POST UTME UNN 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total \cost is given by TC = 100 + 20Q + 2Q^2. If the firm produces 20 units, what is its total \cost?
A. ₦1200
B. ₦1500
C. ₦1800
D. ₦2000
Question 2
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What will be the effect on the equilibrium price and quantity of the good?
A. The equilibrium price will increase, and the equilibrium quantity will decrease.
B. The equilibrium price will decrease, and the equilibrium quantity will increase.
C. The equilibrium price will remain unchanged, and the equilibrium quantity will decrease.
D. The equilibrium price will increase, and the equilibrium quantity will remain unchanged.
Question 3
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦50 and ₦75 respectively, and the consumer's budget constraint is 2x + 3y = ₦150, what is the consumer's optimal consumption bundle?
A. x = 10, y = 5
B. x = 15, y = 10
C. x = 20, y = 15
D. x = 25, y = 20
Question 4
A consumer has the following utility function: U(x, y) = 2x + 3y. The prices of x and y are ₦5 and ₦10, respectively. What is the consumer's optimal bundle of x and y?
A. (10, 5)
B. (5, 10)
C. (15, 3)
D. (20, 2)
Question 5
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm hires 16 units of labor and 9 units of capital, what is the opportunity \cost of hiring one more unit of labor?
A. ₦1250
B. ₦1500
C. ₦1750
D. ₦2000
Question 6
A firm's production function is given by Q = 3L^0.7K^0.3. If the firm's labor (L) increases by 20% and its capital (K) remains cons\tant, what will be the effect on the firm's output?
A. The firm's output will increase by 20%.
B. The firm's output will increase by 30%.
C. The firm's output will remain unchanged.
D. The firm's output will decrease by 20%.
Question 7
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is labor and H is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 2L + 3H = ₦1000, what is the firm's optimal production level?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 8
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Question 9
A government is considering implementing a tax on a particular good. The demand function for the good is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10. If the government wants to raise revenue of ₦1000, determine the optimal tax rate.
A. \( t = 10 \)
B. \( t = 20 \)
C. \( t = 30 \)
D. \( t = 40 \)
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases by 10% and its capital (K) remains cons\tant, what will be the effect on the firm's output?
A. The firm's output will increase by 10%.
B. The firm's output will increase by 20%.
C. The firm's output will remain unchanged.
D. The firm's output will decrease by 10%.
Question 11
Determine the equilibrium price and quantity of a perfectly competitive market when the demand function is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10.
A. \( P = 20, Q = 60 \)
B. \( P = 30, Q = 50 \)
C. \( P = 40, Q = 70 \)
D. \( P = 50, Q = 90 \)
Question 12
A firm's demand function for a good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 13
A firm's demand function is given by Q = 100 - 2P. If the price elasticity of demand is -2, what is the firm's marginal revenue function?
A. MR = 100 - 2P
B. MR = 50 - P
C. MR = 200 - 4P
D. MR = 50 + P
Question 14
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 100, and its marginal \cost (MC) is 80, what is the firm's optimal quantity of output?
A. 50
B. 75
C. 100
D. 125
Question 15
A country's GDP at market price is ₦100 billion. The government imposes a 10% sales tax on all goods and services. What will be the country's GDP at factor \cost?
A. ₦90 billion
B. ₦100 billion
C. ₦110 billion
D. ₦120 billion

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