POST UTME UI 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering the introduction of a new product. The demand for the product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. What is the price elasticity of demand for the product?
A. 0.5
B. 1
C. 2
D. -1
Question 2
The National Bureau of Statistics (NBS) reports that the GDP of Nigeria has increased by 3% in the past year. What is the implication of this growth rate on the s\tandard of living of the average Nigerian?
A. The s\tandard of living will increase.
B. The s\tandard of living will remain unchanged.
C. The s\tandard of living will decrease.
D. The s\tandard of living will be unaffected.
Question 3
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market price is P = 10, and the marginal \cost (MC) of each firm is 5, what is the profit-maximizing quantity \( Q* \) for each firm?
A. \( Q^* = \frac{P - MC}{2} \)
B. \( Q^* = \frac{P + MC}{2} \)
C. \( Q^* = \frac{P - 2MC}{2} \)
D. \( Q^* = \frac{P + 2MC}{2} \)
Question 4
A firm's \cost function is given by C(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's revenue function is R(x) = 4x^2 + 5x + 1, find the break-even point.
A. x = 1
B. x = 2
C. x = 3
D. x = 4
Question 5
A consumer's budget constraint is given by P1Q1 + P2Q2 = I. If the consumer's income is ₦100 and the prices of the two goods are ₦10 and ₦20 respectively, what is the value of the consumer's optimal bundle?
A. Q1 = 2, Q2 = 3
B. Q1 = 3, Q2 = 2
C. Q1 = 4, Q2 = 1
D. Q1 = 1, Q2 = 4
Question 6
The government of Nigeria is considering a tax reform to increase revenue. If the government imposes a tax rate of 20% on all goods and services, and the average price of goods and services is ₦100, what is the expected increase in revenue?
A. ₦10 million
B. ₦20 million
C. ₦30 million
D. ₦40 million
Question 7
A firm's revenue function is given by R = 2x^2 + 3x, where x is the quantity of the good sold. If the firm sells 5 units of the good, what is the firm's total revenue?
A. 25
B. 30
C. 35
D. 40
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 4 and 9 respectively, what is the value of its output?
A. 16
B. 32
C. 64
D. 128
Question 9
A firm's \cost function is given by C = 2L + 3K, where L is labor and K is capital. If the firm's current labor and capital inputs are 10 and 5 respectively, what is the firm's total \cost?
A. 25
B. 30
C. 35
D. 40
Question 10
A consumer's utility function is given by U(x,y) = 2x + 3y. If the prices of x and y are $2 and $3, respectively, and the consumer has a budget of $15, what is the optimal bundle of x and y?
A. \( x = 3, y = 2 \)
B. \( x = 2, y = 3 \)
C. \( x = 4, y = 1 \)
D. \( x = 1, y = 4 \)
Question 11
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are ₦5 and ₦3 respectively, and the consumer has a budget of ₦20, find the optimal consumption bundle.
A. (4,4)
B. (6,2)
C. (8,0)
D. (0,6)
Question 12
A firm has a production function F(L,K) = 2L + 3K. If the prices of labor and capital are ₦10 and ₦20 respectively, and the firm has a budget of ₦100, find the optimal input combination.
A. (5,5)
B. (10,2)
C. (15,1)
D. (20,0)
Question 13
A firm's demand function is given by D(p) = 100 - 2p, where p is the price of the good. If the firm's \cost function is C(x) = 2x^2 + 5x + 1, find the price that maximizes profit.
A. p = 20
B. p = 30
C. p = 40
D. p = 50
Question 14
A firm's \cost function is given by C(L,K) = 2L^2 + 3K. If the firm has 10 units of labor and 5 units of capital, what is the total \cost?
A. \( C = 50 \)
B. \( C = 60 \)
C. \( C = 70 \)
D. \( C = 80 \)
Question 15
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. If the CBN buys government securities worth ₦1 billion from commercial banks, what is the likely effect on the money supply?
A. The money supply decreases
B. The money supply increases
C. The money supply remains unchanged
D. The money supply decreases in the short run but increases in the long run

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