POST UTME UNILORIN 2017 Economics | Objective

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Question 1
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
Correct A. (200, 100)
B. (100, 200)
C. (150, 150)
D. (250, 50)

Correct Answer: A

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Question 2
A firm's production function is given by \( Q = 2L^{1/2}K^{1/2} \). If the firm's output is 100 units and the price of labor is ₦10 per unit, what is the minimum \cost of production?
A. ₦500
Correct B. ₦1000
C. ₦2000
D. ₦5000

Correct Answer: B

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Question 3
A government budget is given by the equation \( B = T + I \), where B is the budget, T is the tax revenue, and I is the interest payment. If the tax revenue is ₦500 million and the interest payment is ₦200 million, what is the government's budget?
A. ₦700 million
Correct B. ₦800 million
C. ₦900 million
D. ₦1000 million

Correct Answer: B

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Question 4
A firm's demand function is given by \( Q = 100 - 2P \). If the price of the good is ₦20, what is the quantity demanded?
A. 50
Correct B. 60
C. 70
D. 80

Correct Answer: B

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Question 5
A consumer's utility function is given by ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
Correct A. (200, 100)
B. (100, 200)
C. (150, 150)
D. (250, 50)

Correct Answer: A

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Question 6
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 25 units of output, what is the total \cost of production?
Correct A. 375
B. 425
C. 475
D. 525

Correct Answer: A

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Question 7
A country's money supply is given by M = 1000 + 0.5Y. If the country's GDP is 100 billion naira, what is the money supply?
Correct A. 50,500,000,000
B. 50,500,000,000
C. 50,500,000,000
D. 50,500,000,000

Correct Answer: A

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Question 8
A consumer's budget constraint is given by P1x + P2y = I, where P1 and P2 are the prices of two goods, x and y are the quantities consumed, and I is the consumer's income. If the consumer's income is 1000 naira, and the prices of the two goods are 10 naira and 20 naira respectively, what is the consumer's budget line?
Correct A. 10x + 20y = 1000
B. 10x + 20y = 2000
C. 10x + 20y = 3000
D. 10x + 20y = 4000

Correct Answer: A

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Question 9
A country's balance of payments is given by BOP = X - M, where X is the country's exports and M is its imports. If the country's exports are 100 billion naira and its imports are 80 billion naira, what is the country's balance of payments?
Correct A. 20,000,000,000
B. 20,000,000,000
C. 20,000,000,000
D. 20,000,000,000

Correct Answer: A

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Question 10
A firm's revenue function is given by R(x) = 50x - 0.5x^2. If the firm produces 20 units of output, what is the total revenue?
Correct A. 900
B. 950
C. 1000
D. 1050

Correct Answer: A

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Question 11
A firm is operating at a point on its production function where the marginal product of labor is 4 units and the marginal product of capital is 6 units. If the firm's current input prices are $8 per unit of labor and $12 per unit of capital, what is the optimal input combination?
Correct A. Increase labor and decrease capital
B. Increase capital and decrease labor
C. Increase both labor and capital
D. Decrease both labor and capital

Correct Answer: A

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Question 12
A government is considering a tax on a particular good. The supply curve of the good is given by Q = 2P + 5, and the demand curve is given by Q = 100 - 2P. If the government imposes a tax of $5 per unit, what is the new equilibrium price?
A. New equilibrium price is $10
Correct B. New equilibrium price is $15
C. New equilibrium price is $20
D. New equilibrium price is $25

Correct Answer: B

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Question 13
A firm is considering two different production techno\logies. The first techno\logy has a fixed \cost of $100, a variable \cost of $10 per unit, and a revenue function of $20 per unit. The second techno\logy has a fixed \cost of $200, a variable \cost of $15 per unit, and a revenue function of $25 per unit. Which techno\logy should the firm choose if it expects to produce 100 units?
Correct A. First techno\logy
B. Second techno\logy
C. Both techno\logies are equally profitable
D. Neither techno\logy is profitable

Correct Answer: A

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Question 14
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $30 billion. What is the country's net foreign income?
A. $10 billion
Correct B. $20 billion
C. $30 billion
D. $40 billion

Correct Answer: B

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Question 15
A central bank is considering a monetary policy to reduce inflation. The current inflation rate is 5%, and the central bank wants to reduce it to 3%. If the money supply is currently $100 billion, what is the new money supply needed to achieve the desired inflation rate?
A. $80 billion
Correct B. $90 billion
C. $100 billion
D. $110 billion

Correct Answer: B

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Question 16
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%?
Correct A. 20%
B. 30%
C. 40%
D. 50%

Correct Answer: A

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Question 17
A firm produces two goods, X and Y. The production function for X is given by Qx = 2L + 3K, where L is labor and K is capital. The production function for Y is given by Qy = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the total output?
A. 30
B. 40
Correct C. 50
D. 60

Correct Answer: C

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Question 18
A monopolist faces a demand curve given by P = 100 - Q. The marginal revenue (MR) function is given by MR = 100 - 2Q. If the firm produces 20 units, what is the price?
A. 80
B. 90
Correct C. 100
D. 110

Correct Answer: C

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Question 19
A firm has a \cost function given by C = 100 + 2Q + 0.5Q^2. If the firm produces 20 units, what is the total \cost?
A. 150
B. 200
Correct C. 250
D. 300

Correct Answer: C

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Question 20
A firm has a revenue function given by R = 100Q - 2Q^2. If the firm produces 20 units, what is the total revenue?
A. 1500
B. 2000
Correct C. 2500
D. 3000

Correct Answer: C

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Question 21
A firm operating in a perfectly competitive market is characterized by which of the following?
A. A \single price maker
Correct B. Many buyers and sellers
C. A price setter
D. A monopolist

Correct Answer: B

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Question 22
The concept of diminishing marginal utility is related to which of the following?
A. Law of demand
B. Law of supply
Correct C. Diminishing marginal utility
D. Increa\sing marginal utility

Correct Answer: C

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Question 23
A country's balance of payments is affected by which of the following?
A. Export of goods and services
B. Import of goods and services
C. Foreign investment
Correct D. All of the above

Correct Answer: D

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Question 24
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. What is the marginal \cost function?
Correct A. 4x + 10
B. 2x^2 + 10x + 5
C. x^2 + 10x + 5
D. 2x + 10

Correct Answer: A

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Question 25
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. What is the marginal utility of x?
Correct A. 2
B. 3
C. 4
D. 5

Correct Answer: A

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