POST UTME UNN 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good with the following production function: Q = 2L^0.5 + 3K^0.5. If the firm's output is 10 units, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the marginal product of labor?
A. 1 unit
B. 2 units
C. 3 units
D. 4 units
Question 2
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. U\sing the concept of returns to scale, explain why the firm's production will increase or decrease as the inputs of labor and capital increase.
A. The firm's production will increase as the inputs of labor and capital increase.
B. The firm's production will decrease as the inputs of labor and capital increase.
C. The firm's production will remain cons\tant as the inputs of labor and capital increase.
D. The firm's production will increase as the inputs of labor increase, but decrease as the inputs of capital increase.
Question 3
A firm is operating in a monopoly market with a downward-sloping demand curve. If the firm increases its production, what will happen to its marginal revenue?
A. Marginal revenue will increase
B. Marginal revenue will decrease
C. Marginal revenue will remain cons\tant
D. Marginal revenue will become negative
Question 4
A firm is producing a good with the following production function: Q = 2L^0.5 + 3K^0.5. If the firm's output is 10 units, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum \cost of producing 10 units of output?
A. ₦1500
B. ₦2000
C. ₦2500
D. ₦3000
Question 5
A monopolistically competitive firm faces a demand curve given by Qd = 100 - 2P. If the firm's marginal revenue (MR) is 20 and the price elasticity of demand is 0.5, what is the firm's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 6
A consumer is faced with the following utility function: U(x, y) = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 10
B. x = 20, y = 5
C. x = 5, y = 20
D. x = 15, y = 15
Question 7
The central bank of a country has decided to implement a monetary policy of reducing the money supply to combat inflation. U\sing the concept of the money multiplier, explain how the policy will affect the money supply and the overall economy.
A. The policy will lead to a decrease in the money supply, which will reduce the overall economy.
B. The policy will lead to an increase in the money supply, which will stimulate the overall economy.
C. The policy will have no effect on the money supply, but will lead to a decrease in the overall economy.
D. The policy will lead to a decrease in the money supply, which will increase the overall economy.
Question 8
A firm is operating in a monopoly market with a downward-sloping demand curve. If the firm increases its production, what will happen to its marginal revenue?
A. Marginal revenue will increase
B. Marginal revenue will decrease
C. Marginal revenue will remain cons\tant
D. Marginal revenue will become negative
Question 9
A country is experiencing a recession, and the government wants to implement a monetary policy to stimulate economic growth. Which of the following monetary policy tools would be most effective in increa\sing aggregate demand?
A. Reduce the reserve requirement for commercial banks.
B. Increase the discount rate for commercial banks.
C. Increase the money supply by buying government securities.
D. Decrease the money supply by selling government securities.
Question 10
A firm is producing a good with the following \cost function: C = 2L + 3K. If the firm's output is 10 units, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the marginal \cost of producing 10 units of output?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 11
The Nigerian government has implemented a policy to increase industrial production through the use of subsidies. However, the use of subsidies has also led to an increase in the budget deficit. What is the opportunity \cost of u\sing subsidies in industry?
A. The opportunity \cost is the reduction in industrial production.
B. The opportunity \cost is the increase in budget deficit.
C. The opportunity \cost is the decrease in government revenue.
D. The opportunity \cost is the increase in inflation.
Question 12
A firm's \cost function is given by C(q) = 2q^2 + 10q + 100. If the firm produces 20 units, what is the total \cost?
A. ₦1,400
B. ₦1,600
C. ₦2,000
D. ₦2,400
Question 13
A firm's revenue function is given by R(q) = 100q - 2q^2. If the firm produces 20 units, what is the marginal revenue?
A. ₦1,800
B. ₦2,000
C. ₦2,200
D. ₦2,400
Question 14
A firm's \cost function is given by C = 100 + 2Q, where C is \cost and Q is quantity produced. If the firm produces 50 units, what is the total \cost?
A. $150
B. $200
C. $250
D. $300
Question 15
A firm is producing a good with the following \cost function: C = 2L + 3K. If the firm's output is 10 units, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the total \cost of producing 10 units of output?
A. ₦500
B. ₦1000
C. ₦1500
D. ₦2000

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