POST UTME LASU 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good with a decrea\sing returns to scale production function. If the price of the good increases by 20%, what will be the effect on the firm's output?
A. The firm's output will increase by 20%.
B. The firm's output will decrease by 20%.
C. The firm's output will remain unchanged.
D. The firm's output will increase by 10%.
Question 2
A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are ₦10 and ₦20 respectively, and the consumer has a budget of ₦100, find the optimal quantities of x and y that will maximize the consumer's utility.
A. x = 5, y = 2
B. x = 2, y = 5
C. x = 10, y = 5
D. x = 5, y = 10
Question 3
The Central Bank of Nigeria has increased the reserve requirement for commercial banks from 10% to 15%. What is the effect of this policy on the money supply?
A. Increase in money supply
B. Decrease in money supply
C. No change in money supply
D. Uncertainty in money supply
Question 4
The government of Nigeria has introduced a new policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the availability of fertilizers. However, the policy has been criticized for being too expensive and not addres\sing the root causes of the problem. What is the main economic concept underlying this policy?
A. Supply-side economics
B. Demand-side economics
C. Market failure
D. Government intervention
Question 5
A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are ₦10 and ₦20 respectively, and the consumer has a budget of ₦100, find the optimal quantities of x and y that will maximize the consumer's utility.
A. x = 5, y = 2
B. x = 2, y = 5
C. x = 10, y = 5
D. x = 5, y = 10
Question 6
The demand for a good is inversely related to its price. This is an example of which economic concept?
A. Law of Demand
B. Law of Supply
C. Law of Diminishing Marginal Utility
D. Law of Increa\sing Marginal Utility
Question 7
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where Q_X is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. The production function for good Y is given by Q_Y = 3L^0.7K^0.3. If the firm uses 100 units of labor and 200 units of capital, how many units of good X and good Y will be produced?
A. Q_X = 50, Q_Y = 100
B. Q_X = 100, Q_Y = 50
C. Q_X = 200, Q_Y = 150
D. Q_X = 150, Q_Y = 200
Question 8
A central bank is considering a monetary policy to reduce inflation. If the central bank increases the interest rate, what will be the effect on the money supply?
A. The money supply will increase.
B. The money supply will decrease.
C. The money supply will remain unchanged.
D. The money supply will increase at a decrea\sing rate.
Question 9
A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. This is an example of which economic concept?
A. Trade Deficit
B. Trade Surplus
C. Balance of Payments Equilibrium
D. Current Account Deficit
Question 10
A firm is producing a good with a cons\tant returns to scale production function. If the price of the good decreases by 20%, what will be the effect on the firm's output?
A. The firm's output will increase by 20%.
B. The firm's output will decrease by 20%.
C. The firm's output will remain unchanged.
D. The firm's output will increase by 10%.
Question 11
The government of Nigeria has introduced a new policy aimed at increa\sing agricultural production. The policy includes a subsidy on fertilizers and a loan scheme for farmers. What is the effect of this policy on the supply curve of agricultural products?
A. Shift to the left
B. Shift to the right
C. No change
D. Uncertainty
Question 12
A country's inflation rate is 5% per annum, and its nominal interest rate is 8% per annum. If the real interest rate is 3% per annum, what is the expected rate of return on a 3-year bond?
A. \( 1.03^3 \)
B. \( 1.05^3 \)
C. \( 1.08^3 \)
D. \( 1.03 \times 1.08 \)
Question 13
A monopolistic firm in Nigeria produces a product with a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price and quantity of the product?
A. P = ₦20, Q = 40
B. P = ₦30, Q = 50
C. P = ₦40, Q = 60
D. P = ₦50, Q = 70
Question 14
A central bank is considering a monetary policy to reduce inflation. If the central bank decreases the reserve requirement for commercial banks, what will be the effect on the money supply?
A. The money supply will increase.
B. The money supply will decrease.
C. The money supply will remain unchanged.
D. The money supply will increase at a decrea\sing rate.
Question 15
A government is considering a tax on a particular good. If the tax is implemented, what will be the effect on the supply of the good?
A. The supply of the good will increase.
B. The supply of the good will decrease.
C. The supply of the good will remain unchanged.
D. The supply of the good will increase at a decrea\sing rate.

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