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POST UTME UNIOSUN 2023 Economics | Objective

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Question 1

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

Correct B. ₦120, 60

C. ₦180, 40

D. ₦200, 30

Correct Answer: B

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Question 2

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.

Correct A. (2,4)

B. (4,2)

C. (3,3)

D. (1,5)

Correct Answer: A

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Question 3

A firm has a production function given by Q = 2L^0.5K^0.5. The price of labor is ₦100 per unit and the price of capital is ₦200 per unit. Find the firm's optimal input combination of labor and capital.

Correct A. (10,5)

B. (5,10)

C. (15,3)

D. (3,15)

Correct Answer: A

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Question 4

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

Correct B. ₦120, 60

C. ₦180, 40

D. ₦200, 30

Correct Answer: B

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Question 5

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.

Correct A. (2,4)

B. (4,2)

C. (3,3)

D. (1,5)

Correct Answer: A

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Question 6

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

Correct B. 1.0

C. 1.5

D. 2.0

Correct Answer: B

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Question 7

A monopolist faces a demand curve given by \( P = 100 - 2Q \). The marginal \cost (MC) is cons\tant at ₦50. If the firm produces 20 units, what is the consumer surplus (CS)?

A. ₦1000

Correct B. ₦1500

C. ₦2000

D. ₦2500

Correct Answer: B

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Question 8

Consider a simple linear regression model given by \( Y = eta_0 + eta_1X + epsilon \). If the coefficient of determination \( R^2 \) is 0.8, and the s\tandard error of the regression (SER) is 5, what is the value of the F-statistic?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 9

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

Correct B. 1.0

C. 1.5

D. 2.0

Correct Answer: B

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Question 10

A monopolist faces a demand curve given by \( P = 100 - 2Q \). The marginal \cost (MC) is cons\tant at ₦50. If the firm produces 30 units, what is the consumer surplus (CS)?

A. ₦1500

Correct B. ₦2000

C. ₦2500

D. ₦3000

Correct Answer: B

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Question 11

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

Correct 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

Correct Answer: B

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Question 12

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?

Correct 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

Correct Answer: A

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Question 13

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?

Correct 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%

Correct Answer: A

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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

Correct 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

Correct Answer: B

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Question 15

A government is u\sing fiscal policy to stimulate the economy. If the government increases government sp\ending by 10%, and the multiplier effect is 2, what is the likely effect on the aggregate demand?

A. The aggregate demand will increase by 10%

Correct B. The aggregate demand will increase by 20%

C. The aggregate demand will remain unchanged

D. The aggregate demand will decrease by 10%

Correct Answer: B

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Question 16

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

Correct B. ₦540

C. ₦600

D. ₦720

Correct Answer: B

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Question 17

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.

Correct A. ₦10 billion

B. ₦20 billion

C. ₦30 billion

D. ₦40 billion

Correct Answer: A

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Question 18

A firm's production function is given by Q = 3L^0.7K^0.3. If the firm's current input prices are w = 15 and r = 25, and it currently uses 8 units of labor and 12 units of capital, calculate the firm's current total \cost. Assume that the firm's production function exhibits increa\sing returns to scale.

A. ₦720

B. ₦800

Correct C. ₦900

D. ₦1000

Correct Answer: C

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Question 19

A country's GNP is ₦120 billion, its imports are ₦25 billion, and its exports are ₦35 billion. Calculate the country's balance of trade.

A. ₦10 billion

B. ₦20 billion

Correct C. ₦30 billion

D. ₦40 billion

Correct Answer: C

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Question 20

A firm's production function is 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 6 units of labor and 16 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

Correct B. ₦540

C. ₦600

D. ₦720

Correct Answer: B

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Question 21

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

Correct B. 80

C. 70

D. 60

Correct Answer: B

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Question 22

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

Correct C. 6

D. 7

Correct Answer: C

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Question 23

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?

Correct A. x = 40, y = 20

B. x = 30, y = 30

C. x = 20, y = 40

D. x = 10, y = 50

Correct Answer: A

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Question 24

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

Correct C. 30

D. 40

Correct Answer: C

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Question 25

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

Correct B. 30

C. 20

D. 10

Correct Answer: B

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