POST UTME UI 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand curve is given by the equation Q = 100 - 2P. If the firm's production \cost is 50, what is the firm's profit-maximizing price?
A. 20
B. 30
C. 40
D. 50
Question 2
A country's GNP is $150 billion, its GDP is $120 billion, and its net factor income from abroad is $10 billion. What is the country's national income?
A. $160 billion
B. $170 billion
C. $180 billion
D. $190 billion
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it is currently producing 100 units of output, what is the firm's current marginal \cost of production?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 4
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is the total revenue?
A. ₦1,800
B. ₦2,000
C. ₦2,200
D. ₦2,400
Question 5
A firm is producing a good with a total revenue of ₦120,000 and a total \cost of ₦100,000. What is the profit of the firm?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 6
A consumer has the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal bundle of x and y?
A. (2,2)
B. (3,1)
C. (4,0)
D. (0,4)
Question 7
A country's GDP is $100 billion, and its GNP is $120 billion. What is the country's net factor income from abroad?
A. $20 billion
B. $30 billion
C. $40 billion
D. $50 billion
Question 8
A firm's demand function is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm wants to sell 50 units, what price should it charge?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's current price is $50, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 10
A country's inflation rate is given by the following equation:\n\n\( pi = 2 + 0.5y \), where ( y ) is the growth rate of the money supply.\n\nIf the inflation rate is 10%, find the growth rate of the money supply.
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has been criticized for being inefficient and wasteful. What is the opportunity \cost of this policy?
A. The opportunity \cost is the value of the next best alternative use of the resources.
B. The opportunity \cost is the value of the resources that could have been used for other purposes.
C. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being used for agricultural production.
D. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being wasted due to inefficiency.
Question 12
A firm is producing a good with a total revenue of ₦100,000 and a total \cost of ₦80,000. What is the profit of the firm?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 13
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it is currently producing 100 units of output, what is the firm's current total \cost of production?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
Question 14
A country's GDP is $100 billion, and its GNP is $120 billion. What is the country's net factor income from abroad?
A. $20 billion
B. $30 billion
C. $40 billion
D. $50 billion
Question 15
A country's balance of payments account is given by the following table:\n\n| Category | Debit | Credit |\n| --- | --- | --- |\n| Current Account | 100 | 150 |\n| Capital Account | 50 | 20 |\n| Financial Account | 200 | 300 |\n| Errors and Omissions | 10 | 5 |\n\nFind the country's net foreign exchange earnings.
A. ₦150
B. ₦200
C. ₦250
D. ₦300

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