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POST UTME UNIPORT 2021 Economics | Objective

Are you preparing for POST UTME UNIPORT exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1

Consider a production function given by $ Q = 100K^{\frac{1}{3}}L^{\frac{2}{3}} $, where Q is the output, K is the capital, and L is the labor. If the marginal product of labor (MPL) is 20, and the marginal product of capital (MPK) is 15, what is the value of the output elasticity of labor?

Correct A. 0.5

B. 1.0

C. 1.5

D. 2.0

Correct Answer: A

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Question 2

A country's GDP is 100 billion naira, and its GNP is 120 billion naira. If the country's net factor income from abroad is 10 billion naira, what is the value of its net domestic product?

A. 110 billion naira

Correct B. 120 billion naira

C. 130 billion naira

D. 140 billion naira

Correct Answer: B

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Question 3

A firm's demand function is given by $ Q = 100 - 2P $, where Q is the quantity demanded and P is the price. If the firm's marginal revenue (MR) is 20, what is the value of its price elasticity of demand?

A. -0.5

Correct B. -1.0

C. -1.5

D. -2.0

Correct Answer: B

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Question 4

A country's balance of payments (BOP) is given by the following equation: $ BOP = X - M $, where X is the value of exports and M is the value of imports. If the country's exports are 50 billion naira and its imports are 60 billion naira, what is the value of its balance of payments?

Correct A. -10 billion naira

B. -5 billion naira

C. 0 billion naira

D. 5 billion naira

Correct Answer: A

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Question 5

A firm's production function is given by $ Q = 100K^{\frac{1}{2}}L^{\frac{1}{2}} $, where Q is the output, K is the capital, and L is the labor. If the firm's marginal product of labor (MPL) is 20, and the marginal product of capital (MPK) is 15, what is the value of the output elasticity of capital?

A. 0.5

B. 1.0

C. 1.5

Correct D. 2.0

Correct Answer: D

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Question 6

Consider a monopolistically competitive firm in the short run. If the firm's average total \cost curve intersects its marginal revenue curve at a point where the firm is operating at a loss, what is the likely cause of this loss?

Correct A. The firm has a high fixed \cost.

B. The firm has a low elasticity of demand.

C. The firm has a high marginal \cost.

D. The firm has a low marginal revenue.

Correct Answer: A

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Question 7

A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5 per unit of labor, what is the optimal level of labor to hire?

A. 10 units of labor

Correct B. 20 units of labor

C. 30 units of labor

D. 40 units of labor

Correct Answer: B

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Question 8

A country is experiencing a recession. The government decides to implement a fiscal policy to stimulate the economy. Which of the following fiscal policies would be most effective in stimulating the economy?

Correct A. Increa\sing government sp\ending on infrastructure

B. Reducing taxes on corporations

C. Increa\sing government sp\ending on social welfare programs

D. Reducing government sp\ending on defense

Correct Answer: A

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Question 9

A firm is facing a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?

A. Total revenue will increase

Correct B. Total revenue will decrease

C. Total revenue will remain the same

D. Total revenue will increase at a decrea\sing rate

Correct Answer: B

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Question 10

A country is experiencing a trade deficit. Which of the following policies would help to reduce the trade deficit?

A. Increa\sing tariffs on imported goods

Correct B. Reducing taxes on exports

C. Increa\sing government sp\ending on domestic goods

D. Reducing government sp\ending on defense

Correct Answer: B

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Question 11

A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's initial \endowment is $ x_0, y_0 \ $ = (10, 20) ), and the price of good x is $ p_x = 2 $, find the consumer's optimal bundle of goods x and y.

Correct A. ( (5, 15) )

B. ( (10, 20) )

C. ( (15, 25) )

D. ( (20, 30) )

Correct Answer: A

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Question 12

A government budget is given by the equation ( B(t) = 100 + 2t ), where t is the time period. If the government's initial budget is ( B(0) = 100 ), and the government wants to increase its budget by 10% every year, find the government's budget after 5 years.

A. ( 150 )

B. ( 160 )

C. ( 170 )

Correct D. ( 180 )

Correct Answer: D

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Question 13

A firm's production function is given by the equation $ Q = 2L^2 + 3K^2 $, where L is the labor input and K is the capital input. If the firm's initial labor input is $ L_0 = 10 $ and capital input is $ K_0 = 20 $, and the firm wants to increase its output by 20% every year, find the firm's new labor and capital inputs after 5 years.

A. $ L = 20, K = 40 $

B. $ L = 30, K = 60 $

C. $ L = 40, K = 80 $

Correct D. $ L = 50, K = 100 $

Correct Answer: D

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Question 14

A central bank's monetary policy is given by the equation $ M = 100 + 2R $, where M is the money supply and R is the interest rate. If the central bank's initial money supply is $ M_0 = 100 $ and interest rate is $ R_0 = 5 $, and the central bank wants to increase its money supply by 10% every year, find the central bank's new money supply and interest rate after 5 years.

A. $ M = 110, R = 5.5 $

B. $ M = 120, R = 6 $

C. $ M = 130, R = 6.5 $

Correct D. $ M = 140, R = 7 $

Correct Answer: D

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Question 15

A firm's \cost function is given by the equation $ C = 100 + 2L + 3K $, where L is the labor input and K is the capital input. If the firm's initial labor input is $ L_0 = 10 $ and capital input is $ K_0 = 20 $, and the firm wants to minimize its \costs, find the firm's optimal labor and capital inputs.

A. $ L = 5, K = 10 $

Correct B. $ L = 10, K = 20 $

C. $ L = 15, K = 30 $

D. $ L = 20, K = 40 $

Correct Answer: B

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Question 16

Determine the opportunity \cost of producing 100 units of a good when the marginal \cost is ₦120 and the marginal benefit is ₦150.

A. ₦12000

Correct B. ₦15000

C. ₦18000

D. ₦20000

Correct Answer: B

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Question 17

A firm's demand curve is given by Qd = 100 - 2P and the supply curve is given by Qs = 2P. Find the equilibrium price and quantity.

A. P = ₦20, Q = 60

B. P = ₦30, Q = 80

Correct C. P = ₦40, Q = 100

D. P = ₦50, Q = 120

Correct Answer: C

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Question 18

A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦20 and ₦30 respectively, find the optimal consumption bundle.

Correct A. x = 2, y = 1

B. x = 3, y = 2

C. x = 4, y = 3

D. x = 5, y = 4

Correct Answer: A

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Question 19

A country's GDP is given by GNP + $ Imports - Exports $. If the GNP is ₦1000, imports are ₦200 and exports are ₦150, find the GDP.

A. ₦1050

Correct B. ₦1100

C. ₦1150

D. ₦1200

Correct Answer: B

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Question 20

A firm's production function is given by Q = 2L + 3K. If the firm's output is 100 units and the wage rate is ₦20 per unit of labor, find the optimal level of capital.

A. K = 10

Correct B. K = 20

C. K = 30

D. K = 40

Correct Answer: B

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Question 21

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?

Correct A. The firm will increase its output.

B. The firm will decrease its output.

C. The firm's output will remain unchanged.

D. The firm will exit the market.

Correct Answer: A

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Question 22

A consumer's indifference curve is given 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?

Correct A. (20, 10)

B. (15, 15)

C. (10, 20)

D. (5, 30)

Correct Answer: A

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Question 23

A country's balance of payments is given by the following equation: BOP = $ X - M $ + $ F - I $. If the country's exports (X) are ₦1000, imports (M) are ₦800, foreign investment (F) is ₦500, and domestic investment (I) is ₦200, what is the country's balance of payments?

Correct A. ₦300

B. ₦400

C. ₦500

D. ₦600

Correct Answer: A

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Question 24

A firm's production function is given by the equation Q = 2L^2 + 3K^2. If the firm's labor (L) is 5 units and capital (K) is 3 units, what is the firm's output?

A. 25

Correct B. 30

C. 35

D. 40

Correct Answer: B

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Question 25

A consumer's utility function is given by the equation u(x,y) = x^2 + 2y^2. 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. (10, 5)

Correct B. (15, 10)

C. (20, 15)

D. (25, 20)

Correct Answer: B

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