POST UTME UI 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will happen to the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Question 2
In a perfectly competitive market, the demand curve for a firm's product is perfectly elastic. If the market price of the product is $10, and the firm's marginal revenue (MR) is $8, what is the firm's marginal \cost (MC)?
A. $6
B. $8
C. $10
D. $12
Question 3
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal product of labor
B. marginal product of capital
C. marginal social benefit
D. marginal social \cost
Question 4
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the labor and K is the capital. If the labor is 10 units and the capital is 5 units, what is the quantity produced?
A. 20
B. 25
C. 30
D. 35
Question 5
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor cons\tant at 100 units, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 6
A firm's production function is given by \( Q = 2L^0.5K^0.5 \). If the firm's output is 100 units and the price of labor is ₦10 per unit, what is the minimum \cost of production?
A. ₦1000
B. ₦2000
C. ₦5000
D. ₦10000
Question 7
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. Find the equilibrium price and quantity.
A. ₦50, 200 units
B. ₦75, 150 units
C. ₦100, 100 units
D. ₦125, 50 units
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost (MC) is $10. What is the monopolist's optimal price?
A. $40
B. $50
C. $60
D. $70
Question 9
A country's national income is given by the equation Y = C + I + G, where Y is national income, C is consumption, I is investment, and G is government sp\ending. If the country's national income is $100 billion, consumption is $60 billion, investment is $20 billion, and government sp\ending is $10 billion, what is the multiplier effect?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 10
The government of a country imposes a tax on imported goods to raise revenue. If the tax is 10% of the value of the imported goods, and the value of the imported goods is ₦100,000, what is the amount of tax paid?
A. ₦10,000
B. ₦5,000
C. ₦20,000
D. ₦15,000
Question 11
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal product of labor
B. marginal product of capital
C. marginal social benefit
D. marginal social \cost
Question 12
A firm's supply function is given by Qs = 2P + 3Y, where Qs is the quantity supplied, P is the price, and Y is the income. If the price is ₦20 and the income is ₦100, calculate the quantity supplied.
A. 20
B. 30
C. 40
D. 50
Question 13
A country's balance of payments is in equilibrium when the
A. current account is in surplus
B. capital account is in surplus
C. trade balance is zero
D. all of the above
Question 14
A firm's demand function is given by Qd = 100 - 2P + 3Y, where Qd is the quantity demanded, P is the price, and Y is the income. If the price is ₦20 and the income is ₦100, calculate the quantity demanded.
A. 20
B. 30
C. 40
D. 50
Question 15
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 5 units of output, what is the total \cost of production?
A. ₦45
B. ₦55
C. ₦65
D. ₦75

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: