POST UTME IMS U 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a perfectly competitive market with a large number of firms producing a homogeneous product. If the market price falls by 10%, what will be the effect on the quantity supplied by each firm in the short run?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 2
A government increases the tax on a good. What will be the effect on the supply curve?
A. The supply curve will shift to the left
B. The supply curve will shift to the right
C. The supply curve will remain unchanged
D. The supply curve will shift to the left in the short run but to the right in the long run
Question 3
A country's balance of payments is given by BOP = X - M. If the country's exports are 100 and imports are 80, what is the balance of payments?
A. ₦20
B. ₦10
C. ₦5
D. ₦15
Question 4
A firm is producing at the point where its marginal revenue equals its marginal \cost. What is the firm's profit-maximizing output?
A. The firm's profit-maximizing output is the quantity where MR = MC
B. The firm's profit-maximizing output is the quantity where MR > MC
C. The firm's profit-maximizing output is the quantity where MR < MC
D. The firm's profit-maximizing output is the quantity where MR = MC and MR > MC
Question 5
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's \cost function is C(x) = 3x^2 + 2x + 5, what is the profit function?
A. -x^2 + 3x - 4
B. x^2 - 3x + 4
C. x^2 + 3x - 4
D. -x^2 - 3x + 4
Question 6
A firm's \cost function is given by \( C = 2L + 3K \). If the firm's output is 100 units and the price of labor is ₦10, find the optimal input combination of labor and capital.
A. (L,K) = (5, 5)
B. (L,K) = (10, 10)
C. (L,K) = (15, 15)
D. (L,K) = (20, 20)
Question 7
A government imposes a tax of ₦10 on a good that is sold at a price of ₦50. If the demand for the good is given by \( Q = 100 - 2P \) and the supply of the good is given by \( Q = 2P - 100 \), find the new equilibrium price and quantity.
A. P = 40, Q = 60
B. P = 30, Q = 70
C. P = 20, Q = 80
D. P = 10, Q = 90
Question 8
The demand function for a product is given by p = 100 - 2q, where p is the price and q is the quantity demanded. If the supply function is given by p = 2q + 10, what is the equilibrium price and quantity?
A. p = 40, q = 15
B. p = 60, q = 20
C. p = 80, q = 25
D. p = 100, q = 30
Question 9
A country's GDP is given by GNP = 1000 + 0.2Y, where Y is the national income. If the national income is 5000, what is the GDP?
A. 2000
B. 3000
C. 4000
D. 5000
Question 10
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q. If the firm produces 5 units of output, what is the total \cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 11
The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit
A. increases
B. decreases
C. remains cons\tant
D. becomes negative
Question 12
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's output is 100 units and the price of labor is ₦10, find the optimal input combination of labor and capital.
A. (L,K) = (5, 5)
B. (L,K) = (10, 10)
C. (L,K) = (15, 15)
D. (L,K) = (20, 20)
Question 13
A firm's average \cost curve is given by the equation \( AC = \frac{w}{x} + 100 \), where (w) is the wage rate and (x) is the number of units produced. If the wage rate is ₦200 per unit and the firm produces 100 units, what is the average \cost?
A. ₦250
B. ₦200
C. ₦150
D. ₦100
Question 14
A monopolistically competitive firm's demand curve is downward-sloping because it is a
A. price-taker
B. price-maker
C. price-setter
D. price-follower
Question 15
A central bank implements a monetary policy that increases the money supply. What will be the effect on the price level?
A. The price level will increase
B. The price level will decrease
C. The price level will remain unchanged
D. The price level will increase in the short run but decrease in the long run

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