POST UTME UNILAG 2021 Economics | Objective

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Question 1
A firm produces two goods, x and y, u\sing two inputs, labor (L) and capital (K). The production function is given by \( x = 2L^{0.5}K^{0.5} \) and \( y = 3L^{0.5}K^{0.5} \). If the firm has 100 units of labor and 50 units of capital, find the total output of the firm.
A. 200
B. 300
C. 400
D. 500
Question 2
A firm's production function is given by Q = 100K^0.5L^0.5, where Q is output, K is capital, and L is labor. If the firm increases its capital from 100 to 121, and labor from 100 to 121, what will be the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 3
A consumer's budget constraint is given by 2x + 3y = 12, where x and y are the quantities of two goods consumed. Find the consumer's optimal bundle of goods.
A. x = 3, y = 0
B. x = 0, y = 4
C. x = 2, y = 2
D. x = 4, y = 0
Question 4
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production function for good X is given by Q_X = 2L^0.5K^0.5. The production function for good Y is given by Q_Y = 3L^0.75K^0.25. If the firm has 100 units of labor and 50 units of capital, what is the total output of the firm?
A. 100
B. 150
C. 200
D. 250
Question 5
A government imposes a tax on a firm's profits. The tax rate is 20% of the profits. If the firm's profits are ₦1,000,000, what is the amount of tax paid?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 6
The government of Nigeria has set a target of increa\sing the country's GDP from ₦50 trillion to ₦75 trillion within the next 5 years. If the current GDP growth rate is 5% per annum, what is the required annual growth rate to achieve the target?
A. 7%
B. 8%
C. 9%
D. 10%
Question 7
A firm's \cost function is given by C(x) = 10x^2 + 20x + 15, where x is the number of units produced. Find the marginal \cost function.
A. 20x + 20
B. 10x^2 + 20x
C. 10x^2 + 20x + 15
D. 20x^2 + 20x
Question 8
A consumer's utility function is given by U(x, y) = 2x^2 + 3y^2, where x and y are the quantities of two goods consumed. Find the marginal utility of good y.
A. 6y
B. 2x
C. 4x
D. 3x
Question 9
A country's inflation rate is given by the equation \frac{\Delta P}{P} = 0.05, where \Delta P is the change in price and P is the current price. If the current price is 100, what is the new price after one year?
A. 105
B. 110
C. 115
D. 120
Question 10
The concept of elasticity of demand is crucial in unders\tanding the responsiveness of consumers to changes in prices. Which of the following statements best describes the law of demand?
A. As the price of a commodity increases, the quantity demanded decreases.
B. As the price of a commodity decreases, the quantity demanded increases.
C. The law of demand states that the quantity demanded of a commodity is inversely related to its price.
D. The law of demand is a graphical representation of the relationship between price and quantity demanded.
Question 11
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 50 - 2Q. If the firm is currently producing 20 units, what is the price elasticity of demand?
A. 1
B. 2
C. 3
D. 4
Question 12
A firm has a \cost function given by \( C = 2x^2 + 3y^2 \) and a revenue function given by \( R = 4x^2 + 5y^2 \). Find the profit function of the firm.
A. \( P = x^2 + 2y^2 \)
B. \( P = 2x^2 + y^2 \)
C. \( P = x^2 + 3y^2 \)
D. \( P = 3x^2 + 2y^2 \)
Question 13
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 14
The following diagram shows the production possibilities frontier (PPF) of a country.
A. The country is experiencing economic growth.
B. The country is experiencing economic decline.
C. The country is experiencing stagflation.
D. The country is experiencing hyperinflation.
Question 15
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue (MR) function is given by MR = 2Q. If the firm produces 20 units of output, what is the price of the product?
A. 40
B. 50
C. 60
D. 70

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