POST UTME UNILAG 2021 Economics | Objective

Are you preparing for POST UTME UNILAG exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The concept of elasticity of demand is crucial in unders\tanding the responsiveness of consumers to changes in prices. Which of the following statements best describes the law of demand?
A. As the price of a commodity increases, the quantity demanded decreases.
B. As the price of a commodity decreases, the quantity demanded increases.
Correct C. The law of demand states that the quantity demanded of a commodity is inversely related to its price.
D. The law of demand is a graphical representation of the relationship between price and quantity demanded.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
The production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. What is the returns to scale of the production function?
Correct A. Increa\sing returns to scale
B. Decrea\sing returns to scale
C. Cons\tant returns to scale
D. Negative returns to scale

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
The following diagram shows the production possibilities frontier (PPF) of a country.
Correct A. The country is experiencing economic growth.
B. The country is experiencing economic decline.
C. The country is experiencing stagflation.
D. The country is experiencing hyperinflation.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
The following table shows the national income accounting identity for a country.
Correct A. Y = C + I + G + \( X - M \)
B. Y = C + I + G + X - M
C. Y = C + I + G + X + M
D. Y = C + I + G - X + M

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
The following diagram shows the \cost and revenue curves of a firm.
A. The firm is operating in the short run.
Correct B. The firm is operating in the long run.
C. The firm is experiencing increa\sing returns to scale.
D. The firm is experiencing decrea\sing returns to scale.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A consumer's indifference curve is given by the equation ( u(x,y) = x^{0.5}y^{0.5} ). 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. (20, 10)
B. (10, 20)
Correct C. (15, 15)
D. (5, 5)

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
The government of Nigeria plans to invest ₦500 billion in the agricultural sector over the next 5 years. If the investment is expected to increase agricultural output by 10% per annum, what will be the total output after 5 years?
A. ₦1.5 trillion
B. ₦1.8 trillion
Correct C. ₦2.1 trillion
D. ₦2.5 trillion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A firm produces two goods, x and y, u\sing two inputs, labor (L) and capital (K). The production function is given by \( x = 2L^{0.5}K^{0.5} \) and \( y = 3L^{0.5}K^{0.5} \). If the firm has 100 units of labor and 50 units of capital, find the total output of the firm.
A. 200
B. 300
Correct C. 400
D. 500

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
The balance of payments (BOP) of a country 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
Correct B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A firm has a \cost function given by \( C = 2x^2 + 3y^2 \) and a revenue function given by \( R = 4x^2 + 5y^2 \). Find the profit function of the firm.
Correct A. \( P = x^2 + 2y^2 \)
B. \( P = 2x^2 + y^2 \)
C. \( P = x^2 + 3y^2 \)
D. \( P = 3x^2 + 2y^2 \)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
Correct A. 20%
B. 30%
C. 40%
D. 50%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 50 - 2Q. If the firm is currently producing 20 units, what is the price elasticity of demand?
A. 1
Correct B. 2
C. 3
D. 4

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A country's balance of payments (BOP) 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 and the value of imports is 80, what is the balance of payments?
Correct A. 20
B. 30
C. 40
D. 50

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A firm is producing a product with a total revenue (TR) of 1000 and a total \cost (TC) of 800. If the firm's profit-maximizing output is 20 units, what is the price elasticity of demand?
A. 1
Correct B. 2
C. 3
D. 4

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A country's inflation rate is given by the equation \frac{\Delta P}{P} = 0.05, where \Delta P is the change in price and P is the current price. If the current price is 100, what is the new price after one year?
A. 105
Correct B. 110
C. 115
D. 120

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A government imposes a tax on a firm's profits. The tax rate is 20% of the profits. If the firm's profits are ₦1,000,000, what is the amount of tax paid?
Correct A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A country's GDP is ₦10,000,000,000. If the government decides to increase the GDP by 15% through fiscal policy, what will be the new GDP?
A. ₦11,500,000,000
Correct B. ₦12,000,000,000
C. ₦12,500,000,000
D. ₦13,000,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A firm's production function is given by Q = 100K^0.5L^0.5, where Q is output, K is capital, and L is labor. If the firm increases its capital from 100 to 121, and labor from 100 to 121, what will be the percentage change in output?
A. 10%
Correct B. 15%
C. 20%
D. 25%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A country's demand for a good is given by Qd = 100 - 2P, where Qd is demand and P is price. If the price increases from ₦10 to ₦15, what will be the percentage change in demand?
A. 20%
Correct B. 30%
C. 40%
D. 50%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A country's supply of a good is given by Qs = 50 + 3P, where Qs is supply and P is price. If the price increases from ₦10 to ₦15, what will be the percentage change in supply?
A. 20%
Correct B. 30%
C. 40%
D. 50%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
The elasticity of demand for a product is 0.5. If the price of the product increases by 10%, what is the percentage change in the quantity demanded?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production function for good X is given by Q_X = 2L^0.5K^0.5. The production function for good Y is given by Q_Y = 3L^0.75K^0.25. If the firm has 100 units of labor and 50 units of capital, what is the total output of the firm?
A. 100
B. 150
Correct C. 200
D. 250

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue (MR) function is given by MR = 2Q. If the firm produces 20 units of output, what is the price of the product?
A. 40
Correct B. 50
C. 60
D. 70

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A firm has a \cost function given by C = 100 + 2Q + 0.5Q^2. If the firm produces 20 units of output, what is the total \cost of production?
A. 150
B. 200
Correct C. 250
D. 300

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A firm has a revenue function given by R = 100Q - 2Q^2. If the firm produces 20 units of output, what is the total revenue?
A. 1000
B. 1200
Correct C. 1500
D. 1800

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support