 20

Correct B. 25

C. 30

D. 35

Correct Answer: B

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Question 16

A country's economic growth is influenced by its human capital, natural resources, and techno\logical advancements. However, the relationship between these factors is complex and can be described u\sing the following equation: $ Y = f\( H, R, T \ $). If the country's human capital increases by 10% and its natural resources decrease by 5%, while techno\logical advancements remain cons\tant, what is the expected change in economic growth, assuming the partial derivatives are: $ ∂Y/∂H = 0.8 $, $ ∂Y/∂R = -0.2 $, and $ ∂Y/∂T = 0.3 $?

Correct A. -3%

B. -1%

C. 1%

D. 3%

Correct Answer: A

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Question 17

A firm's demand for a product is given by the equation: $ Q_d = 100 - 2P + 5Y $, where $ Q_d $ is the quantity demanded, (P) is the price, and (Y) is the income. If the price is $10 and the income is $500, what is the quantity demanded?

A. 50

B. 75

Correct C. 100

D. 125

Correct Answer: C

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Question 18

A country's balance of payments is given by the following equation: $ BOP = X - M $, where (BOP) is the balance of payments, (X) is the exports, and (M) is the imports. If the exports are $100 and the imports are $80, what is the balance of payments?

Correct A. $10

B. $20

C. $30

D. $40

Correct Answer: A

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Question 19

A firm's supply of a product is given by the equation: $ Q_s = 50 + 2P $, where $ Q_s $ is the quantity supplied, and (P) is the price. If the price is $10, what is the quantity supplied?

A. 50

B. 60

Correct C. 70

D. 80

Correct Answer: C

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Question 20

A country's tax revenue is given by the equation: $ TR = T \times Y $, where (TR) is the tax revenue, (T) is the tax rate, and (Y) is the income. If the tax rate is 20% and the income is $1000, what is the tax revenue?

A. $100

Correct B. $200

C. $300

D. $400

Correct Answer: B

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Question 21

The concept of diminishing marginal utility is a fundamental principle in consumer behavior. Which of the following best describes this concept?

A. The more a consumer buys of a good, the lower the price they are willing to pay for it.

B. The more a consumer buys of a good, the higher the satisfaction they derive from it.

Correct C. The more a consumer buys of a good, the lower the marginal utility they derive from it.

D. The more a consumer buys of a good, the higher the price they are willing to pay for it.

Correct Answer: C

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Question 22

A firm's supply curve is upward-sloping, indicating that as the price of a good increases, the quantity supplied also increases. What is the likely reason for this?

A. The firm is experiencing economies of scale.

B. The firm is experiencing diseconomies of scale.

C. The firm is facing a decrease in the opportunity \cost of production.

Correct D. The firm is facing an increase in the opportunity \cost of production.

Correct Answer: D

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Question 23

Agricultural development is crucial for economic growth in Nigeria. Which of the following is a major benefit of agricultural development?

A. Increased employment opportunities.

B. Improved s\tandard of living.

Correct C. Increased food security.

D. Increased foreign exchange earnings.

Correct Answer: C

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Question 24

The government of Nigeria imposes a tax on imported goods to raise revenue. What is the likely effect of this tax on the quantity of the good imported?

A. The quantity of the good imported increases.

Correct B. The quantity of the good imported decreases.

C. The quantity of the good imported remains the same.

D. The quantity of the good imported increases in the short run but decreases in the long run.

Correct Answer: B

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Question 25

A consumer has a budget constraint of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. What is the consumer's optimal consumption bundle?

A. 1 unit of A and 2 units of B.

Correct B. 2 units of A and 1 unit of B.

C. 3 units of A and 1 unit of B.

D. 1 unit of A and 3 units of B.

Correct Answer: B

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