POST UTME UNIPORT 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
C. $3 billion
D. $3.2 billion
Question 2
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
C. 30 units
D. 40 units
Question 3
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
B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit
Question 4
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
B. ₦75
C. ₦100
D. ₦125
Question 5
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
B. ₦200
C. ₦300
D. ₦400
Question 6
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
C. 20 units
D. 22 units
Question 7
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?
A. ₦2 billion surplus
B. ₦1 billion deficit
C. ₦3 billion surplus
D. ₦4 billion deficit
Question 8
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?
A. Expansionary fiscal policy
B. Contractionary fiscal policy
C. Neutral fiscal policy
D. Monetarist policy
Question 9
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
B. ₦20
C. ₦30
D. ₦40
Question 10
A firm's \cost function is given by C = 100 + 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm's current labor and capital inputs are 20 units and 30 units respectively, calculate the firm's current \cost.
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 11
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
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 12
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?
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.
Question 13
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?
A. 12%
B. 15%
C. 18%
D. 20%
Question 14
A firm's \cost function is given by C = 100 + 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm's current labor and capital inputs are 30 units and 25 units respectively, calculate the firm's current \cost.
A. ₦350
B. ₦400
C. ₦450
D. ₦500
Question 15
A firm's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is output. Find the firm's profit-maximizing output.
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40

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