POST UTME UNN 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government of Nigeria is considering a policy to increase the price of a commodity from ₦100 to ₦150. If the demand for the commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price, what is the new quantity demanded?
A. 50
B. 75
C. 100
D. 125
Question 2
The concept of elasticity of demand is an impor\tant concept in microeconomics. Which of the following best describes the relationship between elasticity of demand and the demand curve?
A. Elasticity of demand is a measure of the responsiveness of demand to changes in price
B. The demand curve determines the elasticity of demand
C. Elasticity of demand is a consequence of the demand curve
D. The demand curve is a measure of the elasticity of demand
Question 3
A country's government imposes a tax on imports to raise revenue. The tax rate is 15% of the import value. If the country imports goods worth ₦1,500,000, what is the amount of tax paid?
A. ₦225,000
B. ₦187,500
C. ₦150,000
D. ₦225,000
Question 4
A firm's \cost function is given by C(x) = 100 + 2x^2, where x is the number of units produced. Determine the marginal \cost when the quantity produced is 10 units.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A country's GDP can be calculated u\sing the following formula: \( GDP = C + I + G + \( X - M \ \) ). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, what is the country's GDP?
A. ₦1,300 billion
B. ₦1,500 billion
C. ₦1,700 billion
D. ₦2,000 billion
Question 6
A consumer's budget constraint is given by the equation I + C = 100, where I is the amount spent on imports and C is the amount spent on consumption. If the consumer sp\ends ₦50 on imports and ₦30 on consumption, what is the opportunity \cost of increa\sing imports by ₦10?
A. +₦5
B. +₦10
C. +₦15
D. +₦20
Question 7
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦20 and ₦30 respectively, determine the optimal quantities of x and y that the consumer will purchase.
A. x = 2, y = 1
B. x = 3, y = 2
C. x = 4, y = 3
D. x = 5, y = 4
Question 8
A firm's production function is given by the equation Q = 100K^\( -1/2 \), where Q is the quantity produced and K is the capital stock. If the capital stock increases from ₦100,000 to ₦150,000, what is the new quantity produced?
A. 50
B. 75
C. 100
D. 125
Question 9
A firm's demand for labor is given by the equation Qd = 100L^\( -1/2 \), where Qd is the quantity of labor demanded and L is the wage rate. If the wage rate increases from ₦100 to ₦150, what is the new quantity of labor demanded?
A. 50
B. 75
C. 100
D. 125
Question 10
A country's inflation rate is given by the equation π = \( M2/P \) - 1, where π is the inflation rate, M2 is the money supply and P is the price level. If the money supply is ₦100 billion and the price level is ₦100, what is the inflation rate?
A. 0.01
B. 0.02
C. 0.03
D. 0.04
Question 11
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain unchanged
D. Total revenue will increase at first, then decrease
Question 12
A firm is considering two different production techno\logies to produce a certain good. The first techno\logy has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. The second techno\logy has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the firm produces 10,000 units of the good, which techno\logy will result in lower total \cost?
A. Techno\logy 1
B. Techno\logy 2
C. Both techno\logies will result in the same total \cost
D. Neither techno\logy will result in lower total \cost
Question 13
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 elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
A firm's \cost function is given by C = 2L + 3K. If the firm increases its labor input from 6 units to 9 units and holds capital input cons\tant at 12 units, what is the percentage change in \cost?
A. 25%
B. 50%
C. 75%
D. 100%
Question 15
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost is cons\tant at ₦20 per unit. If the firm produces 20 units, what is the profit-maximizing price?
A. ₦80
B. ₦90
C. ₦100
D. ₦110

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