POST UTME UNILORIN 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its revenue?
A. Revenue will increase because the firm is charging a higher price for its product.
B. Revenue will decrease because the firm is charging a higher price for its product, but the quantity demanded will decrease.
C. Revenue will remain the same because the firm is charging a higher price for its product, but the quantity demanded will increase.
D. Revenue will increase because the firm is charging a higher price for its product, and the quantity demanded will increase.
Question 2
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is $20, what is the firm's current quantity demanded?
A. 80
B. 90
C. 70
D. 60
Question 3
A monopolist faces a demand curve given by Q = 100 - 2P, where Q is quantity and P is price. The monopolist's marginal \cost is given by MC = 5 + 2Q. What is the monopolist's optimal price and quantity?
A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20
Question 4
A consumer has a utility function given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 200, y = 150
B. x = 150, y = 200
C. x = 100, y = 300
D. x = 300, y = 100
Question 5
A firm faces a production function given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital and L is labor. If the firm's objective is to maximize profits, and the price of output is P = 10, the price of capital is w_K = 2, and the price of labor is w_L = 3, what is the optimal level of capital and labor?
A. K = 100, L = 100
B. K = 200, L = 50
C. K = 50, L = 200
D. K = 100, L = 50
Question 6
A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods. The prices of the goods are $2 and $3 respectively. The consumer's budget is $10. Find the optimal quantities of the goods that maximize the consumer's utility.
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 4, y = 0
D. x = 0, y = 4
Question 7
A country's balance of payments (BOP) is given by the following equation: BOP = X - M + \( F - I \). If the country's current account balance is $100 billion, its capital account balance is $50 billion, and its financial account balance is -$200 billion, what is the country's overall BOP balance?
A. 100
B. 50
C. -200
D. -150
Question 8
The government of a country has implemented a policy of import substitution industrialization. Which of the following is a likely consequence of this policy?
A. An increase in the production of consumer goods
B. An increase in the production of capital goods
C. A decrease in the production of intermediate goods
D. An increase in the production of agricultural goods
Question 9
A government plans to reduce poverty by increa\sing the minimum wage. However, this increase may lead to higher production \costs for firms, which could result in higher prices for consumers. U\sing the concept of opportunity \cost, explain why the government's plan may not be effective in reducing poverty.
A. The increase in minimum wage will lead to higher production \costs, which will be passed on to consumers in the form of higher prices, thereby reducing the purcha\sing power of the poor.
B. The government's plan will lead to a decrease in the opportunity \cost of labor, cau\sing firms to hire more workers and reduce unemployment.
C. The increase in minimum wage will lead to a decrease in the opportunity \cost of leisure, cau\sing people to work less and enjoy more leisure time.
D. The government's plan will lead to a decrease in the opportunity \cost of education, cau\sing people to invest more in education and reduce poverty.
Question 10
A country's GDP is given by \( GDP = 1000 + 200Y - 50X \), where Y is government exp\enditure and X is taxes. If government exp\enditure increases by 10% and taxes decrease by 5%, what is the percentage change in GDP?
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
The agricultural sector in Nigeria has been characterized by low productivity and low income levels. Which of the following policies would be most effective in addres\sing this issue?
A. Increa\sing government subsidies for fertilizers and pesticides
B. Implementing a policy of land reform
C. Increa\sing investment in irrigation infrastructure
D. Increa\sing the use of genetically modified crops
Question 12
The demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. The supply function is given by Q = 2P - 10. Find the equilibrium price and quantity.
A. P = 20, Q = 30
B. P = 30, Q = 20
C. P = 40, Q = 10
D. P = 10, Q = 40
Question 13
A monopolist faces a demand curve given by Q = 100 - 2P. What is the price elasticity of demand at a price of 50?
A. 2
B. -2
C. 1/2
D. -1/2
Question 14
A country's inflation rate is given by \( pi = \frac{MV}{PY} \), where M is money supply, V is velocity of money, P is price level, and Y is real GDP. If the money supply increases by 10%, and the velocity of money decreases by 5%, what is the percentage change in inflation rate?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
A country's balance of payments is given by the following equation: BOP = X - M, where BOP is the balance of payments, 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 $120, what is the balance of payments?
A. $-20
B. $20
C. $10
D. $30

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