POST UTME UNIOSUN 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is $100 billion, and its GNP is $120 billion. If the country has a net factor income from abroad of $10 billion, what is the country's net national product?
A. $110 billion
B. $120 billion
C. $130 billion
D. $140 billion
Question 2
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $2 and $3, respectively, and the consumer's income is $10, what is the optimal bundle of goods that maximizes utility?
A. x = 2, y = 1
B. x = 3, y = 2
C. x = 4, y = 3
D. x = 5, y = 4
Question 3
Suppose a country has a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. If the country's exchange rate is fixed at ₦200 per dollar, calculate the country's balance of payments deficit.
A. ₦50 billion
B. ₦75 billion
C. ₦100 billion
D. ₦125 billion
Question 4
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 is 20, what is the quantity demanded?
A. 60
B. 70
C. 80
D. 90
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 10% and 20%, respectively, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 6
The government of a country wants to increase its GDP by 10% in a year. If the current GDP is ₦100 billion, what is the required increase in the national income?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 7
A farmer produces wheat and corn. The production of wheat requires 2 hours of labor and 1 hour of land, while the production of corn requires 1 hour of labor and 2 hours of land. If the farmer has 4 hours of labor and 3 hours of land available, how much of each crop should he produce to maximize his profit?
A. 2 units of wheat and 1 unit of corn
B. 1 unit of wheat and 2 units of corn
C. 3 units of wheat and 1 unit of corn
D. 1 unit of wheat and 3 units of corn
Question 8
Suppose the demand for a product is given by the inverse demand function p = 100 - 2q, where p is the price and q is the quantity demanded. If the price elasticity of demand is defined as E_d = \( p/q \) * \( dq/dp \), calculate the price elasticity of demand at the quantity demanded of 30 units.
A. -20
B. -10
C. 10
D. 20
Question 9
A firm's \cost function is given by C(q) = 2q^2 + 10q + 100. If the firm's revenue function is R(q) = 20q, calculate the firm's profit-maximizing output level.
A. 5 units
B. 10 units
C. 15 units
D. 20 units
Question 10
A government's budget is given by B = T + H - G, where B is the budget surplus, T is the tax revenue, H is the non-tax revenue, and G is the government exp\enditure. If the government's tax revenue is ₦500 billion, non-tax revenue is ₦200 billion, and government exp\enditure is ₦700 billion, calculate the government's budget surplus.
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 11
Consider a country with a fixed exchange rate of ₦5 per US dollar. If the country's GDP at market prices is ₦10 trillion and the implicit price deflator is 1.2, calculate the country's GDP at cons\tant prices.
A. ₦8.33 trillion
B. ₦10 trillion
C. ₦12 trillion
D. ₦15 trillion
Question 12
A firm's total revenue (TR) is given by the equation TR = 100q - 2q^2, where q is the quantity sold. If the firm sells 20 units, what is its total revenue?
A. 1000
B. 1200
C. 1400
D. 1600
Question 13
A firm's marginal revenue (MR) is given by the equation MR = 100 - 2q, where q is the quantity sold. If the firm sells 20 units, what is its marginal revenue?
A. 80
B. 90
C. 100
D. 110
Question 14
A monopolist faces a demand curve with the following equation: \( Q = 100 - 2P \). If the marginal revenue is \( MR = 50 - 2Q \), what is the profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 15
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production functions for the two goods are given by q_A = 2L^0.5K^0.5 and q_B = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, calculate the output of good A.
A. 50
B. 75
C. 100
D. 125

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