POST UTME UNILAG 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is given by MR = -2Q, what is the firm's total revenue function?
A. \( TR = -Q^2 \)
B. \( TR = Q^2 \)
C. \( TR = 2Q^2 \)
D. \( TR = -2Q^2 \)
Question 2
A firm has a production function Q = 2L + 3K, where L is labor and K is capital. The firm's \cost function is given by C = 2L + 3K. If the firm has 10 units of labor and 5 units of capital, what is the firm's total \cost?
A. ₦100
B. ₦150
C. ₦200
D. ₦250
Question 3
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the optimal bundle of x and y?
A. x = 80, y = 60
B. x = 60, y = 80
C. x = 40, y = 120
D. x = 120, y = 40
Question 4
A firm's production function is given by Q = 2L^2 + 3K, where L and K are the quantities of labor and capital respectively. If the firm's \cost function is C = 10L + 20K, and the prices of labor and capital are ₦5 and ₦10 respectively, what is the firm's profit-maximizing level of output?
A. The point where MP_L = MP_K
B. The point where MC_L = MC_K
C. The point where P = MC
D. The point where P = 2MC
Question 5
A consumer has a utility function U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 100, and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (x,y) = (10,0)
B. (x,y) = (5,5)
C. (x,y) = (0,10)
D. (x,y) = (20,0)
Question 6
A firm is operating under a perfectly competitive market structure. If the market price is ₦200 and the firm's marginal \cost is ₦150, what is the firm's profit-maximizing output?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 7
Consider a monetary policy where the central bank increases the reserve requirement from 10% to 15%. What is the effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 8
A firm's average total \cost (ATC) curve is U-shaped. What does this indicate about the firm's production?
A. The firm is producing at a minimum efficient scale.
B. The firm is producing at a maximum efficient scale.
C. The firm is producing at a suboptimal scale.
D. The firm is producing at a superoptimal scale.
Question 9
A government's budget constraint is given by the equation B = T + I. If the government's current budget is 100 billion naira and the current tax revenue (T) is 60 billion naira, what is the required level of government sp\ending (I)?
A. 20
B. 40
C. 60
D. 80
Question 10
In a perfectly competitive market, if the demand for a product increases, what happens to the equilibrium price and quantity?
A. The equilibrium price increases, and the equilibrium quantity decreases.
B. The equilibrium price decreases, and the equilibrium quantity increases.
C. The equilibrium price remains the same, and the equilibrium quantity increases.
D. The equilibrium price remains the same, and the equilibrium quantity decreases.
Question 11
Consider a firm operating under a perfectly competitive market structure. If the firm's average \cost curve intersects the demand curve at point E, where the price is ₦100 and the quantity supplied is 100 units, and the firm's average \cost is ₦120, what is the firm's profit per unit?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 12
A firm faces a downward-sloping demand curve, and its marginal revenue (MR) curve intersects the marginal \cost (MC) curve at point E. If the firm produces at this level of output, what is the opportunity \cost of producing one more unit of output?
A. The price elasticity of demand
B. The slope of the demand curve
C. The difference between MR and MC
D. The firm's total revenue
Question 13
The demand for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by Qs = 2P - 100. What is the equilibrium price and quantity?
A. P = 50, Q = 50
B. P = 75, Q = 75
C. P = 100, Q = 100
D. P = 125, Q = 125
Question 14
A firm's production function is given by the equation \( Q = 2L + 3K \), where Q is the output, L is the labor, and K is the capital. If the firm hires 10 units of labor and 5 units of capital, what is the output?
A. 20
B. 30
C. 40
D. 50
Question 15
A government budget is given by the equation \( B = T + G \), where B is the budget deficit, T is the tax revenue, and G is the government exp\enditure. If the tax revenue is ₦50 billion and the government exp\enditure is ₦60 billion, what is the budget deficit?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion

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