POST UTME NOUN 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The Nigerian government has implemented a policy to increase the production of a particular good. The policy has led to an increase in the price of the good, which has resulted in a decrease in the quantity demanded. U\sing the concept of supply and demand, explain why the government's policy has led to a decrease in the quantity demanded.
A. The government's policy has led to a decrease in the quantity demanded because the supply curve has shifted to the right, resulting in a decrease in the quantity demanded.
B. The government's policy has led to a decrease in the quantity demanded because the demand curve has shifted to the left, resulting in a decrease in the quantity demanded.
C. The government's policy has led to a decrease in the quantity demanded because the supply curve has shifted to the left, resulting in a decrease in the quantity demanded.
D. The government's policy has led to a decrease in the quantity demanded because the demand curve has shifted to the right, resulting in a decrease in the quantity demanded.
Question 2
The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has led to an increase in the price of agricultural inputs, which has resulted in a decrease in the quantity of agricultural output. U\sing the concept of opportunity \cost, explain why the government's policy has led to a decrease in agricultural output.
A. The government's policy has led to a decrease in the quantity of agricultural output because the opportunity \cost of producing more agricultural output is higher than the benefit of producing more.
B. The government's policy has led to a decrease in the quantity of agricultural output because the opportunity \cost of producing more agricultural output is lower than the benefit of producing more.
C. The government's policy has led to a decrease in the quantity of agricultural output because the opportunity \cost of producing more agricultural output is equal to the benefit of producing more.
D. The government's policy has led to a decrease in the quantity of agricultural output because the opportunity \cost of producing more agricultural output is not relevant to the decision-making process.
Question 3
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions for X and Y are given by the following equations:
A. X = 2L + 3K, Y = 4L + 2K
B. X = 3L + 2K, Y = 2L + 4K
C. X = 2L + 4K, Y = 3L + 2K
D. X = 4L + 2K, Y = 3L + 4K
Question 4
The Nigerian government has implemented a policy to increase the production of a particular good. The policy has led to an increase in the price of the good, which has resulted in a decrease in the quantity demanded. U\sing the concept of opportunity \cost, explain why the government's policy has led to a decrease in the quantity demanded.
A. The government's policy has led to a decrease in the quantity demanded because the opportunity \cost of producing more of the good is higher than the benefit of producing more.
B. The government's policy has led to a decrease in the quantity demanded because the opportunity \cost of producing more of the good is lower than the benefit of producing more.
C. The government's policy has led to a decrease in the quantity demanded because the opportunity \cost of producing more of the good is equal to the benefit of producing more.
D. The government's policy has led to a decrease in the quantity demanded because the opportunity \cost of producing more of the good is not relevant to the decision-making process.
Question 5
A country is experiencing a 10% increase in imports. If the country is operating on the balance of payments equilibrium, what will be the effect on the balance of payments?
A. The balance of payments will shift to the left.
B. The balance of payments will shift to the right.
C. The balance of payments will remain unchanged.
D. The balance of payments will shift downwards.
Question 6
A firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10 + 2Q, what is the profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 7
The Nigerian government has implemented a policy to increase the production of a particular good. The policy has led to an increase in the price of the good, which has resulted in a decrease in the quantity demanded. U\sing the concept of supply and demand, explain why the government's policy has led to a decrease in the quantity demanded.
A. The government's policy has led to a decrease in the quantity demanded because the supply curve has shifted to the right, resulting in a decrease in the quantity demanded.
B. The government's policy has led to a decrease in the quantity demanded because the demand curve has shifted to the left, resulting in a decrease in the quantity demanded.
C. The government's policy has led to a decrease in the quantity demanded because the supply curve has shifted to the left, resulting in a decrease in the quantity demanded.
D. The government's policy has led to a decrease in the quantity demanded because the demand curve has shifted to the right, resulting in a decrease in the quantity demanded.
Question 8
A firm's production function is given by \( Q = 2L + 3K \). If the firm wants to produce 100 units, and the wage rate is ₦10 per hour, find the optimal level of capital.
A. ₦30
B. ₦40
C. ₦50
D. ₦60
Question 9
The demand for a commodity is given by the equation \( Q_d = 100 - 2P \), where \( Q_d \) 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%
Question 10
The following diagram shows the supply and demand curves for a commodity. If the price elasticity of supply is 2 and the price elasticity of demand is 3, what is the equilibrium price and quantity?
A. Price: ₦100, Quantity: 100
B. Price: ₦150, Quantity: 150
C. Price: ₦200, Quantity: 200
D. Price: ₦250, Quantity: 250
Question 11
A firm's revenue function is given by R(x) = 2x^2 + 12x + 5, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 12, find the value of x that maximizes revenue.
A. 2
B. 3
C. 4
D. 5
Question 12
A firm's demand function is given by \( Q = 100 - 2P \). If the price elasticity of demand is 0.5, find the price at which the firm will sell 50 units.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
A country is experiencing a 10% increase in exports. If the country is operating on the balance of payments equilibrium, what will be the effect on the balance of payments?
A. The balance of payments will shift to the left.
B. The balance of payments will shift to the right.
C. The balance of payments will remain unchanged.
D. The balance of payments will shift downwards.
Question 14
A country is experiencing a 10% increase in imports. If the country is operating on the balance of payments equilibrium, what will be the effect on the balance of payments?
A. The balance of payments will shift to the left.
B. The balance of payments will shift to the right.
C. The balance of payments will remain unchanged.
D. The balance of payments will shift downwards.
Question 15
The following table shows the production possibilities frontier for a country. If the country is currently producing 100 units of good X and 50 units of good Y, what is the opportunity \cost of producing one more unit of good X?
A. 5 units of good Y
B. 10 units of good Y
C. 15 units of good Y
D. 20 units of good Y

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: