POST UTME NOUN 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good with a production function given by Q = 2L^0.5K^0.5. If the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, what is the \cost-minimizing combination of labor and capital?
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 30, K = 15
D. L = 15, K = 30
Question 2
A perfectly competitive firm produces a good with a cons\tant marginal \cost of ₦10 per unit. If the market price is ₦20 per unit, what is the profit-maximizing quantity of the good?
A. 10
B. 20
C. 30
D. 40
Question 3
A farmer in Nigeria produces maize and soybeans. If the price of maize increases by 20% and the price of soybeans remains cons\tant, what happens to the farmer's budget constraint?
A. The budget constraint shifts to the right
B. The budget constraint shifts to the left
C. The budget constraint remains the same
D. The budget constraint becomes vertical
Question 4
A firm has a total revenue function of \( TR = 100x - 2x^2 \) and a total \cost function of \( TC = 50 + 10x + 2x^2 \). What is the profit-maximizing level of output?
A. 10
B. 20
C. 30
D. 40
Question 5
A firm is considering investing in a new project with a net present value (NPV) of $100,000. If the \cost of capital is 10%, what is the firm's expected rate of return?
A. 10%
B. 12%
C. 15%
D. 18%
Question 6
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is $100 and the prices of x and y are $5 and $10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 5
Question 7
Determine the returns to scale for a firm with a production function Q = 2x^0.5y^0.5.
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale
Question 8
A firm's marginal revenue (MR) and marginal \cost (MC) curves are given by the equations MR = 100 - 2x and MC = 50 + x. At what level of output will the firm maximize its profit?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 9
A country has a trade deficit of $100 million and a current account deficit of $50 million. What is the likely effect on the exchange rate?
A. Appreciation
B. Depreciation
C. No change
D. Indeterminate
Question 10
A government in Nigeria wants to promote industrialization. Which of the following policies would be most effective in achieving this goal?
A. Increa\sing the minimum wage
B. Reducing the corporate tax rate
C. Investing in infrastructure
D. Implementing a value-added tax
Question 11
A firm is experiencing a shortage of labor due to a strike. The firm's production function is given by Q = 100L, where L is the number of labor hours. If the firm is currently producing 500 units of output, what is the opportunity \cost of hiring one more labor hour?
A. $10
B. $20
C. $30
D. $40
Question 12
A firm in Nigeria produces a good with a cons\tant elasticity of demand. If the price of the good increases by 10%, what happens to the quantity demanded?
A. Quantity demanded increases by 10%
B. Quantity demanded decreases by 10%
C. Quantity demanded remains the same
D. Quantity demanded increases by 20%
Question 13
A firm is considering two investment projects. Project A has a net present value (NPV) of $100,000 and a required rate of return of 10%. Project B has an NPV of $150,000 and a required rate of return of 12%. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 14
A country's GDP is ₦1,500 billion, its imports are ₦300 billion, and its exports are ₦400 billion. What is its balance of trade?
A. ₦100 billion surplus
B. ₦200 billion deficit
C. ₦300 billion deficit
D. ₦400 billion surplus
Question 15
A country's GDP is $100 billion, its government exp\enditure is $20 billion, and its private consumption is $60 billion. What is the country's savings rate?
A. 10%
B. 20%
C. 30%
D. 40%

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: