POST UTME UNIOSUN 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A central bank has a money supply function given by M = 1000 + 10Y. If the central bank's target inflation rate is 2%, and the current inflation rate is 3%, what is the central bank's optimal money supply?
A. ₦1100
B. ₦1200
C. ₦1300
D. ₦1400
Question 2
The opportunity \cost of producing one more unit of a good is the
A. Additional revenue generated from the sale of the good
B. The \cost of producing the good
C. The \cost of producing one less unit of the good
D. The \cost of producing one more unit of the good
Question 3
A country's balance of payments is in equilibrium when the value of its
A. Exports equals imports
B. Exports exceeds imports
C. Imports exceeds exports
D. Exports and imports are equal
Question 4
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. (100, 150)
B. (200, 100)
C. (150, 200)
D. (250, 50)
Question 5
A government has a budget deficit of 5% of GDP and a tax revenue of 20% of GDP. What is the government's exp\enditure?
A. 25% of GDP
B. 30% of GDP
C. 35% of GDP
D. 40% of GDP
Question 6
A firm operating in a perfectly competitive market is characterized by which of the following?
A. A \single price maker
B. Many firms producing a homogeneous product
C. A firm with a high degree of market power
D. A firm that is the only supplier of a good or service
Question 7
A country's balance of payments account shows a trade deficit. What is the likely effect on its exchange rate?
A. Appreciation of the currency
B. Depreciation of the currency
C. No change in the exchange rate
D. Uncertainty about the exchange rate
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is 20, what is its profit-maximizing price?
A. 40
B. 50
C. 60
D. 70
Question 9
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 10
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A government's budget shows a deficit. What is the likely effect on its interest rate?
A. Increase in interest rate
B. Decrease in interest rate
C. No change in interest rate
D. Uncertainty about interest rate
Question 12
A country's GDP is ₦1,000,000,000. If the country's population is 20,000,000, what is the country's per capita income?
A. ₦50
B. ₦100
C. ₦200
D. ₦500
Question 13
A firm's demand curve is downward sloping, while its supply curve is upward sloping. What is the likely effect on the firm's profit?
A. Increase in profit
B. Decrease in profit
C. No change in profit
D. Uncertainty about profit
Question 14
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's revenue is ₦1000, what is the price elasticity of demand?
A. -0.5
B. -1
C. -2
D. -5
Question 15
A government imposes a tax on a particular good, resulting in a decrease in its demand. What is the likely effect on the government's revenue?
A. Increase in revenue
B. Decrease in revenue
C. No change in revenue
D. Uncertainty about revenue

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