POST UTME UI 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total revenue (TR) is given by TR = 2Q^2 + 10Q. If the firm's marginal \cost (MC) is given by MC = Q + 5, what is the firm's optimal quantity?
A. 10
B. 20
C. 30
D. 40
Question 2
A country's government imposes a tariff on imports of a particular good. If the pre-tariff price of the good is ₦100 and the tariff rate is 20%, what is the new price of the good after the tariff is imposed?
A. ₦80
B. ₦120
C. ₦100
D. ₦80
Question 3
Agricultural development in Nigeria has been hindered by the lack of access to credit facilities for farmers. Discuss the impact of this on the agricultural sector and suggest possible solutions.
A. The lack of access to credit facilities for farmers has led to a decrease in agricultural production, resulting in food shortages and increased prices.
B. The lack of access to credit facilities for farmers has led to an increase in agricultural production, resulting in a surplus of food and decreased prices.
C. The lack of access to credit facilities for farmers has had no impact on agricultural production.
D. The lack of access to credit facilities for farmers has led to an increase in agricultural production, but at the \cost of environmental degradation.
Question 4
The concept of opportunity \cost is closely related to the law of diminishing marginal utility. Explain how the law of diminishing marginal utility leads to opportunity \cost.
A. The law of diminishing marginal utility leads to opportunity \cost because as more units of a good are consumed, the marginal utility of each additional unit decreases, leading to a decrease in total utility.
B. The law of diminishing marginal utility leads to opportunity \cost because as more units of a good are consumed, the marginal utility of each additional unit increases, leading to an increase in total utility.
C. The law of diminishing marginal utility leads to opportunity \cost because as more units of a good are consumed, the marginal utility of each additional unit remains cons\tant, leading to a cons\tant total utility.
D. The law of diminishing marginal utility leads to opportunity \cost because as more units of a good are consumed, the marginal utility of each additional unit decreases, leading to an increase in opportunity \cost.
Question 5
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. Suppose the exchange rate of Nigeria's currency, the Naira, appreciates by 10% against the US dollar. If the price of Nigeria's exports increases by 15% and the price of its imports increases by 8%, will Nigeria's balance of payments improve?
A. Yes
B. No
C. Maybe
D. Insufficient information
Question 6
A farmer in Nigeria is considering whether to produce maize or yams. The market price of maize is ₦150 per bag, and the market price of yams is ₦200 per bag. If the farmer's opportunity \cost of producing maize is ₦120 per bag, and the opportunity \cost of producing yams is ₦180 per bag, which crop should the farmer produce?
A. Maize
B. Yams
C. Both
D. Neither
Question 7
A government imposes a tax on a firm's output. The firm's supply curve shifts to the
A. left
B. right
C. upward
D. downward
Question 8
A central bank uses the following monetary policy tools to control inflation: open market operations, reserve requirements, and discount rate. Which of the following is NOT a direct effect of an increase in the discount rate?
A. Increase in money supply
B. Decrease in interest rate
C. Increase in reserve requirement
D. Decrease in money supply
Question 9
A firm produces two goods, A and B. The production function for good A is given by Q_A = 10L^0.5K^0.5, where L is labor and K is capital. The production function for good B is given by Q_B = 5L^0.2K^0.8. If the firm has 100 units of labor and 200 units of capital, what is the total output of the firm?
A. 1000
B. 1200
C. 1500
D. 1800
Question 10
The Gross Domestic Product (GDP) of a country is $100 billion. If the country's population is 50 million, what is the per capita income?
A. $2000
B. $5000
C. $10,000
D. $20,000
Question 11
A monopolistically competitive firm is operating in a market with a large number of firms. If the firm increases its price, what is the likely effect on its demand?
A. Increase in demand
B. Decrease in demand
C. No impact on demand
D. Increase in supply
Question 12
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price. Find the equilibrium price and quantity.
A. P = 50, Q = 150
B. P = 75, Q = 100
C. P = 25, Q = 200
D. P = 100, Q = 50
Question 13
A firm is producing a product with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. The firm has 100 units of labor and 200 units of capital. What is the marginal product of labor (MPL) when the firm is producing 100 units of output?
A. 0.5
B. 1
C. 1.5
D. 2
Question 14
A country's government imposes a tax on imports of a particular good. If the pre-tax price of the good is ₦100 and the tax rate is 20%, what is the new price of the good after the tax is imposed?
A. ₦80
B. ₦120
C. ₦100
D. ₦80
Question 15
A firm's total revenue (TR) is given by TR = 2Q^2 + 10Q. If the firm's marginal \cost (MC) is given by MC = Q + 5, what is the firm's optimal quantity?
A. 10
B. 20
C. 30
D. 40

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