POST UTME UNIPORT 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a total revenue function of \( TR = 100x - 2x^2 \) and a total \cost function of \( TC = 50 + 10x + 2x^2 \). What is the profit-maximizing level of output?
A. x = 5
B. x = 10
C. x = 15
D. x = 20
Question 2
A firm is considering investing in a new project. The project has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit produced. If the firm expects to sell 1,000 units of the product at ₦200 per unit, calculate the firm's profit u\sing the break-even analysis.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 3
A perfectly competitive market structure is characterized by the presence of many firms producing a homogeneous product, with each firm having no control over the market price. Which of the following is a consequence of this market structure?
A. Firms are able to set their own prices.
B. Firms are price-takers, meaning they have no control over the market price.
C. Firms are able to collude with each other to set prices.
D. Firms are able to produce differentiated products.
Question 4
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor and K is capital. If the firm's labor and capital are fixed at 16 and 9 units respectively, calculate the marginal \cost of labor.
A. ₦2
B. ₦4
C. ₦6
D. ₦8
Question 5
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $30 billion. What is its balance of trade?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 6
The money supply is the total amount of money available in an economy at any given time. Which of the following is a component of the money supply?
A. Currency in circulation
B. Deposits in commercial banks
C. Time deposits
D. All of the above
Question 7
A consumer's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the consumer's income is ₦1000, calculate the price elasticity of demand.
A. 0.5
B. 1
C. 2
D. 5
Question 8
A country's GDP is ₦1,000,000,000,000 and its GNP is ₦1,100,000,000,000. What is the country's 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 9
A country has a budget deficit of ₦500 billion and a GDP of ₦10 trillion. What is the likely effect of the budget deficit on the country's inflation rate?
A. The inflation rate will increase due to the increase in money supply.
B. The inflation rate will decrease due to the decrease in money supply.
C. The inflation rate will remain unchanged as the increase in money supply is offset by the decrease in demand.
D. The inflation rate will increase due to the increase in government sp\ending.
Question 10
The following table shows the national income accounts for a country.
A. GDP = 1000
B. GDP = 1200
C. GDP = 1500
D. GDP = 1800
Question 11
A government is considering implementing a new tax on a specific good. The tax will be levied on the producers of the good, and the revenue generated from the tax will be used to fund a public program. If the pre-tax price of the good is ₦100, and the tax rate is 20%, calculate the new price of the good after the tax is implemented.
A. ₦80
B. ₦120
C. ₦100
D. ₦140
Question 12
A firm's total revenue (TR) is given by the equation TR = 10q + 20q^2, where q is the quantity sold. If the firm's marginal revenue (MR) is 30q + 40q^2, find the value of q when MR = 0.
A. 5
B. 10
C. 15
D. 20
Question 13
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5, where Q is the quantity of the good produced, L is the amount of labor used, and K is the amount of capital used. If the firm is currently u\sing 100 units of labor and 100 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 3
Question 14
A firm is considering two different production processes to produce a certain good. Process A requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit. Process B requires an initial investment of ₦150,000 and has a variable \cost of ₦30 per unit. If the firm expects to sell 10,000 units of the good per year, which process should it choose?
A. Process A, because it has a lower initial investment and a higher variable \cost.
B. Process B, because it has a higher initial investment and a lower variable \cost.
C. Process A, because it has a higher initial investment and a lower variable \cost.
D. Process B, because it has a lower initial investment and a higher variable \cost.
Question 15
A firm's revenue function is given by R = 2Q - Q^2, where R is revenue and Q is quantity sold. If the firm sells 10 units, calculate the marginal revenue.
A. ₦20
B. ₦30
C. ₦40
D. ₦50

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