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POST UTME UNILAG 2019 Economics | Objective

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Question 1

A firm faces a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P - 10. What is the equilibrium price and quantity?

A. ₦50, 60

Correct B. ₦30, 70

C. ₦20, 80

D. ₦10, 90

Correct Answer: B

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Question 2

A consumer has a utility function given by U = 2x + 3y. The prices of x and y are ₦5 and ₦3 respectively. What is the consumer's budget constraint?

Correct A. 2x + 3y = 15

B. 2x + 3y = 20

C. 2x + 3y = 25

D. 2x + 3y = 30

Correct Answer: A

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Question 3

A firm's production function is given by Q = 2L + 3K. The prices of labor and capital are ₦10 and ₦20 respectively. What is the firm's \cost function?

Correct A. C = 10L + 20K

B. C = 20L + 10K

C. C = 30L + 20K

D. C = 20L + 30K

Correct Answer: A

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Question 4

A consumer has a budget of ₦100 and faces prices of x and y of ₦5 and ₦3 respectively. What is the consumer's indifference curve?

Correct A. U = 2x + 3y

B. U = 3x + 2y

C. U = x + y

D. U = 2x + 2y

Correct Answer: A

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Question 5

A firm's demand curve is given by Q = 100 - 2P and the supply curve is given by Q = 2P - 10. What is the equilibrium price and quantity?

A. ₦50, 60

Correct B. ₦30, 70

C. ₦20, 80

D. ₦10, 90

Correct Answer: B

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Question 6

A perfectly competitive firm's supply curve is given by the equation Q = 100 - 2P. If the market price increases by 10%, what is the percentage change in the quantity supplied?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 7

A monopolist faces a demand curve given by P = 100 - Q. The monopolist's marginal \cost curve is given by MC = 20. What is the profit-maximizing quantity?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 8

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?

A. 10%

B. 15%

Correct C. 20%

D. 25%

Correct Answer: C

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Question 9

A firm's total revenue function is given by TR = 100Q - 2Q^2. If the firm's output is increased by 10%, what is the percentage change in total revenue?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 10

A firm's demand curve is given by P = 100 - Q. The firm's marginal \cost curve is given by MC = 20. What is the profit-maximizing price?

A. 80

B. 90

Correct C. 100

D. 110

Correct Answer: C

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Question 11

A firm operating in a perfectly competitive market produces a homogeneous product. If the firm's average total \cost (ATC) is given by the equation \( ATC = 10 + 2Q + \frac{1}{Q} \), where Q is the quantity produced, what is the firm's optimal output level?

A. Q = 1

Correct B. Q = 2

C. Q = 3

D. Q = 4

Correct Answer: B

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Question 12

A monopolist faces a demand curve given by \( P = 100 - 2Q \). If the firm's marginal \cost (MC) is given by the equation \( MC = 10 + Q \), what is the monopolist's optimal output level?

A. Q = 10

Correct B. Q = 20

C. Q = 30

D. Q = 40

Correct Answer: B

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Question 13

A firm is considering investing in a new project with the following cash flows: Year 1: -₦100, Year 2: ₦150, Year 3: ₦200. If the firm's discount rate is 10%, what is the present value of the project?

A. ₦100

B. ₦150

Correct C. ₦200

D. ₦250

Correct Answer: C

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Question 14

A firm is operating in a market with the following demand and supply curves: Demand: \( P = 100 - 2Q \), Supply: \( P = 20 + Q \). If the firm's marginal \cost (MC) is given by the equation \( MC = 10 + Q \), what is the equilibrium price and quantity?

A. P = 50, Q = 20

Correct B. P = 60, Q = 30

C. P = 70, Q = 40

D. P = 80, Q = 50

Correct Answer: B

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Question 15

A firm is considering investing in a new project with the following cash flows: Year 1: -₦100, Year 2: ₦150, Year 3: ₦200. If the firm's discount rate is 10%, what is the net present value (NPV) of the project?

A. ₦50

B. ₦100

Correct C. ₦150

D. ₦200

Correct Answer: C

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Question 16

Consider a consumer with a utility function U(x,y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦3 respectively, what is the optimal bundle of goods that maximizes the consumer's utility?

A. (x,y) = (100,0)

Correct B. (x,y) = (80,20)

C. (x,y) = (60,40)

D. (x,y) = (40,60)

Correct Answer: B

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Question 17

A firm produces two goods, A and B, u\sing two inputs, labor (L) and capital (K). The production functions for the two goods are given by Q_A = 2L + 3K and Q_B = 4L + 2K. If the firm has 10 units of labor and 8 units of capital, what is the optimal combination of labor and capital that maximizes the total output of the two goods?

A. (L,K) = (5,3)

Correct B. (L,K) = (4,4)

C. (L,K) = (3,5)

D. (L,K) = (2,6)

Correct Answer: B

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Question 18

Consider a market with two firms, A and B, producing a homogeneous good. Firm A has a demand function Q_A = 100 - 2P and a supply function Q_A = 20 + 3P. Firm B has a demand function Q_B = 120 - 4P and a supply function Q_B = 30 + 2P. What is the equilibrium price and quantity of the good in this market?

A. P = ₦20, Q = 50

Correct B. P = ₦30, Q = 70

C. P = ₦40, Q = 90

D. P = ₦50, Q = 110

Correct Answer: B

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Question 19

A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. What is the country's national income?

A. ₦130 billion

B. ₦140 billion

Correct C. ₦150 billion

D. ₦160 billion

Correct Answer: C

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Question 20

Consider a firm with a production function Q = 2L + 3K, where L is labor and K is capital. If the firm has 10 units of labor and 8 units of capital, what is the marginal product of labor?

A. 2

Correct B. 3

C. 4

D. 5

Correct Answer: B

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Question 21

The government of a country decides to implement a policy to reduce the budget deficit. The policy involves reducing government exp\enditure by 10% and increa\sing taxes by 5%. If the initial budget deficit is ₦100 billion, what will be the new budget deficit after the implementation of the policy?

A. ₦90 billion

Correct B. ₦95 billion

C. ₦105 billion

D. ₦110 billion

Correct Answer: B

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Question 22

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 10Q + 100. If the monopolist produces 20 units of the good, what is the profit-maximizing price?

A. ₦50

B. ₦60

Correct C. ₦70

D. ₦80

Correct Answer: C

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Question 23

A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, what is the country's GDP?

A. ₦1.5 trillion

B. ₦1.6 trillion

Correct C. ₦1.7 trillion

D. ₦1.8 trillion

Correct Answer: C

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Question 24

A country's balance of payments is given by the equation BOP = X - M + \( F - I \). If the country's exports are ₦500 billion, imports are ₦400 billion, foreign aid is ₦200 billion, and foreign investment is ₦100 billion, what is the country's balance of payments?

A. ₦100 billion

B. ₦200 billion

Correct C. ₦300 billion

D. ₦400 billion

Correct Answer: C

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Question 25

A government wants to implement a tax policy to reduce income inequality. The government decides to implement a progressive tax system with tax rates of 10%, 20%, and 30% for income levels of ₦0-₦100,000, ₦100,001-₦500,000, and ₦500,001 and above, respectively. If a person has an income of ₦750,000, how much tax will they pay?

A. ₦150,000

B. ₦200,000

Correct C. ₦250,000

D. ₦300,000

Correct Answer: C

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