POST UTME UNILORIN 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The Nigerian government has introduced a new policy to increase the production of maize in the country. The policy includes providing subsidies to farmers and increa\sing the import duty on maize. U\sing the concept of elasticity of supply, explain why the government's policy may be effective in increa\sing maize production.
A. The policy may be effective because the supply of maize is elastic, meaning that a small change in price will lead to a significant change in quantity supplied.
B. The policy may be effective because the demand for maize is elastic, meaning that a small change in price will lead to a significant change in quantity demanded.
C. The policy may be effective because the government's policy may lead to a decrease in the \cost of production, which may lead to an increase in quantity supplied.
D. The policy may be effective because the government's policy may lead to an increase in the quality of maize produced, which may lead to an increase in quantity demanded.
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P. If the marginal revenue is ₦50, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 3
The Nigerian government has introduced a new policy to increase the production of maize in the country. The policy includes providing subsidies to farmers and increa\sing the import duty on maize. U\sing the concept of industrialization, explain why the government's policy may not be effective in increa\sing maize production.
A. The policy may not be effective because the government's policy may lead to a decrease in the quality of maize produced, which may not be acceptable to consumers.
B. The policy may not be effective because the government's policy may lead to a decrease in the quantity of maize produced, due to the high \cost of production.
C. The policy may not be effective because the government's policy may lead to a decrease in the revenue generated from the sale of maize, due to the high \cost of production.
D. The policy may not be effective because the government's policy may lead to a decrease in the quantity of maize produced, due to the high demand for maize.
Question 4
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%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 5
A firm faces a demand curve given by Q = 50 - P. If the price elasticity of demand is 2, what is the price at which the firm will sell 40 units?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A firm's production function is given by \( Q = 10K^{\frac{1}{2}}L^{\frac{1}{2}} \), where ( K ) is the capital and ( L ) is the labor. If the firm's \cost function is given by ( C(K,L) = 10K + 20L ), calculate the firm's profit function.
A. ( pi(K,L) = 10K + 20L - 10K^{\frac{1}{2}}L^{\frac{1}{2}} )
B. ( pi(K,L) = 10K + 20L + 10K^{\frac{1}{2}}L^{\frac{1}{2}} )
C. ( pi(K,L) = 10K + 20L - 20K^{\frac{1}{2}}L^{\frac{1}{2}} )
D. ( pi(K,L) = 10K + 20L + 20K^{\frac{1}{2}}L^{\frac{1}{2}} )
Question 7
The Nigerian government has implemented a tax on imported goods to reduce the trade deficit. What is the effect of this tax on the supply curve?
A. Shifts the supply curve to the left
B. Shifts the supply curve to the right
C. Does not affect the supply curve
D. Increases the supply curve
Question 8
A firm's \cost function is given by ( C(q) = 10q + 100 ), where ( q ) is the quantity produced. If the firm's revenue function is given by ( R(q) = 20q ), calculate the firm's profit function.
A. ( pi(q) = 10q + 100 - 20q )
B. ( pi(q) = 10q - 20q + 100 )
C. ( pi(q) = 10q + 100 + 20q )
D. ( pi(q) = 10q - 100 - 20q )
Question 9
Consider a country with a GDP of ₦10 trillion and a GNP of ₦11 trillion. If the country's net factor income from abroad is ₦1 trillion, calculate the country's net capital outflow.
A. ₦1 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 10
The inflation rate in a country is 5% per annum. If the current price level is 100, what will be the price level after 2 years?
A. 105
B. 110
C. 115
D. 120
Question 11
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's budget constraint is given by 2x + 4y = ₦100, what is the consumer's optimal bundle?
A. (x, y) = (20, 10)
B. (x, y) = (15, 12.5)
C. (x, y) = (10, 20)
D. (x, y) = (5, 25)
Question 12
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 13
A firm is operating on a long-run average \cost curve. If the firm experiences a decrease in the price of a key input, what will happen to its long-run average \cost curve?
A. The long-run average \cost curve will shift to the left.
B. The long-run average \cost curve will shift to the right.
C. The long-run average \cost curve will remain unchanged.
D. The long-run average \cost curve will shift upwards.
Question 14
A firm operates under cons\tant returns to scale. If it increases its output by 10%, what will be the percentage change in its total \cost?
A. 0%
B. 5%
C. 10%
D. 15%
Question 15
A country's GDP at market price is ₦1,200 billion. If the implicit deflator is 120, what is the GDP at cons\tant price?
A. ₦1,000 billion
B. ₦1,050 billion
C. ₦1,100 billion
D. ₦1,200 billion

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: