POST UTME UNIOSUN 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C(x) = 100 + 2x^2. Find the marginal \cost function.
A. 4x
B. 2x^2
C. 100 + 2x^2
D. x^2 + 100
Question 2
A firm's \cost function is given by C = 2L + 3H. If the price of labor (L) is ₦100 per unit and the price of capital (H) is ₦200 per unit, calculate the marginal \cost of producing 3 units of output.
A. ₦300
B. ₦400
C. ₦500
D. ₦600
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 consumer's optimal bundle of x and y?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 4
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of the good is $10 and the wage rate is $5 per hour, what is the optimal level of labor (L) to maximize profits?
A. 4
B. 8
C. 16
D. 32
Question 5
Agricultural development in Nigeria has been hindered by several factors. Identify and explain two of these factors.
A. Lack of access to credit and high interest rates, leading to low investment in agriculture.
B. Poor infrastructure and lack of storage facilities, leading to post-harvest losses.
C. Inadequate extension services and lack of agricultural research, leading to low productivity.
D. All of the above.
Question 6
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 effect
D. Uncertain
Question 7
The demand for a product is given by the equation Qd = 100 - 2P. The supply of the product is given by the equation Qs = 2P. Find the equilibrium price and quantity.
A. P = 25, Q = 50
B. P = 50, Q = 25
C. P = 100, Q = 50
D. P = 50, Q = 100
Question 8
The following diagram shows the supply and demand curves for a product. If the price elasticity of supply is 2 and the price elasticity of demand is -3, what is the equilibrium price and quantity?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 9
The central bank of Nigeria has increased the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase in money supply
B. Decrease in money supply
C. No change in money supply
D. Uncertainty about the effect on money supply
Question 10
The demand for a commodity is said to be elastic if the percentage change in the quantity demanded is greater than the percentage change in the price. What is the formula for calculating the price elasticity of demand?
A. ED = \frac{\%\,\text{change in quantity demanded}}{\%\,\text{change in price}}
B. ED = \frac{\%\,\text{change in price}}{\%\,\text{change in quantity demanded}}
C. ED = \frac{\text{change in quantity demanded}}{\text{change in price}}
D. ED = \frac{\text{change in price}}{\text{change in quantity demanded}}
Question 11
A consumer has an indifference curve given by U = 2x + 3y and a budget constraint given by 2x + 3y = 12. What is the optimal consumption bundle?
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 12
A consumer's utility function is given by U = 2x + 3y. If the price of good x is ₦50 and the price of good y is ₦75, find the consumer's budget constraint.
A. ₦150
B. ₦225
C. ₦300
D. ₦375
Question 13
The Nigerian government has implemented a policy to increase agricultural production. Which of the following is a potential benefit of this policy?
A. Increased food security
B. Reduced unemployment
C. Increased foreign exchange earnings
D. Increased government revenue
Question 14
The production function for a firm is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what is the required percentage increase in labor and capital?
A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
C. 30% increase in labor and 30% increase in capital
D. 40% increase in labor and 40% increase in capital
Question 15
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%

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