POST UTME UNILORIN 2024 Economics | Objective

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Question 1
A firm's demand curve is given by Q = 100 - 2P, and the supply curve is given by Q = 2P - 100. Find the equilibrium price and quantity.
A. ₦50, 150
Correct B. ₦75, 125
C. ₦100, 100
D. ₦125, 75

Correct Answer: B

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Question 2
A country's GDP is ₦1,000,000,000,000, and its GNP is ₦1,100,000,000,000. What is the net factor income from abroad?
Correct A. ₦100,000,000,000
B. ₦200,000,000,000
C. ₦300,000,000,000
D. ₦400,000,000,000

Correct Answer: A

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Question 3
A firm's total revenue is given by TR = 100P - 0.5P^2, and its total \cost is given by TC = 50 + 20P. Find the profit-maximizing price and quantity.
A. ₦50, 100
B. ₦75, 125
Correct C. ₦100, 150
D. ₦125, 175

Correct Answer: C

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Question 4
A monopolist's demand curve is given by Q = 100 - 2P, and its marginal revenue curve is given by MR = 100 - 2P. Find the price and quantity at which the monopolist maximizes profit.
A. ₦50, 150
Correct B. ₦75, 125
C. ₦100, 100
D. ₦125, 75

Correct Answer: B

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Question 5
A firm's demand curve is given by Q = 100 - 2P, and its supply curve is given by Q = 2P - 100. Find the elasticity of demand at a price of ₦75.
Correct A. 0.5
B. 1
C. 2
D. 3

Correct Answer: A

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Question 6
The demand for a commodity 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 0.5, find the percentage change in quantity demanded when the price increases by 10%.
Correct A. 5%
B. 10%
C. 15%
D. 20%

Correct Answer: A

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Question 7
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by QX = 2L^0.5K^0.5, where QX is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. If the firm wants to produce 100 units of good X, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, find the optimal combination of labor and capital that minimizes the \cost of production.
A. L = 100, K = 100
Correct B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 50

Correct Answer: B

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Question 8
The government of a country imposes a tariff of 20% on imported goods. If the price of the imported good is ₦100 per unit, and the demand for the good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price, find the new equilibrium price and quantity after the tariff is imposed.
Correct A. P = ₦120, Qd = 80
B. P = ₦100, Qd = 100
C. P = ₦80, Qd = 120
D. P = ₦60, Qd = 140

Correct Answer: A

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Question 9
A country's balance of payments (BOP) is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, find the balance of payments.
A. ₦20 billion surplus
Correct B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit

Correct Answer: B

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Question 10
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm wants to produce 100 units of the good, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, find the optimal combination of labor and capital that minimizes the \cost of production.
A. L = 100, K = 100
Correct B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 50

Correct Answer: B

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Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C = 50 + 5Q. What is the profit-maximizing price and quantity?
A. P = 40, Q = 30
Correct B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15

Correct Answer: B

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Question 12
A firm is faced with a production function F(L, K) = 10L^0.4K^0.6. If the price of labor is ₦50 per hour and the price of capital is ₦100 per hour, what is the optimal input combination?
Correct A. L = 10, K = 5
B. L = 5, K = 10
C. L = 15, K = 3
D. L = 20, K = 2

Correct Answer: A

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Question 13
A consumer has an indifference curve given by U = 2x + 3y and a budget constraint given by 2x + 3y = 30. What is the optimal consumption bundle?
Correct A. x = 5, y = 5
B. x = 10, y = 0
C. x = 0, y = 10
D. x = 15, y = -5

Correct Answer: A

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Question 14
A central bank uses a monetary policy tool to increase the money supply by 10%. What is the expected effect on the price level?
A. Price level increases by 5%
Correct B. Price level increases by 10%
C. Price level remains unchanged
D. Price level decreases by 5%

Correct Answer: B

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Question 15
A firm is faced with a production function F(L, K) = 10L^0.4K^0.6. If the price of labor is ₦50 per hour and the price of capital is ₦100 per hour, what is the optimal input combination?
Correct A. L = 10, K = 5
B. L = 5, K = 10
C. L = 15, K = 3
D. L = 20, K = 2

Correct Answer: A

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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 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
Correct A. 5%
B. 10%
C. 15%
D. 20%

Correct Answer: A

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Question 17
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 4L + 5K. If the firm has 10 units of labor and 15 units of capital, what is the total output of the firm?
A. 50
B. 60
Correct C. 70
D. 80

Correct Answer: C

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Question 18
A country has a GDP of ₦10 trillion and a population of 200 million. If the GDP per capita is ₦50,000, what is the percentage change in GDP per capita when the population increases by 10%?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 19
A firm is considering two investment projects, A and B. Project A has a net present value (NPV) of ₦1 million and a payback period of 5 years. Project B has an NPV of ₦2 million and a payback period of 3 years. Which project should the firm choose?
A. Project A
Correct B. Project B
C. Both projects are equally good
D. Neither project is good

Correct Answer: B

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Question 20
A country has a trade deficit of ₦5 trillion and a GDP of ₦15 trillion. If the trade deficit is financed by foreign borrowing, what is the percentage change in the country's debt-to-GDP ratio when the trade deficit increases by 20%?
A. 5%
B. 10%
Correct C. 15%
D. 20%

Correct Answer: C

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Question 21
A perfectly competitive firm's supply curve is upward-sloping because of the law of increa\sing
Correct A. diminishing returns
B. increa\sing \costs
C. decrea\sing marginal revenue
D. cons\tant returns to scale

Correct Answer: A

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Question 22
A country's balance of payments is in equilibrium when the current account is equal to the capital account
Correct A. true
B. false
C. only when the exchange rate is fixed
D. only when the exchange rate is floating

Correct Answer: A

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Question 23
A monopolistically competitive firm's demand curve is downward-sloping because of the law of decrea\sing
Correct A. marginal revenue
B. marginal \cost
C. elasticity of demand
D. elasticity of supply

Correct Answer: A

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Question 24
A country's trade balance is the difference between its exports and imports of goods and services
Correct A. true
B. false
C. only when the exchange rate is fixed
D. only when the exchange rate is floating

Correct Answer: A

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Question 25
A firm's production function is characterized by increa\sing returns to scale when the marginal product of labor is
Correct A. greater than the average product of labor
B. less than the average product of labor
C. equal to the average product of labor
D. not related to the average product of labor

Correct Answer: A

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