POST UTME UNILORIN 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Q = 100 - 2P, where Q is quantity and P is price. The monopolist's marginal \cost is given by MC = 5 + 2Q. What is the monopolist's optimal price and quantity?
A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 4 and K = 9, what is the marginal product of labor (MPL) at these input levels?
A. 1
B. 2
C. 3
D. 4
Question 3
The demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. The supply function is given by Q = 2P - 10. Find the equilibrium price and quantity.
A. P = 20, Q = 30
B. P = 30, Q = 20
C. P = 40, Q = 10
D. P = 10, Q = 40
Question 4
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is $20, what is the firm's current quantity demanded?
A. 80
B. 90
C. 70
D. 60
Question 5
A firm faces a production function given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital and L is labor. If the firm's objective is to maximize profits, and the price of output is P = 10, the price of capital is w_K = 2, and the price of labor is w_L = 3, what is the optimal level of capital and labor?
A. K = 100, L = 100
B. K = 200, L = 50
C. K = 50, L = 200
D. K = 100, L = 50
Question 6
A country's GNP is calculated as the sum of its GDP plus income earned by its citizens from abroad. If a country's GDP is ₦100 billion and its citizens earn ₦20 billion from abroad, what is its GNP?
A. ₦120 billion
B. ₦100 billion
C. ₦80 billion
D. ₦60 billion
Question 7
A country's balance of payments (BOP) is given by the following equation: BOP = X - M + \( F - I \). If the country's current account balance is $100 billion, its capital account balance is $50 billion, and its financial account balance is -$200 billion, what is the country's overall BOP balance?
A. 100
B. 50
C. -200
D. -150
Question 8
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor and K is capital. If the firm wants to increase output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
A firm's budget constraint is given by \( 10Y + 5X = 100 \), where Y is output and X is input. If the firm increases output by 20%, what is the percentage change in input?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
Consider a production function given by \( Q = 100K^{\frac{1}{3}}L^{\frac{2}{3}} \), where Q is output, K is capital, and L is labor. Determine the returns to scale of this production function.
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale
Question 11
A central bank uses the following monetary policy tool to control inflation: increa\sing the reserve requirement for commercial banks. What is the effect of this policy on the money supply?
A. Increases the money supply
B. Decreases the money supply
C. Has no effect on the money supply
D. Increases the velocity of money
Question 12
A firm faces a production function given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital and L is labor. If the firm's objective is to maximize profits, and the price of output is P = 10, the price of capital is w_K = 2, and the price of labor is w_L = 3, what is the optimal level of capital and labor?
A. K = 100, L = 100
B. K = 200, L = 50
C. K = 50, L = 200
D. K = 100, L = 50
Question 13
A firm operating in a perfectly competitive market is characterized by which of the following?
A. A \single price maker
B. Many buyers and sellers
C. A price setter
D. A monopolist
Question 14
A government plans to reduce poverty by increa\sing the minimum wage. However, this increase may lead to higher production \costs for firms, which could result in higher prices for consumers. U\sing the concept of opportunity \cost, explain why the government's plan may not be effective in reducing poverty.
A. The increase in minimum wage will lead to higher production \costs, which will be passed on to consumers in the form of higher prices, thereby reducing the purcha\sing power of the poor.
B. The government's plan will lead to a decrease in the opportunity \cost of labor, cau\sing firms to hire more workers and reduce unemployment.
C. The increase in minimum wage will lead to a decrease in the opportunity \cost of leisure, cau\sing people to work less and enjoy more leisure time.
D. The government's plan will lead to a decrease in the opportunity \cost of education, cau\sing people to invest more in education and reduce poverty.
Question 15
A firm's revenue function is given by R(q) = 10q^2 - 20q + 10. If the firm produces 5 units of output, what is its revenue?
A. ₦150
B. ₦200
C. ₦250
D. ₦300

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