POST UTME UNILAG 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is operating under a monopoly market structure. If the firm's demand curve is given by Q = 100 - 2P and the firm's marginal revenue is 50, what is the firm's marginal \cost?
A. 25
B. 30
C. 35
D. 40
Question 2
A firm is producing a good with a cons\tant elasticity of demand (ED) of -2. If the firm increases its price by 10%, what will happen to its revenue?
A. Revenue will increase by 20%
B. Revenue will decrease by 20%
C. Revenue will increase by 10%
D. Revenue will decrease by 10%
Question 3
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is its balance of trade?
A. ₦10 billion surplus
B. ₦20 billion deficit
C. ₦30 billion surplus
D. ₦40 billion deficit
Question 4
A firm's revenue function is given by R(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm produces 5 units, what is its revenue?
A. ₦75
B. ₦85
C. ₦95
D. ₦105
Question 5
The government of Nigeria has implemented policies to promote agricultural development in the country. Which of the following is a likely outcome of these policies?
A. Increased food production and reduced poverty
B. Improved infrastructure and increased foreign investment
C. Increased government revenue and reduced unemployment
D. Increased inequality and reduced economic growth
Question 6
The government of a country decides to implement a policy of price control to combat inflation. However, the policy leads to a shortage of essential goods. Which of the following is a likely consequence of this policy?
A. Increased demand for essential goods
B. Reduced production of essential goods
C. Increased supply of essential goods
D. Decreased inflation rate
Question 7
A firm is considering investing in a new project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦75,000, Year 3: ₦100,000. If the firm's \cost of capital is 10%, what is the present value of the project?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 8
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production function for good A is given by Q_A = 2L^0.5K^0.5, where Q_A is the quantity of good A produced, L is the amount of labor used, and K is the amount of capital used. The production function for good B is given by Q_B = 3L^0.2K^0.8. If the firm has 100 units of labor and 200 units of capital, how much of good A should it produce?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 9
Consider a firm that produces a \single good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦150, and it currently employs 4 units of labor and 9 units of capital, calculate the firm's current total \cost.
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,100
Question 10
A government is considering a tax on a particular good to raise revenue. The demand function for the good is given by Q = 100 - 2P, and the supply function is given by Q = 2P - 10. If the government wants to raise revenue of ₦10,000,000, what is the optimal tax rate?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A consumer's indifference curve is represented by the equation u(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 10
B. x = 15, y = 5
C. x = 20, y = 0
D. x = 0, y = 20
Question 12
A firm is operating under a perfectly competitive market structure. If the firm's marginal revenue is 100 and the price of the product is 120, what is the firm's marginal \cost?
A. 80
B. 90
C. 100
D. 110
Question 13
Consider a firm that produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by Qx = 2L^0.5K^0.5 and Qy = 3L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦150, and it currently employs 4 units of labor and 9 units of capital, calculate the firm's current total \cost.
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,100
Question 14
A country's balance of payments is given by the following accounts: Current Account: ₦100,000,000; Capital Account: ₦50,000,000; Financial Account: ₦20,000,000. What is the country's net foreign exchange earnings?
A. ₦70,000,000
B. ₦80,000,000
C. ₦90,000,000
D. ₦100,000,000
Question 15
A country's balance of payments can be affected by the following factors: (i) a decrease in the price of its exports, (ii) an increase in the price of its imports, (iii) a decrease in the price of its imports, and (iv) an increase in the price of its exports. Which of the following would lead to an improvement in the balance of payments?
A. (i) and (ii)
B. (i) and (iii)
C. (ii) and (iv)
D. (iii) and (iv)

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: