POST UTME UNIPORT 2022 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 2022 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Consider a country with a GDP of ₦10 trillion and a GNP of ₦12 trillion. If the net factor income from abroad is ₦1.5 trillion, what is the value of the country's net foreign investment?
A. ₦2.5 trillion
B. ₦3 trillion
Correct C. ₦1.5 trillion
D. ₦2 trillion

Correct Answer: C

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Question 2
A central bank is considering a monetary policy to reduce inflation. If the current inflation rate is 8% and the target inflation rate is 4%, what is the required decrease in the money supply?
A. ₦100 billion
Correct B. ₦200 billion
C. ₦300 billion
D. ₦400 billion

Correct Answer: B

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Question 3
A firm is considering a project with a net present value (NPV) of ₦1.2 million. If the \cost of capital is 10%, what is the internal rate of return (IRR) of the project?
Correct A. 12%
B. 15%
C. 18%
D. 20%

Correct Answer: A

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Question 4
A country is experiencing a trade deficit of ₦500 billion. If the exchange rate is ₦200 per dollar, what is the value of the country's trade deficit in dollars?
A. $2.5 billion
B. $2.8 billion
Correct C. $3 billion
D. $3.2 billion

Correct Answer: C

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Question 5
A firm is considering a project with a payback period of 3 years. If the project requires an initial investment of ₦1.5 million, what is the annual cash inflow of the project?
A. ₦500,000
B. ₦600,000
Correct C. ₦700,000
D. ₦800,000

Correct Answer: C

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Question 6
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 increases labor from 100 units to 121 units, and capital from 100 units to 121 units, by how much will output increase?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 7
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are prices, Q1 and Q2 are quantities, and I is income. If the consumer increases income from ₦1000 to ₦1200, and the price of good 1 from ₦5 to ₦6, by how much will the quantity of good 2 increase?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 8
A firm's \cost function is given by TC = 100 + 2L + 3K, where TC is total \cost, L is labor, and K is capital. If the firm increases labor from 50 units to 60 units, and capital from 50 units to 60 units, by how much will total \cost increase?
A. ₦100
Correct B. ₦200
C. ₦300
D. ₦400

Correct Answer: B

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Question 9
A consumer's indifference curve is given by U = 2Q1 + Q2, where U is utility, Q1 and Q2 are quantities. If the consumer increases quantity 1 from 10 units to 11 units, and quantity 2 from 10 units to 11 units, by how much will utility increase?
A. 2 units
Correct B. 4 units
C. 6 units
D. 8 units

Correct Answer: B

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Question 10
A firm's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is quantity. If the firm increases quantity from 10 units to 11 units, by how much will revenue increase?
A. ₦10
Correct B. ₦20
C. ₦30
D. ₦40

Correct Answer: B

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Question 11
Consider a country with a GDP of ₦10 trillion and a GNP of ₦12 trillion. If the country's net factor income from abroad is ₦1.5 trillion, what is the value of its net domestic product?
Correct A. ₦8.5 trillion
B. ₦9.5 trillion
C. ₦10.5 trillion
D. ₦11.5 trillion

Correct Answer: A

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Question 12
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm's revenue function is R(q) = 20q, what is the firm's profit-maximizing quantity?
A. 5 units
Correct B. 10 units
C. 15 units
D. 20 units

Correct Answer: B

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Question 13
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, what is the consumer's optimal bundle?
A. (2,4)
Correct B. (3,3)
C. (4,2)
D. (5,1)

Correct Answer: B

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Question 14
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are ₦10 billion, imports are ₦8 billion, foreign investment is ₦2 billion, and domestic investment is ₦3 billion, what is the country's balance of payments?
Correct A. ₦2 billion surplus
B. ₦1 billion deficit
C. ₦3 billion surplus
D. ₦4 billion deficit

Correct Answer: A

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Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 4 and 9 respectively, what is the firm's output?
A. 16 units
B. 18 units
Correct C. 20 units
D. 22 units

Correct Answer: C

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Question 16
A monopolistically competitive firm faces a demand curve with the following equation: \( Q = 100 - 2P \). If the firm's marginal revenue function is \( MR = 50 - 2Q \), what is the firm's optimal price?
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

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Question 17
A country's balance of payments 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 ₦100 billion and its imports are ₦120 billion, what is the country's balance of payments?
A. ₦20 billion surplus
Correct B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit

Correct Answer: B

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Question 18
A firm's production function is given by the following equation: \( Q = 10L^{0.5}K^{0.5} \), where ( L ) is labor and ( K ) is capital. If the firm's marginal product of labor is \( MPL = 5L^{-0.5}K^{0.5} \), what is the firm's optimal level of labor?
A. 10 units
B. 20 units
Correct C. 30 units
D. 40 units

Correct Answer: C

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Question 19
A country's government is considering implementing a tax on imports. The tax is expected to raise ₦10 billion in revenue. If the tax is expected to reduce imports by 10%, what is the tax rate?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 20
A firm's \cost function is given by the following equation: \( C = 100 + 2L + 3K \), where ( L ) is labor and ( K ) is capital. If the firm's revenue function is \( R = 200L + 300K \), what is the firm's profit-maximizing level of labor?
A. 20 units
Correct B. 30 units
C. 40 units
D. 50 units

Correct Answer: B

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Question 21
A government imposes a tax on a particular good to reduce its consumption. If the demand curve for the good is downward sloping and the tax is not passed on to consumers, what will be the effect on the equilibrium price and quantity of the good?
Correct A. The equilibrium price will increase, and the equilibrium quantity will decrease.
B. The equilibrium price will decrease, and the equilibrium quantity will increase.
C. The equilibrium price will remain the same, and the equilibrium quantity will decrease.
D. The equilibrium price will increase, and the equilibrium quantity will increase.

Correct Answer: A

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Question 22
A country's balance of payments is in deficit, and the central bank decides to intervene by selling foreign exchange on the market. What will be the effect on the exchange rate?
A. The exchange rate will appreciate.
Correct B. The exchange rate will depreciate.
C. The exchange rate will remain the same.
D. The exchange rate will fluctuate wildly.

Correct Answer: B

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Question 23
A consumer is faced with the following utility function: U(x, y) = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what will be the consumer's optimal bundle of x and y?
A. x = 10, y = 10
B. x = 20, y = 5
C. x = 5, y = 20
Correct D. x = 15, y = 15

Correct Answer: D

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Question 24
A firm is a monopolist in a market with the demand curve given by Q = 100 - 2P. If the firm's marginal \cost is cons\tant at ₦10, what will be the firm's optimal price and quantity?
A. P = ₦40, Q = 30
Correct B. P = ₦30, Q = 40
C. P = ₦20, Q = 50
D. P = ₦50, Q = 20

Correct Answer: B

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Question 25
A country is experiencing a recession, and the government decides to implement a fiscal policy to stimulate the economy. What type of fiscal policy would be most effective in this situation?
Correct A. Expansionary fiscal policy
B. Contractionary fiscal policy
C. Neutral fiscal policy
D. Monetarist policy

Correct Answer: A

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