POST UTME UNILAG 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is given by the equation ( u(x, y) = x^2 + 2y^2 ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the consumer's optimal bundle of x and y.
A. x = 40, y = 20
B. x = 20, y = 40
C. x = 30, y = 30
D. x = 50, y = 10
Question 2
A country's balance of payments is given by the equation BOP = X - M + \( F - I \). If the country's exports are ₦500 billion, imports are ₦400 billion, foreign aid is ₦200 billion, and foreign investment is ₦100 billion, what is the country's balance of payments?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 3
A firm's demand curve is given by Q = 100 - 2P and the supply curve is given by Q = 2P - 10. What is the equilibrium price and quantity?
A. ₦50, 60
B. ₦30, 70
C. ₦20, 80
D. ₦10, 90
Question 4
A firm's demand curve is given by P = 100 - Q. The firm's marginal \cost curve is given by MC = 20. What is the profit-maximizing price?
A. 80
B. 90
C. 100
D. 110
Question 5
A firm's revenue function is given by ( R(q) = 20q - 10q^2 ). If the firm produces 5 units of output, what is the revenue?
A. ( 20(5) - 10(5)^2 )
B. ( 20(5) - 10(5)^2 + 100 )
C. ( 20(5) - 10(5)^2 - 100 )
D. ( 20(5) - 10(5)^2 + 1000 )
Question 6
A perfectly competitive market has 5 firms, each producing a homogeneous product. If the market demand curve is given by \( Q_d = 100 - P \) and the market supply curve is given by \( Q_s = 20 + 2P \), find the equilibrium price and quantity.
A. P = 40, Q = 60
B. P = 60, Q = 40
C. P = 50, Q = 50
D. P = 30, Q = 70
Question 7
A firm's production function is given by Q = 2L + 3K. The prices of labor and capital are ₦10 and ₦20 respectively. What is the firm's \cost function?
A. C = 10L + 20K
B. C = 20L + 10K
C. C = 30L + 20K
D. C = 20L + 30K
Question 8
A monopolist faces a demand curve given by \( P = 100 - 2Q \). If the firm's marginal \cost (MC) is given by the equation \( MC = 10 + Q \), what is the monopolist's optimal output level?
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 9
The price elasticity of demand for a product is given by the equation E = -2P/Q. If the price of the product is ₦100 and the quantity demanded is 100 units, what is the price elasticity of demand?
A. -2
B. -1
C. 1
D. 2
Question 10
A firm is considering two different production processes to manufacture a product. 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, what is the total \cost of production for each process?
A. Process A: ₦1,500,000; Process B: ₦1,300,000
B. Process A: ₦1,300,000; Process B: ₦1,500,000
C. Process A: ₦1,000,000; Process B: ₦1,200,000
D. Process A: ₦1,200,000; Process B: ₦1,000,000
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 10Q + 100. If the monopolist produces 20 units of the good, what is the profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 12
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price. Find the equilibrium price and quantity.
A. Equilibrium price: ₦50; Equilibrium quantity: 100 units
B. Equilibrium price: ₦75; Equilibrium quantity: 150 units
C. Equilibrium price: ₦100; Equilibrium quantity: 200 units
D. Equilibrium price: ₦125; Equilibrium quantity: 250 units
Question 13
A consumer's budget constraint is given by \( P_1x_1 + P_2x_2 = I \), where \( P_1 \) and \( P_2 \) are prices, \( x_1 \) and \( x_2 \) are quantities, and ( I ) is income. If prices are 10 and 20, quantities are 2 and 3, and income is 100, what is the consumer's budget balance?
A. ( 10(2) + 20(3) = 100 )
B. ( 10(2) + 20(3) = 1000 )
C. ( 10(2) + 20(3) = 10000 )
D. ( 10(2) + 20(3) = 100000 )
Question 14
The concept of scarcity in economics is closely related to the idea of opportunity \cost. Explain how the opportunity \cost of a choice is determined and provide an example of how it affects a firm's decision-making process.
A. Opportunity \cost is determined by the value of the next best alternative foregone.
B. Opportunity \cost is determined by the value of the next best alternative foregone, but only in the short run.
C. Opportunity \cost is determined by the value of the next best alternative foregone, but only in the long run.
D. Opportunity \cost is determined by the value of the next best alternative foregone, regardless of the time period.
Question 15
A country's balance of payments account is given by the following equations: \( BOP = X - M \), where ( X ) is the value of exports and ( M ) is the value of imports. If the value of exports is ₦1000 and the value of imports is ₦1200, find the balance of payments.
A. ₦-200
B. ₦200
C. ₦0
D. ₦500

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