POST UTME UI 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a budget of ₦1,000,000 and a preference for two goods, A and B. The prices of the goods are ₦500,000 and ₦300,000, respectively. If the consumer sp\ends all of their budget, how much of good A will they buy?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 2
A consumer has the following indifference curve: U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the goods are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal quantity of good x?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 3
A firm is considering two different production techno\logies: a traditional techno\logy with a production function Q = 2L^0.5K^0.5 and a modern techno\logy with a production function Q = 3L^0.7K^0.3. If the firm's current input prices are w = ₦100 and r = ₦200, and it is currently producing 100 units of output, which techno\logy should the firm adopt to maximize its economic profit?
A. Traditional techno\logy
B. Modern techno\logy
C. Either techno\logy is equally profitable
D. Neither techno\logy is profitable
Question 4
A consumer has a budget of ₦500 to sp\end on two goods, X and Y. The price of good X is ₦100 and the price of good Y is ₦200. The consumer's indifference curves are given by the equation U = 2X^0.5Y^0.5, where U is the level of utility. If the consumer is currently consuming 2 units of good X and 1 unit of good Y, what is the maximum amount of good Y the consumer can buy?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 5
A government imposes a tax of ₦10 per unit on a good. The demand function for the good is given by Q = 100 - 2P. Find the new equilibrium price and quantity.
A. P = 20, Q = 40
B. P = 30, Q = 50
C. P = 40, Q = 60
D. P = 50, Q = 70
Question 6
A firm is considering two different investment projects: Project A with a 10% probability of success and a 20% return on investment, and Project B with a 20% probability of success and a 10% return on investment. Which project should the firm adopt to maximize its expected return on investment?
A. Project A
B. Project B
C. Either project is equally profitable
D. Neither project is profitable
Question 7
A firm's \cost function is given by the equation C(x) = 2x^2 + 10x, where x is the number of units produced. If the firm produces 5 units, what is the total \cost?
A. $50
B. $100
C. $150
D. $200
Question 8
A country's GDP is ₦1,000,000,000,000. Its GNP is ₦1,100,000,000,000. What is the net factor income from abroad?
A. ₦100,000,000,000
B. ₦200,000,000,000
C. ₦300,000,000,000
D. ₦400,000,000,000
Question 9
A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the goods are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal quantity of good x?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 10
Determine the value of x in the equation \( \log_{10} \( x^2 \ \) = 4 ).
A. 10
B. 100
C. 1000
D. 10000
Question 11
A firm is operating in a perfectly competitive market. If the market price of its product is $10, and the firm's marginal \cost is $8, what is the firm's profit-maximizing quantity?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 12
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦500,000,000,000 and the value of imports is ₦600,000,000,000, what is the balance of payments?
A. ₦-100,000,000,000
B. ₦0
C. ₦100,000,000,000
D. ₦200,000,000,000
Question 13
A country's balance of payments account is in equilibrium when the current account is equal to the capital account. If the country's current account is in deficit by ₦100 billion and the capital account is in surplus by ₦50 billion, what is the net effect on the country's balance of payments?
A. ₦50 billion surplus
B. ₦50 billion deficit
C. ₦100 billion surplus
D. ₦100 billion deficit
Question 14
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and it is currently producing 100 units of output, what is the firm's current economic profit?
A. ₦5,000
B. ₦10,000
C. ₦20,000
D. ₦50,000
Question 15
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal price?
A. 20
B. 25
C. 30
D. 35

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