POST UTME UNIBEN 2018 Economics | Objective

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Question 1
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 cons\tant and equal to 2, find the price at which the quantity demanded is 60.
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 2
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, find the balance of payments.
A. ₦20 billion
B. ₦40 billion
Correct C. ₦60 billion
D. ₦80 billion

Correct Answer: C

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Question 3
The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is cons\tant and equal to 3, find the price at which the quantity supplied is 80.
A. ₦20
B. ₦30
Correct C. ₦40
D. ₦50

Correct Answer: C

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Question 4
A firm's production function is given by the equation Q = 100K^0.5L^0.5, where Q is the quantity produced, K is the capital and L is the labor. If the firm has ₦100,000 to invest in capital and 10 workers to hire, find the quantity produced.
A. 100 units
B. 200 units
Correct C. 300 units
D. 400 units

Correct Answer: C

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Question 5
A country's inflation rate is given by the equation I = \( P - P0 \)/P0 x 100, where I is the inflation rate, P is the current price level and P0 is the base price level. If the current price level is ₦100 and the base price level is ₦80, find the inflation rate.
A. 12.5%
B. 25%
Correct C. 37.5%
D. 50%

Correct Answer: C

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Question 6
A perfectly competitive firm's supply curve is a
Correct A. Horizontal line
B. Vertical line
C. U-shaped curve
D. L-shaped curve

Correct Answer: A

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Question 7
A consumer's indifference curve is a
A. Straight line
Correct B. Curved line
C. U-shaped curve
D. L-shaped curve

Correct Answer: B

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Question 8
A country's balance of payments account is a
A. Statement of national income
B. Statement of national exp\enditure
Correct C. Statement of international transactions
D. Statement of national savings

Correct Answer: C

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Question 9
A government's budget is a
A. Statement of national income
B. Statement of national exp\enditure
Correct C. Statement of government revenue and exp\enditure
D. Statement of national savings

Correct Answer: C

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Question 10
A central bank's primary function is to
Correct A. Regulate the money supply
B. Regulate interest rates
C. Regulate foreign exchange rates
D. Regulate the banking system

Correct Answer: A

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Question 11
The Nigerian government has implemented policies to promote agricultural development. Which of the following is a likely outcome of these policies?
Correct A. Increased food production
B. Reduced poverty among farmers
C. Improved agricultural exports
D. Increased government revenue

Correct Answer: A

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Question 12
A monopolist faces a demand curve given by \( Q = 100 - 2P \). The monopolist's marginal \cost curve is \( MC = 10 \). What is the profit-maximizing price?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 13
A consumer's utility function is given by \( U = 2x + 3y \), where ( x ) and ( y ) are the quantities of two goods consumed. The consumer's budget constraint is \( 2x + 3y = 12 \). What is the consumer's optimal bundle?
Correct A. \( x = 2, y = 4 \)
B. \( x = 4, y = 2 \)
C. \( x = 6, y = 0 \)
D. \( x = 0, y = 6 \)

Correct Answer: A

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Question 14
A firm's \cost function is given by \( C = 2Q^2 + 10Q + 5 \). What is the firm's average \cost when \( Q = 5 \)?
A. ₦25
Correct B. ₦30
C. ₦35
D. ₦40

Correct Answer: B

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Question 15
A monopolist faces a demand curve given by \( Q = 100 - 2P \). The monopolist's marginal \cost curve is \( MC = 10 \). What is the profit-maximizing quantity?
A. 50
B. 75
Correct C. 100
D. 125

Correct Answer: C

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Question 16
A firm's demand function is given by Q = 100 - 2P + 5Y. If the price elasticity of demand is -2 and the income elasticity of demand is 0.5, what is the percentage change in quantity demanded if the price increases by 10% and income increases by 20%?
A. 20%
Correct B. 30%
C. 40%
D. 50%

Correct Answer: B

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Question 17
A government imposes a tax of ₦10 on every unit of a good. The supply function is given by Q = 50 + 2P. If the equilibrium price and quantity are affected, what is the new equilibrium price?
A. ₦20
B. ₦25
Correct C. ₦30
D. ₦35

Correct Answer: C

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Question 18
A country's GDP is ₦1 trillion. If the government increases its exp\enditure by ₦200 billion and the private sector increases its investment by ₦300 billion, what is the new GDP?
A. ₦1.4 trillion
B. ₦1.5 trillion
Correct C. ₦1.6 trillion
D. ₦1.7 trillion

Correct Answer: C

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Question 19
A firm operates in a perfectly competitive market. If the market price is ₦50 and the firm's marginal revenue is ₦60, what is the firm's profit-maximizing quantity?
A. 100 units
Correct B. 200 units
C. 300 units
D. 400 units

Correct Answer: B

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Question 20
A country's population is 20 million. If the population grows at an annual rate of 2%, what is the population after 10 years?
A. 24.8 million
B. 25.6 million
Correct C. 26.4 million
D. 27.2 million

Correct Answer: C

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Question 21
A firm's production function is given by Q = 2L^0.5H^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (H) is ₦200 per unit, and the firm's total revenue is ₦100,000, find the number of units of labor and capital the firm should employ to maximize its profit.
Correct A. L = 10, H = 5
B. L = 5, H = 10
C. L = 20, H = 10
D. L = 10, H = 20

Correct Answer: A

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Question 22
A consumer's utility function is given by U = 2x^0.5y^0.5. If the price of good x is ₦50 per unit and the price of good y is ₦75 per unit, and the consumer's budget is ₦1,000, find the optimal bundle of goods x and y that maximizes the consumer's utility.
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 20, y = 5
D. x = 10, y = 20

Correct Answer: A

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Question 23
A firm's \cost function is given by C = 2L + 3H. If the price of labor (L) is ₦100 per unit and the price of capital (H) is ₦200 per unit, and the firm's total revenue is ₦100,000, find the number of units of labor and capital the firm should employ to minimize its \cost.
Correct A. L = 10, H = 5
B. L = 5, H = 10
C. L = 20, H = 10
D. L = 10, H = 20

Correct Answer: A

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Question 24
A consumer's demand function for a good is given by Q = 100 - 2P. If the price of the good is ₦50 per unit, find the quantity of the good the consumer will demand.
Correct A. Q = 50
B. Q = 100
C. Q = 150
D. Q = 200

Correct Answer: A

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Question 25
A firm's supply function is given by Q = 2P + 100. If the price of the good is ₦50 per unit, find the quantity of the good the firm will supply.
Correct A. Q = 150
B. Q = 200
C. Q = 250
D. Q = 300

Correct Answer: A

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