POST UTME UNILORIN 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a closed economy with a GDP of ₦100 billion and a GNP of ₦120 billion. If the net factor income from abroad is ₦20 billion, what is the value of the net foreign investment?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 2
A country's inflation rate is 5% per annum. If the nominal interest rate is 10% per annum, what is the real interest rate?
A. 5%
B. 10%
C. 15%
D. 20%
Question 3
The concept of returns to scale in production theory suggests that as the scale of production increases, the marginal product of labor will eventually decrease. Which of the following is a correct example of a firm that exhibits decrea\sing returns to scale?
A. A firm that produces 100 units of output with 10 units of labor
B. A firm that produces 1000 units of output with 100 units of labor
C. A firm that produces 1000 units of output with 10 units of labor
D. A firm that produces 100 units of output with 100 units of labor
Question 4
A consumer's utility function is given by U = 2x + 3y, where U is utility, x is the quantity of good x, and y is the quantity of good y. If the consumer's income is ₦100 and the prices of good x and good y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1
Question 5
A firm is producing a good with a production function Q = 2L^2 + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm is currently producing 100 units of output with 10 units of labor and 5 units of capital, find the marginal product of labor.
A. 20
B. 30
C. 40
D. 50
Question 6
The money multiplier is the ratio of the change in the money supply to the change in the reserve requirement. If the reserve requirement is reduced from 20% to 15%, and the initial money supply is ₦100 billion, what is the new money supply if the commercial banks decide to increase their l\ending by ₦20 billion?
A. ₦120 billion
B. ₦125 billion
C. ₦130 billion
D. ₦135 billion
Question 7
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its quantity demanded?
A. The quantity demanded will increase because the firm is increa\sing its price.
B. The quantity demanded will decrease because the firm is increa\sing its price.
C. The quantity demanded will remain unchanged because the firm is increa\sing its price.
D. The quantity demanded will increase because the firm is decrea\sing its price.
Question 8
A firm's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is ₦50, what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 50 units, what is its total revenue?
A. ₦2500
B. ₦3000
C. ₦3500
D. ₦4000
Question 10
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, find the price at which the quantity demanded is 60 units.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 11
A firm is producing a good with a production function Q = 2L^2 + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm is currently producing 100 units of output with 10 units of labor and 5 units of capital, find the marginal product of labor.
A. 20
B. 30
C. 40
D. 50
Question 12
A firm's \cost function is given by the equation C(x) = 50 + 10x + 2x^2, where x is the number of units produced. If the firm produces 20 units, what is its total \cost?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 13
A country's agricultural sector is characterized by a high degree of seasonality, with most crops being harvested during a specific period of the year. Which of the following is a correct example of a policy that would help to mitigate the effects of seasonality on agricultural production?
A. Providing subsidies to farmers during the off-season
B. Providing training to farmers on new farming techniques
C. Providing credit to farmers during the off-season
D. Providing storage facilities to farmers during the off-season
Question 14
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, find the price at which the quantity demanded is 60 units.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 15
A monopolistically competitive firm faces a demand curve that is downward sloping and a supply curve that is upward sloping. Which of the following is a characteristic of the firm's short-run equilibrium?
A. The firm is producing at a level of output where price equals marginal revenue
B. The firm is producing at a level of output where price equals marginal \cost
C. The firm is producing at a level of output where price equals average revenue
D. The firm is producing at a level of output where price equals average \cost

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