POST UTME OAU 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Qd = 100 - 2P + 3Y, where Qd is the quantity demanded, P is the price, and Y is the income. If the price elasticity of demand is -2, what is the income elasticity of demand?
A. -1
B. 1
C. 2
D. 3
Question 2
A country's GDP is given by GDP = 100 + 20Y - 5Y^2, where Y is the country's income. If the country's GNP is given by GNP = 120 + 30Y - 10Y^2, what is the country's GDP-GNP gap?
A. ( 20 )
B. ( 30 )
C. ( 40 )
D. ( 50 )
Question 3
A firm's revenue function is given by R(q) = 200q - 2q^2. If the firm's marginal \cost is MC = 10, find the profit-maximizing output level.
A. 10
B. 15
C. 20
D. 25
Question 4
A firm is considering two different production processes to produce a certain good. Process A requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit. Process B requires an initial investment of ₦150,000 and has a variable \cost of ₦30 per unit. If the firm produces 10,000 units of the good, what is the elasticity of demand for each process?
A. Inelastic for Process A and Elastic for Process B
B. Elastic for Process A and Inelastic for Process B
C. Unit elastic for Process A and Unit elastic for Process B
D. None of the above
Question 5
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 for potentially harming the environment. Which of the following is a potential benefit of the policy?
A. Increased rice production
B. Improved food security
C. Reduced poverty
D. Increased government revenue
Question 6
A monopolist faces a market demand curve given by Qd = 100 - 2P and has a marginal \cost (MC) of 10. If the firm's marginal revenue (MR) is given by MR = 20 - 2P, what is the firm's profit-maximizing quantity and price?
A. \( Q = 20, P = 40 \)
B. \( Q = 30, P = 30 \)
C. \( Q = 40, P = 20 \)
D. \( Q = 50, P = 10 \)
Question 7
A perfectly competitive firm produces a good with a production function given by Q = 2L^0.5, where Q is the quantity produced and L is the labor input. If the firm's revenue function is given by R = 10Q, what is the marginal revenue product of labor?
A. 5
B. 10
C. 20
D. 30
Question 8
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the consumer's optimal bundle.
A. x = 50, y = 100
B. x = 100, y = 50
C. x = 150, y = 0
D. x = 0, y = 150
Question 9
Consider a firm operating in a perfectly competitive market with a demand curve given by P = 100 - Q. If the firm's marginal \cost is MC = 10, find the profit-maximizing output level.
A. 10
B. 15
C. 20
D. 25
Question 10
A firm has a production function given by Q = 2L^2, where Q is the quantity produced and L is the labor input. If the wage rate is 10, what is the optimal level of labor?
A. 5
B. 10
C. 15
D. 20
Question 11
A firm is a pure monopolist with a demand function given by Q = 100 - 2P. If the firm's marginal \cost is 10, find the firm's optimal price and quantity.
A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20
Question 12
Agricultural production in Nigeria is characterized by a high degree of seasonality. Which of the following is a consequence of this seasonality?
A. Increased food prices
B. Decreased food prices
C. Increased agricultural production
D. Decreased agricultural production
Question 13
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 type of economic policy is this?
A. Supply-side policy
B. Demand-side policy
C. Fiscal policy
D. Monetary policy
Question 14
A monopolist faces a demand curve given by P = 100 - Q. The firm's marginal \cost is given by MC = 10 + 2Q. What is the profit-maximizing quantity produced?
A. 20
B. 30
C. 40
D. 50
Question 15
Consider a country that imports 60% of its coffee and exports 70% of its cocoa. If the country's coffee imports increase by 15% and cocoa exports decrease by 10%, what is the new balance of trade?
A. Coffee imports increase by 15%, cocoa exports decrease by 10%
B. Coffee imports decrease by 15%, cocoa exports increase by 10%
C. Coffee imports increase by 15%, cocoa exports increase by 10%
D. Coffee imports decrease by 15%, cocoa exports decrease by 10%

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