POST UTME UNILORIN 2018 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. 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%
Question 2
A consumer has a utility function U(x, y) = 2x + 3y. The prices of x and y are ₦5 and ₦10 respectively. Find the consumer's indifference curve.
A. U(x, y) = 20
B. U(x, y) = 30
C. U(x, y) = 40
D. U(x, y) = 50
Question 3
A firm is considering two production methods. Method A requires an initial investment of ₦100 million but generates a higher profit. Method B requires no initial investment but generates a lower profit. What is the opportunity \cost of choo\sing Method A over Method B?
A. The initial investment of ₦100 million
B. The higher profit of Method A
C. The lower profit of Method B
D. The opportunity \cost of choo\sing Method A
Question 4
A country's GDP is ₦1,000,000,000. Its imports are ₦200,000,000 and its exports are ₦300,000,000. What is its balance of trade?
A. ₦100,000,000 surplus
B. ₦100,000,000 deficit
C. ₦0 surplus
D. ₦0 deficit
Question 5
A firm is producing a good with a production function Q = 2L^0.4K^0.6. If the price of labor increases by 20% and the price of capital remains cons\tant, what will be the effect on the firm's output?
A. The firm's output will increase by 10%.
B. The firm's output will decrease by 10%.
C. The firm's output will remain the same.
D. The effect on the firm's output is uncertain.
Question 6
A consumer's utility function is given by \( U = 2x + 3y \), where ( x ) and ( y ) are the quantities of two goods. If the prices of the two goods are ( ₦50 ) and ( ₦75 ) respectively, find the optimal bundle of goods that maximizes the consumer's utility.
A. \( x = 10, y = 5 \)
B. \( x = 5, y = 10 \)
C. \( x = 15, y = 3 \)
D. \( x = 20, y = 2 \)
Question 7
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied. Find the equilibrium price and quantity.
A. ₦50, 150 units
B. ₦75, 100 units
C. ₦25, 200 units
D. ₦100, 50 units
Question 8
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%
Question 9
A consumer has a utility function U(x, y) = 2x + 3y. The prices of x and y are ₦5 and ₦10 respectively. Find the consumer's budget constraint.
A. 2x + 3y = ₦50
B. 2x + 3y = ₦100
C. 2x + 3y = ₦200
D. 2x + 3y = ₦300
Question 10
A consumer's budget constraint is given by \( 50x + 75y = 1000 \), where ( x ) and ( y ) are the quantities of two goods. If the consumer's utility function is \( U = 2x + 3y \), find the optimal bundle of goods that maximizes the consumer's utility.
A. \( x = 10, y = 5 \)
B. \( x = 5, y = 10 \)
C. \( x = 15, y = 3 \)
D. \( x = 20, y = 2 \)
Question 11
Consider a country that imports 100 units of a commodity at a price of ₦50 per unit. If the exchange rate is 1 USD = 200 NGN, find the value of the import in USD.
A. $0.50
B. $1.00
C. $2.00
D. $5.00
Question 12
A central bank increases the reserve requirement for commercial banks. What will be the effect on the money supply?
A. The money supply will increase.
B. The money supply will decrease.
C. The money supply will remain the same.
D. The effect on the money supply is uncertain.
Question 13
A country's government imposes a tax on a particular good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity of the good?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases
Question 14
A firm is considering two investment projects. Project A has a higher expected return but also a higher risk. Project B has a lower expected return but also a lower risk. What is the opportunity \cost of choo\sing Project A over Project B?
A. The expected return of Project B
B. The risk of Project A
C. The expected return of Project A
D. The risk of Project B
Question 15
The government of a country decides to implement a policy of price control to reduce inflation. However, the policy leads to a shortage of essential goods. What is the opportunity \cost of this policy?
A. The reduction in the supply of essential goods
B. The increase in the demand for essential goods
C. The decrease in the production of essential goods
D. The increase in the price of essential goods

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