POST UTME UNILORIN 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the \cost-minimizing combination of labor and capital?
A. L = 4, K = 2
B. L = 2, K = 4
C. L = 1, K = 8
D. L = 8, K = 1
Question 2
A country imposes a tariff of 20% on imported goods. What is the effect on the domestic price of the imported good?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 3
A central bank implements a monetary policy by increa\sing the reserve requirement for commercial banks. What is the likely effect on the money supply in the economy?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 4
A country's balance of payments is given by BOP = X - M, where X is exports and M is imports. If the country's current exports and imports are 100 and 80 respectively, what is the balance of payments?
A. 10
B. 20
C. 30
D. 40
Question 5
A firm's \cost function is given by C = 100 + 2L + 3H, where C is \cost, L is labor and H is capital. If the firm's current labor and capital are 10 and 5 respectively, what is the total \cost?
A. 150
B. 200
C. 250
D. 300
Question 6
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦100 billion, and the values of C, I, G, X, and M are ₦50 billion, ₦20 billion, ₦10 billion, ₦30 billion, and ₦20 billion respectively, what is the value of the country's imports?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 7
A government imposes a tax of ₦10 per unit on a firm's output. The firm's supply curve is given by Q = 100 - 2P. What is the new supply curve after the tax is imposed?
A. Q = 100 - 2P - 10
B. Q = 100 - 2P + 10
C. Q = 100 - 2P - 20
D. Q = 100 - 2P + 20
Question 8
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the output?
A. 20
B. 25
C. 30
D. 35
Question 9
A firm's 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. If the firm has 100 units of labor and 100 units of capital, what is the maximum output?
A. 200
B. 250
C. 300
D. 350
Question 10
The central bank of a country increases the money supply by 10%. If the original money supply was ₦1000, what is the new money supply?
A. ₦1100
B. ₦1105
C. ₦1110
D. ₦1115
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the \cost-minimizing combination of labor and capital?
A. L = 4, K = 2
B. L = 2, K = 4
C. L = 1, K = 8
D. L = 8, K = 1
Question 12
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market price is set at $P = 10, and the inverse demand function is given by P = 100 - 2Q, where Q is the total quantity demanded, what is the equilibrium quantity produced by each firm?
A. 25
B. 50
C. 75
D. 100
Question 13
A consumer's indifference curve is a graphical representation of the various combinations of two goods that yield the same level of satisfaction. If the consumer's indifference curve is convex to the origin, what does this imply about the consumer's preferences?
A. The consumer prefers more of good X to good Y.
B. The consumer prefers more of good Y to good X.
C. The consumer is indifferent between good X and good Y.
D. The consumer prefers a combination of both goods X and Y.
Question 14
A government imposes a tax on a firm's profits. What is the likely effect on the firm's investment decisions?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 15
A firm is considering investing in a new project with a net present value (NPV) of $50 million. What is the likely effect on the firm's \cost of capital?
A. Increase
B. Decrease
C. No change
D. Uncertain

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