POST UTME IMS U 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government increases the tax rate on a particular good from 10% to 20%. If the demand for the good is given by Q = 100 - 2P and the supply is given by Q = 2P - 10, what is the new equilibrium price?
A. ₦15
B. ₦20
C. ₦25
D. ₦30
Question 2
A consumer's demand function for a good is given by Q = 100 - 2P. If the price of the good is ₦50, what is the consumer's demand?
A. 20
B. 30
C. 40
D. 50
Question 3
A firm is considering two different production processes. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the firm produces 10,000 units, which process will result in lower \costs?
A. Process A
B. Process B
C. Both processes will result in the same \costs
D. Neither process will result in lower \costs
Question 4
Consider a country with a money supply of ₦500 billion and a velocity of circulation of 2. If the country's GDP is ₦10 trillion, calculate the country's inflation rate.
A. 2%
B. 4%
C. 6%
D. 8%
Question 5
Consider a monopolistically competitive firm facing a market demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is cons\tant at ₦10. If the firm's price elasticity of demand is 2, what is the optimal quantity of output to produce?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 6
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's consumption is $500 billion, investment is $200 billion, government sp\ending is $300 billion, exports are $400 billion, and imports are $300 billion, what is the country's GDP?
A. $1500
B. $1500.00
C. $1500.00
D. $1500.00
Question 7
The government of a country imposes a tariff of 20% on imported goods. If the price of the imported good is $100, what is the new price after the tariff is imposed?
A. $120
B. $120.00
C. $120.00
D. $120.00
Question 8
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦80 billion, what is the balance of payments?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 9
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, calculate the consumer's optimal consumption bundle.
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 10
A firm's \cost function is given by C = 2Q^2 + 3Q, where Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 11
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. What is the marginal \cost function?
A. 4q + 10
B. 2q^2 + 10q + 5
C. q^2 + 5q
D. q^2 + 10q
Question 12
A firm is considering two different production processes. Process A has a fixed \cost of ₦100 and a variable \cost of ₦10 per unit, while Process B has a fixed \cost of ₦200 and a variable \cost of ₦5 per unit. If the firm produces 20 units, what is the total \cost of each process?
A. Process A: ₦300, Process B: ₦250
B. Process A: ₦250, Process B: ₦300
C. Process A: ₦350, Process B: ₦350
D. Process A: ₦250, Process B: ₦250
Question 13
Consider a perfectly competitive market with a market demand curve given by Q = 100 - 2P. The market supply curve is given by Q = 2P - 10. If the government imposes a tax of ₦5 on the firm's output, what is the new equilibrium price and quantity?
A. Price = ₦20, Quantity = 40 units
B. Price = ₦25, Quantity = 50 units
C. Price = ₦30, Quantity = 60 units
D. Price = ₦35, Quantity = 70 units
Question 14
A firm's supply function is given by Q = 2P + 10. If the price of the good is ₦20, what is the firm's supply?
A. 30
B. 40
C. 50
D. 60
Question 15
A central bank increases the reserve requirement for commercial banks from 10% to 20%. If the money multiplier is 4, what is the new money supply?
A. ₦100,000
B. ₦200,000
C. ₦400,000
D. ₦800,000

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