Practice post utme ims u economics 2023 Past Questions

Question 1

The concept of opportunity \cost is a fundamental principle in economics that refers to the value of the next best alternative that is given up when a choice is made. Which of the following best describes the concept of opportunity \cost?

A. The value of the next best alternative that is given up when a choice is made.

B. The value of the alternative that is chosen.

C. The value of the alternative that is not chosen.

D. The value of the alternative that is given up.

Question 2

The concept of GDP (Gross Domestic Product) is a fundamental principle in national income accounting that refers to the total value of all final goods and services produced within a country's borders during a specific time period. Which of the following best describes the concept of GDP?

A. The total value of all final goods and services produced within a country's borders during a specific time period.

B. The total value of all intermediate goods and services produced within a country's borders during a specific time period.

C. The total value of all final goods and services produced outside a country's borders during a specific time period.

D. The total value of all intermediate goods and services produced outside a country's borders during a specific time period.

Question 3

What is the concept of comparative advantage in international trade?

A. The ability of a country to produce a good or service at a lower opportunity \cost than another country

B. The ability of a country to produce a good or service at a higher opportunity \cost than another country

C. The ability of a country to produce a good or service at the same opportunity \cost as another country

D. The ability of a country to produce a good or service at a different opportunity \cost than another country

Question 4

A firm is considering two investment projects. Project A has a net present value (NPV) of ₦100,000 and a payback period of 5 years. Project B has an NPV of ₦120,000 and a payback period of 4 years. Which project should the firm choose?

A. Project A

B. Project B

C. Both projects are equally good

D. Neither project is good

Question 5

What is the primary difference between a monopoly and a monopsony?

A. Monopoly is a \single seller, while monopsony is a \single buyer

B. Monopoly is a \single buyer, while monopsony is a \single seller

C. Monopoly is a market structure where a \single firm supplies the entire market, while monopsony is a market structure where a \single firm buys the entire market

D. Monopoly and monopsony are the same market structure

Question 6

A country's balance of payments account is given by the equation BOP = X - M + \( F - I \). If the country's exports are 500, imports are 300, foreign investment is 200, and domestic investment is 100, calculate the country's balance of payments.

A. 200

B. 300

C. 400

D. 500

Question 7

A consumer has a utility function given by U(x,y) = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 12. What is the consumer's optimal bundle of x and y?

A. (2,4)

B. (4,2)

C. (3,3)

D. (6,0)

Question 8

The law of demand states that as the price of a good increases, the quantity demanded of that good decreases, ceteris paribus. Which of the following is a consequence of the law of demand?

A. The demand curve is upward-sloping.

B. The demand curve is downward-sloping.

C. The supply curve is upward-sloping.

D. The supply curve is downward-sloping.

Question 9

The government of a country imposes a tax on a particular good. If the demand for the good is given by the equation Qd = 100 - 2P and the supply of the good is given by the equation Qs = 2P - 50, find the new equilibrium price and quantity after the tax is imposed.

A. ₦16.67

B. ₦20

C. ₦25

D. ₦30

Question 10

A firm is producing a good u\sing two inputs, labor (L) and capital (K). The production function is given by \( Q = 2L^{0.5}K^{0.5} \). If the firm's techno\logy is such that the marginal product of labor is 0.5 and the marginal product of capital is 0.5, find the firm's optimal input mix.

A. L = 4, K = 4

B. L = 2, K = 8

C. L = 8, K = 2

D. L = 1, K = 16

Question 11

A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2. If the firm produces 50 units, calculate the firm's total \cost.

A. 1500

B. 1600

C. 1700

D. 1800

Question 12

A firm is operating in a perfectly competitive market. The firm's \cost function is given by ( C(Q) = 100 + 2Q ). If the market price is ₦50, find the firm's optimal output level.

A. Q = 20

B. Q = 30

C. Q = 40

D. Q = 50

Question 13

A consumer has a budget of 100 and the prices of two goods are 5 and 10 respectively. If the consumer's income elasticity of demand for the first good is 0.5, what is the percentage change in the quantity demanded of the first good when the consumer's income increases by 10%?

A. 5%

B. 10%

C. 15%

D. 20%

Question 14

The concept of comparative advantage is a fundamental principle in international trade that refers to the ability of a country to produce a good at a lower opportunity \cost than another country. Which of the following best describes the concept of comparative advantage?

A. The ability of a country to produce a good at a lower opportunity \cost than another country.

B. The ability of a country to produce a good at a higher opportunity \cost than another country.

C. The ability of a country to produce a good at the same opportunity \cost as another country.

D. The ability of a country to produce a good at a lower price than another country.

Question 15

The concept of scarcity in economics implies that the wants and needs of individuals are unlimited, while the resources available to satisfy these wants and needs are limited. Which of the following best describes the relationship between wants and needs?

A. Wants are unlimited, while needs are limited.

B. Wants and needs are both unlimited.

C. Wants are limited, while needs are unlimited.

D. Wants and needs are both limited.

POST UTME IMS U 2023 Economics | Objective

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