POST UTME UNILAG 2019 Economics | Objective

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Question 1
A perfectly competitive market has 10 firms, each producing a homogeneous product. If the market demand curve is given by \( Q_d = 200 - 2P \) and the market supply curve is given by \( Q_s = 20 + P \), find the equilibrium price and quantity.
A. P = 60, Q = 80
B. P = 80, Q = 60
C. P = 70, Q = 70
D. P = 50, Q = 90
Question 2
A consumer's budget constraint is given by \( P_1x_1 + P_2x_2 = I \), where \( P_1 \) and \( P_2 \) are prices, \( x_1 \) and \( x_2 \) are quantities, and ( I ) is income. If prices are 10 and 20, quantities are 2 and 3, and income is 100, what is the consumer's budget balance?
A. ( 10(2) + 20(3) = 100 )
B. ( 10(2) + 20(3) = 1000 )
C. ( 10(2) + 20(3) = 10000 )
D. ( 10(2) + 20(3) = 100000 )
Question 3
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%
B. 10%
C. 15%
D. 20%
Question 4
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
C. ₦250,000
D. ₦300,000
Question 5
A firm's \cost function is given by ( C(q) = 10q^2 + 20q + 100 ). If the firm produces 10 units of output, what is the total \cost?
A. ( 10(10)^2 + 20(10) + 100 )
B. ( 10(10)^2 + 20(10) + 1000 )
C. ( 10(10)^2 + 20(10) + 10000 )
D. ( 10(10)^2 + 20(10) + 100000 )
Question 6
A firm's production function is given by \( Q = 2K^0.5L^0.5 \). If the firm's capital is 100 units and the firm's labor is 50 units, find the firm's output.
A. 50
B. 100
C. 200
D. 500
Question 7
A firm is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit produced. Process B requires an initial investment of ₦150,000 and has a variable \cost of ₦30 per unit produced. If the firm produces 10,000 units, what is the total \cost of production for each process?
A. Process A: ₦1,500,000; Process B: ₦1,300,000
B. Process A: ₦1,300,000; Process B: ₦1,500,000
C. Process A: ₦1,000,000; Process B: ₦1,200,000
D. Process A: ₦1,200,000; Process B: ₦1,000,000
Question 8
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
B. Q = 2
C. Q = 3
D. Q = 4
Question 9
A consumer's indifference curve is given by the equation ( u(x, y) = 2x + 3y ). If the consumer's income is ₦1200 and the prices of x and y are ₦4 and ₦6 respectively, find the consumer's optimal bundle of x and y.
A. x = 60, y = 40
B. x = 40, y = 60
C. x = 50, y = 50
D. x = 30, y = 70
Question 10
A consumer's indifference curve is given by \( U\( x_1, x_2 \ \) = x_1 + 2x_2 ). If the consumer's income is 100 and prices are 10 and 20, what is the consumer's optimal bundle?
A. ( (20, 30) )
B. ( (30, 20) )
C. ( (40, 10) )
D. ( (10, 40) )
Question 11
A firm's revenue function is given by ( R(q) = 20q - 10q^2 ). If the firm produces 5 units of output, what is the revenue?
A. ( 20(5) - 10(5)^2 )
B. ( 20(5) - 10(5)^2 + 100 )
C. ( 20(5) - 10(5)^2 - 100 )
D. ( 20(5) - 10(5)^2 + 1000 )
Question 12
The concept of scarcity in economics is closely related to the idea of opportunity \cost. Explain how the opportunity \cost of a choice is determined and provide an example of how it affects a firm's decision-making process.
A. Opportunity \cost is determined by the value of the next best alternative foregone.
B. Opportunity \cost is determined by the value of the next best alternative foregone, but only in the short run.
C. Opportunity \cost is determined by the value of the next best alternative foregone, but only in the long run.
D. Opportunity \cost is determined by the value of the next best alternative foregone, regardless of the time period.
Question 13
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
C. 40
D. 50
Question 14
The price elasticity of demand for a product is given by the equation E = -2P/Q. If the price of the product is ₦100 and the quantity demanded is 100 units, what is the price elasticity of demand?
A. -2
B. -1
C. 1
D. 2
Question 15
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%
C. 20%
D. 25%

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