POST UTME UNILAG 2017 Economics | Objective

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Question 1
A firm is considering two different production processes. Process A requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit produced. Process B requires an initial investment of ₦150,000 and has a variable \cost of ₦30 per unit produced. If the firm produces 10,000 units, which process will result in lower total \cost?
A. Process A
B. Process B
C. Both processes have the same total \cost
D. Neither process has a lower total \cost
Question 2
A firm is operating in a monopoly market with a demand curve given by Q = 100 - 2P and a marginal revenue curve given by MR = 200 - 2Q. What is the firm's profit-maximizing quantity?
A. Q = 20
B. Q = 30
C. Q = 40
D. Q = 50
Question 3
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦150, and it currently employs 4 units of labor and 9 units of capital, calculate the firm's current total \cost.
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,100
Question 4
The government of Nigeria has implemented policies to promote agricultural development in the country. Which of the following is a likely outcome of these policies?
A. Increased food production and reduced poverty
B. Improved infrastructure and increased foreign investment
C. Increased government revenue and reduced unemployment
D. Increased inequality and reduced economic growth
Question 5
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production function for good A is given by Q_A = 2L^0.5K^0.5, where Q_A is the quantity of good A produced, L is the amount of labor used, and K is the amount of capital used. The production function for good B is given by Q_B = 3L^0.2K^0.8. If the firm has 100 units of labor and 200 units of capital, how much of good A should it produce?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 6
The government of Nigeria has implemented a policy to reduce inflation by increa\sing interest rates. Which of the following is a likely effect of this policy?
A. Increased borrowing and reduced consumption
B. Increased investment and reduced unemployment
C. Reduced inflation and increased economic growth
D. Increased inequality and reduced economic growth
Question 7
A country's balance of payments is given by the following accounts: Current Account: ₦100,000,000; Capital Account: ₦50,000,000; Financial Account: ₦20,000,000. What is the country's net foreign exchange earnings?
A. ₦70,000,000
B. ₦80,000,000
C. ₦90,000,000
D. ₦100,000,000
Question 8
A firm is operating under a monopoly market structure. If the firm's demand curve is given by Q = 100 - 2P and the firm's marginal revenue is 50, what is the firm's marginal \cost?
A. 25
B. 30
C. 35
D. 40
Question 9
A firm's \cost function is given by C(q) = 10q^2 + 20q + 100. If the firm's revenue function is R(q) = 20q^2 - 10q + 100, what is the profit-maximizing level of output?
A. q = 5
B. q = 10
C. q = 15
D. q = 20
Question 10
A government is considering a tax on a particular good to raise revenue. The demand function for the good is given by Q = 100 - 2P, and the supply function is given by Q = 2P - 10. If the government wants to raise revenue of ₦10,000,000, what is the optimal tax rate?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A firm's revenue function is given by R(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm produces 5 units, what is its revenue?
A. ₦75
B. ₦85
C. ₦95
D. ₦105
Question 12
A firm is operating in a perfectly competitive market with a demand curve given by Q = 100 - 2P and a supply curve given by Q = 10 + 3P. What is the equilibrium price and quantity?
A. P = 20, Q = 60
B. P = 30, Q = 50
C. P = 40, Q = 40
D. P = 50, Q = 30
Question 13
The government of a country decides to implement a policy of price control to combat inflation. However, the policy leads to a shortage of essential goods. Which of the following is a likely consequence of this policy?
A. Increased demand for essential goods
B. Reduced production of essential goods
C. Increased supply of essential goods
D. Decreased inflation rate
Question 14
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the firm increases its labor input by 20% and keeps its capital input cons\tant, what will happen to its output?
A. Output will increase by 10%
B. Output will increase by 20%
C. Output will remain the same
D. Output will decrease by 10%
Question 15
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is its balance of trade?
A. ₦10 billion surplus
B. ₦20 billion deficit
C. ₦30 billion surplus
D. ₦40 billion deficit

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