POST UTME UI 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal \cost
B. marginal revenue
C. average \cost
D. average revenue
Question 2
A government budget is said to be in surplus when its total revenue exceeds its total exp\enditure. If the government increases its tax rate, what will happen to its budget balance?
A. Increase in budget surplus
B. Decrease in budget deficit
C. No change in budget balance
D. Uncertain effect on budget balance
Question 3
A country's economic growth rate is measured by the rate of change of its real GDP. If the country's real GDP grows at a rate of 4% per annum, what will be the rate of change of its nominal GDP?
A. 4%
B. 8%
C. 12%
D. 16%
Question 4
A firm's \cost function is given by ( C(x) = 2x^2 + 5x + 3 ). Find the marginal \cost function.
A. ( C'(x) = 4x + 5 \)
B. ( C'(x) = 2x + 3 \)
C. ( C'(x) = x^2 + 5 \)
D. ( C'(x) = 2x^2 + 5 \)
Question 5
A firm is considering investing in a new project with the following cash flows: Year 1: ₦100 million, Year 2: ₦120 million, Year 3: ₦150 million. What is the present value of the project u\sing a discount rate of 10%?
A. ₦200 million
B. ₦250 million
C. ₦300 million
D. ₦350 million
Question 6
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. What is the marginal revenue when x = 10?
A. $80
B. $90
C. $100
D. $110
Question 7
A firm is producing a good with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm increases labor from 100 units to 120 units and capital from 100 units to 120 units, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 8
A firm's \cost function is given by ( C(q) = 10q + 20 ). If the firm produces 5 units of output, what will be its total \cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 9
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left, and the new supply curve is given by the equation S = 100 - 2x. What is the price elasticity of supply at x = 20?
A. 0.5
B. 1
C. 2
D. 3
Question 10
A firm is producing a product with a demand function Q = 100 - 2P. If the firm wants to maximize its profit, what is the optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 11
A monopolistically competitive firm faces a downward-sloping demand curve due to product differentiation. If the firm increases its price, what will happen to its revenue?
A. Increase in revenue
B. Decrease in revenue
C. No change in revenue
D. Uncertain effect on revenue
Question 12
Consider a consumer with the following utility function: U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the optimal bundle of x and y?
A. x = 100, y = 100
B. x = 150, y = 50
C. x = 200, y = 0
D. x = 0, y = 100
Question 13
A government is considering implementing a new tax policy to reduce income inequality. The policy involves increa\sing the tax rate on high-income earners and reducing the tax rate on low-income earners. What is the likely effect of this policy on the government's revenue?
A. Increase in revenue
B. Decrease in revenue
C. No change in revenue
D. Uncertain effect on revenue
Question 14
A firm's elasticity of demand is measured by the percentage change in quantity demanded
A. in response to a 1% change in price
B. in response to a 1% change in income
C. in response to a 1% change in price and income
D. in response to a 1% change in price and income, with the percentage change in quantity demanded being equal to the percentage change in price
Question 15
A country's balance of payments (BOP) accounts can be classified into three main categories: current account, capital account, and financial account. Which of the following is NOT a component of the current account?
A. Exports
B. Imports
C. Foreign Direct Investment (FDI)
D. Remit\tances

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