POST UTME UNIBEN 2020 Economics | Objective

Are you preparing for POST UTME UNIBEN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price and quantity?
Correct A. P = 40, Q = 30
B. P = 50, Q = 20
C. P = 60, Q = 10
D. P = 70, Q = 5

Correct Answer: A

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Question 2
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?
Correct A. x = 100, y = 50
B. x = 80, y = 60
C. x = 60, y = 70
D. x = 40, y = 80

Correct Answer: A

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Question 3
A firm has a production function F(L, K) = 2L^0.5K^0.5. If the firm's \cost of labor is ₦10 per unit and the \cost of capital is ₦20 per unit, what is the firm's optimal input mix?
Correct A. L = 100, K = 50
B. L = 80, K = 60
C. L = 60, K = 70
D. L = 40, K = 80

Correct Answer: A

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Question 4
A firm's demand curve is given by Q = 100 - 2P. If the firm's \cost function is C(Q) = 2Q^2 + 10Q, what is the firm's profit-maximizing price and quantity?
Correct A. P = 40, Q = 30
B. P = 50, Q = 20
C. P = 60, Q = 10
D. P = 70, Q = 5

Correct Answer: A

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Question 5
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?
Correct A. x = 100, y = 50
B. x = 80, y = 60
C. x = 60, y = 70
D. x = 40, y = 80

Correct Answer: A

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Question 6
Consider a firm operating in a perfectly competitive market with a production function 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
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 7
The Nigerian government has implemented a policy to increase agricultural production and reduce poverty. Which of the following is a likely consequence of this policy?
A. Increased income inequality
Correct B. Reduced poverty and increased agricultural production
C. Increased unemployment
D. Decreased agricultural production

Correct Answer: B

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Question 8
A firm's production function is given by Q = 3L^0.7K^0.3. If the firm's current input prices are w = ₦150 per unit of labor and r = ₦300 per unit of capital, and the firm's current output price is p = ₦600 per unit, calculate the firm's maximum profit.
A. ₦15,000
B. ₦30,000
Correct C. ₦45,000
D. ₦60,000

Correct Answer: C

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Question 9
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
Correct B. Reduced poverty and increased industrialization
C. Increased unemployment
D. Decreased industrialization

Correct Answer: B

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Question 10
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
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 11
The agricultural sector in Nigeria is characterized by a high degree of fragmentation, with many small-scale farmers operating on marginal lands. What is the likely impact of this fragmentation on agricultural productivity?
A. Increased productivity due to economies of scale
Correct B. Decreased productivity due to lack of access to modern techno\logy
C. No impact on productivity
D. Increased productivity due to increased competition

Correct Answer: B

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Question 12
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
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 13
A firm is producing a good u\sing a production function given by Q = 2L^0.5K^0.5. The firm's \cost function is C = 10L + 20K. What is the firm's optimal input combination?
Correct A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 1
D. L = 1, K = 16

Correct Answer: A

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Question 14
A firm is facing a market structure characterized by a \single buyer and multiple sellers. What is the likely outcome for the firm's price and output?
A. Price increases, output decreases
Correct B. Price decreases, output increases
C. Price remains cons\tant, output increases
D. Price increases, output increases

Correct Answer: B

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Question 15
A firm is experiencing a 10% increase in demand for its product. The firm's production function is given by Q = 2L^0.5K^0.5. What is the firm's optimal input combination?
A. L = 4, K = 9
Correct B. L = 9, K = 4
C. L = 16, K = 1
D. L = 1, K = 16

Correct Answer: B

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Question 16
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.
Correct A. (200, 100)
B. (150, 150)
C. (100, 200)
D. (50, 250)

Correct Answer: A

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Question 17
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)
Correct C. (15, 7.5)
D. (7.5, 15)

Correct Answer: C

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Question 18
A firm's total \cost function is given by \( TC = 2L^2 + 3K^2 + 100 \). 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)
Correct C. (15, 7.5)
D. (7.5, 15)

Correct Answer: C

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Question 19
A consumer's budget constraint is given by \( 2x + 3y = 100 \). If the consumer's utility function is ( u(x,y) = 2x + 3y ), find the consumer's optimal bundle of x and y.
A. (20, 30)
B. (30, 20)
Correct C. (25, 25)
D. (10, 40)

Correct Answer: C

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Question 20
A firm's demand function is given by \( Q = 100 - 2P \). If the firm's supply function is \( Q = 2P - 100 \), find the equilibrium price and quantity.
Correct A. P = 50, Q = 150
B. P = 75, Q = 100
C. P = 25, Q = 200
D. P = 100, Q = 0

Correct Answer: A

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Question 21
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?
Correct A. 375
B. 425
C. 475
D. 525

Correct Answer: A

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Question 22
A government imposes a tax of ₦10 on every unit of a good. If the supply function is given by Q = 2P - 5, what is the new supply function after the tax?
Correct A. Q = 2P - 15
B. Q = 2P + 5
C. Q = 2P - 10
D. Q = 2P + 15

Correct Answer: A

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Question 23
A firm's revenue function is given by R(x) = 3x^2 - 2x + 10. If the firm produces 15 units, what is the marginal revenue?
Correct A. 88
B. 98
C. 108
D. 118

Correct Answer: A

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Question 24
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?
Correct A. Q = 100 - 2P - 40
B. Q = 100 - 2P + 20
C. Q = 100 - 2P - 10
D. Q = 100 - 2P + 10

Correct Answer: A

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Question 25
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?
Correct A. 510
B. 520
C. 530
D. 540

Correct Answer: A

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