POST UTME UNILAG 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases its labor input from 4 to 9 units and holds capital cons\tant at 16 units, what will be the percentage change in output?
A. The output will increase by 25%.
B. The output will increase by 50%.
C. The output will increase by 100%.
D. The output will decrease by 25%.
Question 2
A firm is operating in a perfectly competitive market with a demand curve given by P = 100 - 2Q. If the firm's current output is Q = 20, what is the firm's marginal revenue (MR) at this output level?
A. 40
B. 50
C. 60
D. 70
Question 3
A firm's production function is given by Q = 2L^2 + 3K, where Q is output, L is labor, and K is capital. If the firm's marginal product of labor (MPL) is given by MPL = 4L, what is the firm's average product of labor (APL) when L = 4 and K = 5?
A. 8
B. 12
C. 16
D. 20
Question 4
A government imposes a tax of $10 on a firm's output. If the firm's supply curve is given by Q = 100 - 2P and the demand curve is given by Q = 200 - 5P, what is the new equilibrium price and quantity?
A. Price: $20, Quantity: 50
B. Price: $30, Quantity: 70
C. Price: $40, Quantity: 90
D. Price: $50, Quantity: 110
Question 5
Consider a country that imports 60% of its coffee and exports 40% of its coffee. If the price of coffee in the international market increases by 15%, and the country's terms of trade improve, what is the impact on the country's balance of payments?
A. The country's balance of payments will worsen.
B. The country's balance of payments will improve.
C. The country's balance of payments will remain unchanged.
D. The country's balance of payments will worsen due to the increase in coffee prices.
Question 6
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the price of good x is ₦2, what is the optimal quantity of good x?
A. 6
B. 8
C. 10
D. 12
Question 7
A central bank uses the money multiplier to increase the money supply in an economy. If the reserve requirement is 20% and the money multiplier is 5, what is the new money supply?
A. ₦1000
B. ₦5000
C. ₦10000
D. ₦50000
Question 8
A firm's demand for a product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price of the product increases by 20%, what is the new quantity demanded?
A. 60
B. 80
C. 100
D. 120
Question 9
A government imposes a tax of ₦10 on a good. If the pre-tax price of the good is ₦20, and the demand curve is given by Q = 100 - 2P, what is the new equilibrium price?
A. ₦30
B. ₦35
C. ₦40
D. ₦45
Question 10
A consumer's utility function is given by U = x^2y^2. If the consumer's income is ₦1000 and the prices of x and y are ₦10 and ₦20 respectively, what is the consumer's optimal bundle of x and y?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 20, y = 2
D. x = 2, y = 20
Question 11
A government imposes a tax of $10 on a firm's output. If the firm's supply curve is given by Q = 100 - 2P and the demand curve is given by Q = 200 - 5P, what is the new equilibrium price and quantity?
A. Price: $20, Quantity: 50
B. Price: $30, Quantity: 70
C. Price: $40, Quantity: 90
D. Price: $50, Quantity: 110
Question 12
A firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10 + 2Q, what is the profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 13
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the price of good x is ₦2, what is the optimal quantity of good y?
A. 4
B. 6
C. 8
D. 10
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5 per unit of labor, what is the optimal level of capital to employ?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 15
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 12, and the price of good x is 2, what is the consumer's optimal bundle of goods?
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 6, y = 0
D. x = 0, y = 6

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: