POST UTME UNN 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by the equation Q = 2L^0.5, where Q is the quantity produced and L is the labor input. If the firm's wage rate is $10 per hour, what is the optimal level of labor input (L) that the firm should hire to maximize profits?
A. 4 hours
B. 6 hours
C. 8 hours
D. 10 hours
Question 2
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, what is the equilibrium price (P) and quantity (Q) in the market?
A. P = 25, Q = 50
B. P = 30, Q = 60
C. P = 35, Q = 70
D. P = 40, Q = 80
Question 3
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are ₦100 billion, imports are ₦80 billion, foreign investment is ₦20 billion, and domestic investment is ₦30 billion, find the balance of payments.
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 4
The demand curve for a good is said to be elastic when the percentage change in the quantity demanded of the good is greater than the percentage change in the price of the good. This occurs when the demand curve is _______________.
A. horizontal
B. vertical
C. inelastic
D. unit elastic
Question 5
Consider a perfectly competitive market with 5 firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P and the market supply curve is given by Qs = 2P - 20, find the equilibrium price and quantity.
A. ₦50, 100 units
B. ₦75, 50 units
C. ₦25, 150 units
D. ₦100, 25 units
Question 6
A country is experiencing a trade deficit due to a decrease in exports and an increase in imports. If the country's GDP is 100 billion, and the trade deficit is 20 billion, what is the percentage change in the trade deficit?
A. \( \frac{20}{100} \times 100 = 20% \)
B. \( \frac{20}{100} \times 100 = 2% \)
C. \( \frac{20}{100} \times 100 = 200% \)
D. \( \frac{20}{100} \times 100 = 0.2% \)
Question 7
The government of Nigeria has introduced a new policy to increase industrial production. The policy involves providing subsidies to firms that produce goods that are in high demand. However, the policy also involves increa\sing the price of raw materials and other inputs. Assuming that the demand for the goods is perfectly elastic, what will be the effect of the policy on the total revenue of firms?
A. The total revenue of firms will increase.
B. The total revenue of firms will decrease.
C. The total revenue of firms will remain the same.
D. The effect on total revenue is ambiguous.
Question 8
A firm's demand function is given by Q = 100 - 2P, and its supply function is given by Q = 2P + 10. If the market is initially in equilibrium at a price of ₦50, what is the change in producer surplus if the price is increased to ₦60?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 9
A firm is producing a good u\sing a production function with the following characteristics: Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor (MPL) at this point?
A. \( MPL = \frac{partial Q}{partial L} = \frac{K^{0.5}}{L^{0.5}} \)
B. \( MPL = \frac{partial Q}{partial L} = \frac{L^{0.5}}{K^{0.5}} \)
C. \( MPL = \frac{partial Q}{partial L} = \frac{2L^{0.5}K^{0.5}}{L} \)
D. \( MPL = \frac{partial Q}{partial L} = \frac{2L^{0.5}K^{0.5}}{K} \)
Question 10
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = ₦100, and the prices of the two goods are ₦2 and ₦3 respectively, what is the consumer's optimal bundle of goods?
A. (10, 20)
B. (20, 10)
C. (15, 15)
D. (30, 5)
Question 11
A country's balance of payments (BOP) accounts can be affected by various factors. Which of the following factors is NOT a component of the current account?
A. Exports
B. Imports
C. Foreign Direct Investment (FDI)
D. Remit\tances
Question 12
A country has a production function given by Y = 2L^0.5 + 3K^0.5, where Y is the output, L is the labor and K is the capital. If the country has 100 units of labor and 200 units of capital, what is the output?
A. 200
B. 250
C. 300
D. 350
Question 13
The money supply in an economy is the total amount of money circulating in the economy, including _______________ and currency in circulation.
A. bank deposits
B. currency in circulation
C. checkable deposits
D. all of the above
Question 14
A country's balance of payments (BOP) accounts are given by the following equations: Exports (X) = ₦1000, Imports (M) = ₦1500, and Net Factor Income (NFI) = ₦200. What is the country's current account balance?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 15
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q + 100, and its revenue function is given by R(Q) = 3Q^2 + 20Q. What is the firm's profit-maximizing quantity of output?
A. 10
B. 20
C. 30
D. 40

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