POST UTME UNIOSUN 2023 Economics | Objective

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Question 1
A monopolistically competitive firm is operating in a market with a cons\tant elasticity of demand. If the firm experiences a 5% increase in production \costs, what is the likely effect on the firm's price?
A. The price will increase by 5%
B. The price will increase by 10%
C. The price will remain unchanged
D. The price will decrease by 5%
Question 2
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 is increased by 10%, what will be the new quantity demanded?
A. 90
B. 80
C. 70
D. 60
Question 3
The supply function of a firm is given by Qs = 2P - 10, where Qs is the quantity supplied and P is the price. If the price is increased by 20%, what will be the new quantity supplied?
A. 10
B. 20
C. 30
D. 40
Question 4
Consider a production function given by \( Q = 100K^{\frac{1}{3}}L^{\frac{2}{3}} \), where Q is the output, K is the capital, and L is the labor. If the marginal product of labor (MPL) is 20, and the marginal product of capital (MPK) is 15, what is the value of the output elasticity of labor \( E_L \)?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 5
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. Calculate the country's balance of trade.
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 6
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. ₦150, 50
B. ₦120, 60
C. ₦180, 40
D. ₦200, 30
Question 7
A country's balance of payments is in equilibrium. If the country experiences a 10% increase in exports, and the exchange rate remains cons\tant, what is the likely effect on the country's balance of payments?
A. The current account will improve
B. The current account will worsen
C. The capital account will improve
D. The balance of payments will remain unchanged
Question 8
A government imposes a tax of ₦10 on a good. If the price of the good is ₦20 and the quantity demanded is 50, what will be the new quantity demanded?
A. 40
B. 30
C. 20
D. 10
Question 9
A consumer's utility function is given by U = 2x + 3y, where U is the utility and x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what will be the consumer's optimal bundle?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 10
A firm has a production function given by \( Q = 100K^{\frac{1}{2}}L^{\frac{1}{2}} \). If the marginal product of labor (MPL) is 10, and the marginal product of capital (MPK) is 15, what is the value of the output elasticity of labor \( E_L \)?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 11
A consumer's utility function is given by U(x,y) = 2x + 3y. The budget constraint is given by 2x + 3y = 12. Find the consumer's optimal bundle of x and y.
A. (2,4)
B. (4,2)
C. (3,3)
D. (1,5)
Question 12
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it currently uses 4 units of labor and 9 units of capital, calculate the firm's current total \cost. Assume that the firm's production function exhibits cons\tant returns to scale.
A. ₦480
B. ₦540
C. ₦600
D. ₦720
Question 13
A firm is operating on the long-run average \cost curve. If the firm experiences a 20% increase in output, and the long-run average \cost curve shifts to the right, what is the likely effect on the firm's long-run average \cost?
A. The long-run average \cost will decrease
B. The long-run average \cost will increase
C. The long-run average \cost will remain unchanged
D. The long-run average \cost will decrease, but at a decrea\sing rate
Question 14
A central bank is u\sing monetary policy to stabilize the economy. If the central bank increases the reserve requirement for commercial banks, what is the likely effect on the money supply?
A. The money supply will increase
B. The money supply will decrease
C. The money supply will remain unchanged
D. The money supply will increase, but at a decrea\sing rate
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the labor increases by 20% and the capital remains cons\tant, what will be the new output?
A. 4
B. 5
C. 6
D. 7

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