POST UTME UNILAG 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a budget of ₦1000 and faces the following prices for two goods: good X \costs ₦200 and good Y \costs ₦300. If the consumer's utility function is given by U = 2X + 3Y, what is the consumer's optimal bundle of goods X and Y?
A. X = 2, Y = 1
B. X = 1, Y = 2
C. X = 3, Y = 0
D. X = 0, Y = 3
Question 2
A government wants to reduce income inequality by implementing a progressive tax system. If the government imposes a tax rate of 20% on income between ₦100,000 and ₦200,000, and a tax rate of 30% on income above ₦200,000, what is the opportunity \cost of the government's tax policy?
A. The reduction in government revenue
B. The increase in tax evasion
C. The distortion in labor supply
D. The reduction in economic growth
Question 3
A government budget is given by the equation \( B = T + G \), where B is the budget deficit, T is the tax revenue, and G is the government exp\enditure. If the tax revenue is ₦50 billion and the government exp\enditure is ₦60 billion, what is the budget deficit?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 4
A country's balance of payments (BOP) is given by the following equation: BOP = X - M, where X is exports and M is imports. If the country's exports are $100 million and imports are $80 million, what is the balance of payments?
A. $20 million
B. $30 million
C. $40 million
D. $50 million
Question 5
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's current labor and capital inputs are L = 4 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the given input levels?
A. 1
B. 2
C. 3
D. 4
Question 6
Consider a firm operating under a perfectly competitive market structure. If the firm's average \cost curve intersects the demand curve at point E, where the price is ₦100 and the quantity supplied is 100 units, and the firm's average \cost is ₦120, what is the firm's profit per unit?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, what is the required number of machines (K)?
A. 2
B. 4
C. 8
D. 16
Question 8
A firm's production function is given by the equation \( Q = 2L + 3K \), where Q is the output, L is the labor, and K is the capital. If the firm hires 10 units of labor and 5 units of capital, what is the output?
A. 20
B. 30
C. 40
D. 50
Question 9
Consider a monetary policy where the central bank increases the reserve requirement from 10% to 15%. What is the effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 10
The demand for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by Qs = 2P - 100. What is the equilibrium price and quantity?
A. P = 50, Q = 50
B. P = 75, Q = 75
C. P = 100, Q = 100
D. P = 125, Q = 125
Question 11
A firm faces a downward-sloping demand curve, and its marginal revenue (MR) curve intersects the marginal \cost (MC) curve at point E. If the firm produces at this level of output, what is the opportunity \cost of producing one more unit of output?
A. The price elasticity of demand
B. The slope of the demand curve
C. The difference between MR and MC
D. The firm's total revenue
Question 12
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm's current labor and capital inputs are L = 5 and K = 10, respectively, what is the total \cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 13
A monopolist faces a demand curve with a price elasticity of -2. If the firm's marginal revenue (MR) curve is twice its marginal \cost (MC) curve, what is the firm's profit-maximizing level of output?
A. The point where MR = MC
B. The point where P = MC
C. The point where MR = 2MC
D. The point where P = 2MC
Question 14
A firm produces two goods, A and B. The production function for good A is given by Q_A = 2L + 3K, where L is labor and K is capital. The production function for good B is given by Q_B = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, how many units of good A and good B will the firm produce?
A. Q_A = 25, Q_B = 20
B. Q_A = 20, Q_B = 25
C. Q_A = 15, Q_B = 30
D. Q_A = 30, Q_B = 15
Question 15
A consumer has a utility function U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 100, and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (x,y) = (10,0)
B. (x,y) = (5,5)
C. (x,y) = (0,10)
D. (x,y) = (20,0)

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