POST UTME UNILORIN 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two investment projects, A and B. Project A has a net present value (NPV) of ₦1 million and a payback period of 5 years. Project B has an NPV of ₦2 million and a payback period of 3 years. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally good
D. Neither project is good
Question 2
The money multiplier is the ratio of the change in the money supply to a change in
A. the money supply
B. the reserve requirement
C. the discount rate
D. the velocity of money
Question 3
A consumer has an indifference curve given by U = 2x + 3y and a budget constraint given by 2x + 3y = 30. What is the optimal consumption bundle?
A. x = 5, y = 5
B. x = 10, y = 0
C. x = 0, y = 10
D. x = 15, y = -5
Question 4
A country's GDP is ₦1,000,000,000,000, and its GNP is ₦1,100,000,000,000. What is the net factor income from abroad?
A. ₦100,000,000,000
B. ₦200,000,000,000
C. ₦300,000,000,000
D. ₦400,000,000,000
Question 5
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 4L + 5K. If the firm has 10 units of labor and 15 units of capital, what is the total output of the firm?
A. 50
B. 60
C. 70
D. 80
Question 6
A country's balance of payments is in equilibrium when the current account is equal to the capital account
A. true
B. false
C. only when the exchange rate is fixed
D. only when the exchange rate is floating
Question 7
A firm is faced with a production function F(L, K) = 10L^0.4K^0.6. If the price of labor is ₦50 per hour and the price of capital is ₦100 per hour, what is the optimal input combination?
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 15, K = 3
D. L = 20, K = 2
Question 8
The opportunity \cost of producing a good is the value of the next best alternative that is given up when
A. a good is produced
B. a good is consumed
C. a good is traded
D. a good is stored
Question 9
A firm's \cost function is given by C(q) = 10q^2 + 20q + 100. If the firm's revenue function is R(q) = 20q^2 - 10q + 100, what is the profit-maximizing quantity of output?
A. 5 units
B. 10 units
C. 15 units
D. 20 units
Question 10
A perfectly competitive firm's supply curve is upward-sloping because of the law of increa\sing
A. diminishing returns
B. increa\sing \costs
C. decrea\sing marginal revenue
D. cons\tant returns to scale
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C = 50 + 5Q. What is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 12
A perfectly competitive market is characterized by a \single price for a good or service
A. True
B. False
C. Maybe
D. Not sure
Question 13
A country has a trade deficit of ₦5 trillion and a GDP of ₦15 trillion. If the trade deficit is financed by foreign borrowing, what is the percentage change in the country's debt-to-GDP ratio when the trade deficit increases by 20%?
A. 5%
B. 10%
C. 15%
D. 20%
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, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm wants to produce 100 units of the good, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, find the optimal combination of labor and capital that minimizes the \cost of production.
A. L = 100, K = 100
B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 50

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