POST UTME UNIOSUN 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's utility function is given by the equation U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦5 and ₦10 respectively, find the consumer's budget constraint.
A. ₦15
B. ₦20
C. ₦25
D. ₦30
Question 2
A central bank increases the money supply by 10%. What is the effect on the price level, assuming a cons\tant velocity of money?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A country's inflation rate is given by the equation \pi = \frac{M}{PY}. If the money supply (M) is 100, the price level (P) is 10, and the real GDP (Y) is 1000, what is the inflation rate?
A. 0.1
B. 0.2
C. 0.3
D. 0.4
Question 4
Consider a production function given by \( Q = 1000K^0.4L^0.6 \), where Q is output, K is capital and L is labor. If the price of capital is ₦1000 per unit and the price of labor is ₦500 per unit, calculate the value of the marginal product of capital (MPC) at a point where K = 10 units and L = 15 units.
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 5
The government of Nigeria has introduced a new policy to increase the production of a particular good. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the use of fertilizers. However, the policy also includes a provision to increase the price of the good by 20%. What is the likely effect of this policy on the production of the good?
A. The policy will lead to an increase in the production of the good and a decrease in the price of the good.
B. The policy will lead to a decrease in the production of the good and an increase in the price of the good.
C. The policy will have no effect on the production of the good and the price of the good.
D. The policy will lead to an increase in the production of the good and an increase in the price of the good.
Question 6
A firm's demand for a resource is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the resource is given by the equation Qs = 2P - 100, where Qs is the quantity supplied, find the elasticity of demand.
A. 1
B. 2
C. 3
D. 4
Question 7
A firm's marginal revenue product curve is downward-sloping. What does this imply about the firm's production techno\logy?
A. The firm's production techno\logy is characterized by increa\sing returns to scale.
B. The firm's production techno\logy is characterized by decrea\sing returns to scale.
C. The firm's production techno\logy is characterized by cons\tant returns to scale.
D. The firm's production techno\logy is characterized by increa\sing marginal \costs.
Question 8
A firm's production function is given by the equation Q = 2L + 3K, where Q is the quantity produced, L is labor, and K is capital. If the firm's labor is 10 and capital is 5, what is the quantity produced?
A. 25
B. 30
C. 35
D. 40
Question 9
A firm is producing a good with a cons\tant elasticity of demand. The demand function is given by Q = 100 - 2P. If the firm increases the price of the good by 10%, what is the percentage change in the quantity demanded?
A. -5%
B. -10%
C. -15%
D. -20%
Question 10
Consider a production function given by \( Q = 1000K^0.4L^0.6 \), where Q is output, K is capital and L is labor. If the price of capital is ₦1000 per unit and the price of labor is ₦500 per unit, calculate the value of the marginal product of labor (MPL) at a point where K = 10 units and L = 15 units.
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 11
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) increases by 20% and the price of capital (K) remains cons\tant, what is the new value of the total product of labor (TPL)?
A. 1000
B. 2000
C. 3000
D. 4000
Question 12
A monopolistically competitive firm faces a demand curve that is downward sloping but has a cons\tant elasticity of -2. If the firm's marginal revenue curve is given by MR = 2Q - 10, what is the firm's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 13
A government budget is given by the equation \( B = 1000 + 0.2Y \), where B is the budget and Y is the national income. If the national income is ₦10,000, what is the value of the budget?
A. ₦2000
B. ₦2200
C. ₦2400
D. ₦2600
Question 14
A country's balance of payments 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
B. ₦40 billion
C. ₦60 billion
D. ₦80 billion
Question 15
A monopolist faces a demand curve given by \( Q = 100 - 2P \) and a \cost function \( C = 20 + 5Q \). If the firm's profit-maximizing output is 40 units, what is the price at which it will sell?
A. ₦20
B. ₦40
C. ₦60
D. ₦80

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