POST UTME KSU 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 5 units of output, what is the total \cost?
A. ₦75
B. ₦85
C. ₦95
D. ₦105
Question 2
A government imposes a tax of ₦50 per unit on a good that is sold at a price of ₦200 per unit. If the demand for the good is given by Q = 100 - 2P, what is the new equilibrium quantity?
A. 40
B. 50
C. 60
D. 70
Question 3
A government imposes a tax of ₦50 per unit on a good that is sold at a price of ₦200 per unit. If the demand for the good is given by Q = 100 - 2P, what is the new equilibrium price?
A. ₦225
B. ₦250
C. ₦275
D. ₦300
Question 4
A firm is considering two production methods: method A and method B. Method A \costs ₦1000 per unit and produces 1 unit of output, while method B \costs ₦500 per unit and produces 2 units of output. If the firm produces 3 units of output, what is the total \cost of production?
A. ₦3000
B. ₦3500
C. ₦4000
D. ₦4500
Question 5
A firm's total revenue is given by the equation R(x) = 2x^2 + 5x + 1, where x is the number of units sold. If the firm's marginal revenue is 10 when x = 5, what is the firm's total revenue when x = 10?
A. 101
B. 121
C. 141
D. 161
Question 6
The National Bureau of Statistics (NBS) releases a report on the Gross Domestic Product (GDP) of Nigeria. The report states that the GDP at factor \cost is ₦10 trillion, while the GDP at market price is ₦12 trillion. What is the value of the indirect taxes?
A. ₦2 trillion
B. ₦1.5 trillion
C. ₦1 trillion
D. ₦0.5 trillion
Question 7
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 10 units of output, what is the total \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 8
A government's budget constraint is given by B = T + I. If the government's tax revenue is ₦500 billion and its interest payment is ₦200 billion, what is the budget deficit?
A. ₦300 billion
B. ₦400 billion
C. ₦500 billion
D. ₦600 billion
Question 9
The money multiplier is a concept used in the money market to determine the change in the money supply resulting from a change in the money multiplier. If the money multiplier is 4 and the initial money supply is ₦10 billion, what is the new money supply if the money multiplier increases to 5?
A. ₦20 billion
B. ₦15 billion
C. ₦12.5 billion
D. ₦10 billion
Question 10
The government of Nigeria introduces a new tax policy to increase revenue. The policy includes a 10% increase in the value-added tax (VAT) rate. If the current VAT rate is 5%, what is the new VAT rate?
A. 5%
B. 6%
C. 7%
D. 8%
Question 11
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue function MR = 20 - 2Q. If the firm produces 20 units, what is the total revenue?
A. ₦2000
B. ₦2500
C. ₦3000
D. ₦3500
Question 12
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 13
A company is considering investing in a new project. The project has a fixed \cost of ₦1 million and a variable \cost of ₦500 per unit produced. If the selling price of the product is ₦1,500 per unit, and the company expects to sell 10,000 units, what is the company's profit?
A. ₦4,500,000
B. ₦5,500,000
C. ₦6,500,000
D. ₦7,500,000
Question 14
The balance of payments (BOP) is a statistical statement that summarizes a country's economic transactions with the rest of the world over a specific period of time. If a country's current account deficit is ₦100 billion and its capital account surplus is ₦50 billion, what is the country's overall balance of payments deficit?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 15
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%

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