POST UTME UNIPORT 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer is faced with the following budget constraint: 2x + 3y = 18. If the price of good x is ₦2 and the price of good y is ₦3, what is the consumer's utility-maximizing bundle?
A. (3, 6)
B. (6, 3)
C. (9, 0)
D. (0, 9)
Question 2
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will be the effect on its revenue?
A. Revenue will increase as the firm is able to charge a higher price.
B. Revenue will decrease as the firm is unable to sell as much at the higher price.
C. Revenue will remain the same as the firm is able to sell the same quantity at the higher price.
D. Revenue will increase as the firm is able to sell more at the higher price.
Question 3
A consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of units of good X and y is the number of units of good Y. If the consumer's income is ₦1,000 and the prices of good X and good Y are ₦50 and ₦75, respectively, what is the optimal bundle of goods?
A. x = 10, y = 5
B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1
Question 4
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, and the firm wants to maximize its profit, what will be the optimal values of L and K?
A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 150, K = 150
Question 5
A firm's demand curve 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.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A country's national income is given by N = C + I + G, where C is consumption, I is investment, and G is government sp\ending. If the country's consumption is ₦500 billion, investment is ₦200 billion, and government sp\ending is ₦300 billion, what is its national income?
A. ₦1000
B. ₦1500
C. ₦2000
D. ₦2500
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor and K is capital. If the firm increases labor from 4 to 9 units and capital from 9 to 16 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
A firm's demand curve is given by the equation Q = 100 - 2P. If the firm's marginal revenue (MR) curve is also linear and downward-sloping, and the MR curve intersects the average revenue (AR) curve at a point where the elasticity of demand is 2, what is the slope of the demand curve?
A. 0.5
B. 1
C. 2
D. 4
Question 9
Consider a closed economy with a \single good and service. If the government imposes a 20% tax on the production of this good, and the supply curve shifts to the left by 10 units, what will be the new equilibrium price and quantity?
A. ₦100, 50 units
B. ₦120, 40 units
C. ₦80, 60 units
D. ₦90, 55 units
Question 10
Consider a perfectly competitive market with a large number of firms producing a homogeneous product. If the market price falls below the average total \cost of production, what will be the likely outcome for the firms in the market?
A. Firms will increase production to take advantage of the lower market price.
B. Firms will decrease production to reduce losses.
C. Firms will exit the market as they are unable to cover their average total \cost.
D. Firms will increase prices to match the market price.
Question 11
A firm is considering investing in a new project with the following cash flows: ₦100,000 in year 1, ₦120,000 in year 2, and ₦150,000 in year 3. If the discount rate is 10%, what is the present value of the project?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 12
A monopolist faces a market demand curve that is linear and downward-sloping. The monopolist's marginal revenue (MR) curve is also linear and downward-sloping. If the MR curve intersects the average revenue (AR) curve at a point where the elasticity of demand is 3, what is the slope of the demand curve?
A. 0.33
B. 0.5
C. 1
D. 2
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm has 100 labor units and 200 capital units, what is the maximum quantity that can be produced?
A. 50
B. 100
C. 150
D. 200
Question 14
A country's national income is ₦100 billion. If the government increases the income tax rate from 10% to 15%, what is the new national income?
A. ₦90 billion
B. ₦95 billion
C. ₦100 billion
D. ₦105 billion
Question 15
Consider a country with a money supply of ₦5 trillion and a velocity of circulation of 2. If the country's GDP is ₦10 trillion, what is the price level?
A. ₦2
B. ₦3
C. ₦4
D. ₦5

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