POST UTME UNILAG 2020 Economics | Objective

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Question 1
Consider a firm that operates under cons\tant returns to scale. If the firm's production function is given by Q = 2L^2 + 3K, where Q is output, L is labor, and K is capital, what is the marginal product of labor (MPL) when L = 4 and K = 5?
A. 12
B. 16
C. 20
D. 24
Question 2
A government imposes a tax of $10 on a firm's output. If the firm's supply curve is given by Q = 100 - 2P and the demand curve is given by Q = 200 - 5P, what is the new equilibrium price and quantity?
A. Price: $20, Quantity: 50
B. Price: $30, Quantity: 70
C. Price: $40, Quantity: 90
D. Price: $50, Quantity: 110
Question 3
A government's budget constraint is given by B = T + I, where B is the budget, T is the tax revenue, and I is the interest payment. If the government's tax revenue is ₦500 and the interest payment is ₦200, what is the government's budget?
A. ₦700
B. ₦800
C. ₦900
D. ₦1000
Question 4
A firm is operating in a perfectly competitive market with a demand curve given by P = 100 - 2Q. If the firm's current output is Q = 20, what is the firm's marginal revenue (MR) at this output level?
A. 40
B. 50
C. 60
D. 70
Question 5
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 12, and the price of good x is 2, what is the consumer's optimal bundle of goods?
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 6, y = 0
D. x = 0, y = 6
Question 6
A country's GDP is $100 billion, its GNP is $120 billion, and its national income is $150 billion. What is the country's net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 7
A firm is producing a good with a marginal revenue of ₦50 and a marginal \cost of ₦30. What is the firm's profit-maximizing output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 8
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the price of good x is ₦2, what is the optimal quantity of good x?
A. 6
B. 8
C. 10
D. 12
Question 9
A government imposes a tax on a firm's output. If the firm's supply curve is perfectly elastic, what will be the effect on the firm's output?
A. The firm's output will increase.
B. The firm's output will decrease.
C. The firm's output will remain unchanged.
D. The firm's output will increase, but at a decrea\sing rate.
Question 10
A government imposes a tax of $10 on a firm's output. If the firm's supply curve is given by Q = 100 - 2P and the demand curve is given by Q = 200 - 5P, what is the new equilibrium price and quantity?
A. Price: $20, Quantity: 50
B. Price: $30, Quantity: 70
C. Price: $40, Quantity: 90
D. Price: $50, Quantity: 110
Question 11
Consider a firm that operates in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm's output will increase, but at a decrea\sing rate.
Question 12
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 12, and the price of good x is 2, what is the consumer's optimal bundle of goods?
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 6, y = 0
D. x = 0, y = 6
Question 13
A consumer's utility function is given by U = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦10 and ₦20 respectively, what is the consumer's optimal bundle of x and y?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 20, y = 2
D. x = 2, y = 20
Question 14
A firm's production function is given by Q = 2L + 3K. If the firm's \cost function is given by C = 10L + 20K, and the price of good L is ₦5, what is the optimal quantity of good K?
A. 2
B. 4
C. 6
D. 8
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor (MPL) when the firm is producing at the current input levels?
A. 1
B. 2
C. 3
D. 4

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