POST UTME UNIOSUN 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a utility function U(x, y) = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $15, find the optimal consumption bundle.
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 4, y = 1
D. x = 1, y = 4
Question 2
A country's balance of payments is in equilibrium when its current account is equal to its capital account. What is the implication of this equilibrium for the country's exchange rate?
A. The exchange rate will appreciate
B. The exchange rate will depreciate
C. The exchange rate will remain cons\tant
D. The exchange rate will fluctuate
Question 3
A firm faces a demand curve given by Q = 100 - 2P and a marginal \cost function MC = 10 + 2P. Find the profit-maximizing price and quantity.
A. P = 50, Q = 25
B. P = 75, Q = 12.5
C. P = 100, Q = 0
D. P = 0, Q = 100
Question 4
A firm's average \cost curve is U-shaped. If the firm is currently operating at a point on the curve where the marginal \cost (MC) is equal to the average \cost (AC), what can be concluded about the firm's production level?
A. The firm is producing at its minimum efficient scale.
B. The firm is producing at its maximum efficient scale.
C. The firm is producing at a point where the law of diminishing marginal returns is applicable.
D. The firm is producing at a point where the law of increa\sing marginal returns is applicable.
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor input is 10 and capital input is 20, what is the firm's output?
A. 10
B. 20
C. 30
D. 40
Question 6
A consumer has a budget of $20 and faces prices of $2 and $3 for goods x and y respectively. If the consumer's utility function is U(x, y) = 2x + 3y, find the optimal consumption bundle.
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 4, y = 1
D. x = 1, y = 4
Question 7
A consumer has a utility function U(x, y) = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $15, find the optimal consumption bundle.
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 4, y = 1
D. x = 1, y = 4
Question 8
A firm faces a demand curve given by Q = 100 - 2P and a marginal \cost function MC = 10 + 2P. Find the profit-maximizing price and quantity.
A. P = 50, Q = 25
B. P = 75, Q = 12.5
C. P = 100, Q = 0
D. P = 0, Q = 100
Question 9
The Marshall-Lerner condition states that if the sum of the elasticities of demand for imports and exports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. Which of the following scenarios would lead to a violation of the Marshall-Lerner condition?
A. A decrease in the price of imports and an increase in the price of exports
B. An increase in the price of imports and a decrease in the price of exports
C. A decrease in the price of imports and a decrease in the price of exports
D. An increase in the price of imports and an increase in the price of exports
Question 10
A firm's \cost function is given by the equation C = 10L + 20K, where C is the \cost, L is the labor, and K is the capital. If the firm wants to minimize its \cost and the price of labor is $10 per hour, what is the optimal level of capital?
A. $100
B. $200
C. $300
D. $400
Question 11
A country's GDP is ₦1,000,000,000, its imports are ₦200,000,000, and its exports are ₦300,000,000. What is the country's balance of trade?
A. ₦100,000,000 surplus
B. ₦100,000,000 deficit
C. ₦200,000,000 surplus
D. ₦200,000,000 deficit
Question 12
The government of a country imposes a tax on a product, which increases the price of the product by 20%. If the demand for the product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price, find the new demand equation.
A. Qd = 80 - 2P
B. Qd = 100 - 4P
C. Qd = 120 - 2P
D. Qd = 100 - 6P
Question 13
A country's balance of payments is in equilibrium when the current account is balanced and the capital account is balanced. Which of the following is a characteristic of a country with a balanced balance of payments?
A. The country has a trade surplus.
B. The country has a trade deficit.
C. The country has a capital account surplus.
D. The country has a capital account deficit.
Question 14
The Marshall-Lerner condition states that a country will experience an improvement in its balance of payments if the sum of the elasticities of demand for imports and exports exceeds 1. What is the implication of this condition for a country with an inelastic demand for imports and exports?
A. The country will experience a deterioration in its balance of payments.
B. The country will experience no change in its balance of payments.
C. The country will experience an improvement in its balance of payments.
D. The country will experience a worsening of its trade deficit.
Question 15
A consumer's utility function is given by the equation U = 2x + 3y, where x and y are the quantities of two goods consumed. What is the marginal utility of good x?
A. MUx = 2.
B. MUx = 3.
C. MUx = 4.
D. MUx = 5.

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