POST UTME UI 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country has a trade deficit of $100 million and a GDP of $500 billion. If the country's exchange rate is 1 USD = 100 Naira, what is the percentage change in the value of the Naira?
A. 0.02%
B. 0.05%
C. 0.1%
D. 0.2%
Question 2
U\sing the Marshall-Lerner condition, determine whether Nigeria's balance of payments will improve if the country's export price increases by 10% and import price decreases by 5%.
A. The balance of payments will improve.
B. The balance of payments will worsen.
C. The balance of payments will remain unchanged.
D. Insufficient information to determine the outcome.
Question 3
A country's balance of payments (BOP) account is in deficit, with a trade deficit of ₦100 billion and a capital account surplus of ₦50 billion. U\sing the BOP identity, calculate the current account deficit.
A. ₦50 billion
B. ₦75 billion
C. ₦100 billion
D. ₦125 billion
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is given by MC = 10 + 2Q. What is the monopolist'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 5
A country's GDP at market price is ₦1 trillion, and its GDP at factor \cost is ₦900 billion. U\sing the GDP identity, calculate the net factor income from abroad.
A. ₦100 billion
B. ₦150 billion
C. ₦200 billion
D. ₦250 billion
Question 6
A firm is considering investing in a new project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦70,000, Year 3: ₦30,000. U\sing the net present value (NPV) method, calculate the minimum required rate of return (MRR) for the project.
A. 10%
B. 12%
C. 15%
D. 18%
Question 7
A consumer has a budget of ₦1000 and faces the following prices: x = ₦5, y = ₦3. The consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). What is the consumer's optimal bundle?
A. x = 60, y = 40
B. x = 40, y = 60
C. x = 50, y = 50
D. x = 70, y = 30
Question 8
A country's agricultural sector contributes 20% to its GDP, while its industrial sector contributes 30%. What is the contribution of the service sector to the country's GDP?
A. 20%
B. 30%
C. 40%
D. 50%
Question 9
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 16 and 9 respectively, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 10
A central bank can use monetary policy to stabilize the economy. Which of the following is a tool of monetary policy?
A. Fiscal policy
B. Monetary policy
C. Supply-side policy
D. Demand-side policy
Question 11
The GDP of a country is ₦100 billion, the GNP is ₦120 billion, and the net factor income from abroad is ₦10 billion. What is the country's net domestic product?
A. ₦90 billion
B. ₦110 billion
C. ₦100 billion
D. ₦120 billion
Question 12
A firm's revenue function is given by R = 2x + 3y, where R is revenue, x and y are the quantities of two goods sold. If the firm's current prices are 2 and 3 respectively, what is the firm's total revenue?
A. 10
B. 15
C. 20
D. 25
Question 13
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. P = 50, Q = 25
B. P = 75, Q = 25
C. P = 50, Q = 50
D. P = 75, Q = 50
Question 14
A firm operating in a perfectly competitive market is said to be in a state of equilibrium when the marginal revenue product of labor equals the marginal factor \cost of labor. What is the opportunity \cost of hiring an additional worker in this scenario?
A. The wage rate of the additional worker
B. The marginal revenue product of the additional worker
C. The marginal factor \cost of the additional worker
D. The opportunity \cost of hiring an additional worker
Question 15
A country is experiencing a recession, and the government is considering implementing a fiscal policy to stimulate economic growth. The government has two options: Option A, which involves increa\sing government sp\ending by ₦10 billion, or Option B, which involves reducing taxes by ₦5 billion. Which option is more likely to stimulate economic growth?
A. Option A is more likely to stimulate economic growth.
B. Option B is more likely to stimulate economic growth.
C. Both options are equally likely to stimulate economic growth.
D. Neither option is likely to stimulate economic growth.

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