POST UTME UNIBEN 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government is considering implementing a new policy to reduce pollution. The policy will increase the \cost of production for firms in the industry by 10%. If the demand for the good is given by Q = 100 - 2P, what will be the new equilibrium price and quantity?
A. ₦80, Q = 60
B. ₦100, Q = 50
C. ₦120, Q = 40
D. ₦150, Q = 30
Question 2
A government decides to impose a tax of ₦5 per unit on a commodity. If the demand for the commodity is given by Qd = 100 - 2P and the supply is given by Qs = 2P - 10, find the new equilibrium price and quantity.
A. ₦60
B. ₦65
C. ₦70
D. ₦75
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 per unit of labor and r = ₦200 per unit of capital, and the firm's current output price is p = ₦500 per unit, calculate the firm's maximum profit.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 4
A country's money supply is ₦10,000 and its velocity of circulation is 5. If the central bank wants to increase the money supply to ₦15,000, what is the new velocity of circulation?
A. 3
B. 4
C. 5
D. 6
Question 5
A government decides to increase the budget for a project by 20%. If the initial budget is ₦500 million, find the new budget.
A. ₦550 million
B. ₦600 million
C. ₦650 million
D. ₦700 million
Question 6
A government imposes a tax of ₦20 on every unit of a good. If the demand function is given by Q = 100 - 2P, what is the new demand function after the tax?
A. Q = 100 - 2P - 40
B. Q = 100 - 2P + 20
C. Q = 100 - 2P - 10
D. Q = 100 - 2P + 10
Question 7
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 25 units, what is the total \cost?
A. 375
B. 425
C. 475
D. 525
Question 8
The Nigerian government has implemented a policy to increase industrialization and reduce poverty. Which of the following is a likely consequence of this policy?
A. Increased income inequality
B. Reduced poverty and increased industrialization
C. Increased unemployment
D. Decreased industrialization
Question 9
A consumer's indifference curve is represented 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, find the consumer's optimal bundle of x and y.
A. (200, 100)
B. (150, 150)
C. (100, 200)
D. (50, 250)
Question 10
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's output is 100 units and the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, find the firm's optimal input bundle of labor and capital.
A. (10, 5)
B. (5, 10)
C. (15, 7.5)
D. (7.5, 15)
Question 11
A central bank decides to increase the money supply by 10%. If the initial money supply is ₦100 billion, find the new money supply.
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 12
A consumer's utility function is given by 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?
A. x = 100, y = 50
B. x = 80, y = 60
C. x = 60, y = 70
D. x = 40, y = 80
Question 13
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost curve is MC = 10 + 2Q. What is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 14
The elasticity of demand for a product is 0.5. If the price of the product increases by 10%, what is the percentage change in the quantity demanded?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
A firm's \cost function is given by C(x) = x^2 + 5x + 10. If the firm produces 20 units, what is the total \cost?
A. 510
B. 520
C. 530
D. 540

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