POST UTME UNIOSUN 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm faces a demand curve given by P = 100 - 2Q. The marginal revenue function is given by MR = 100 - 4Q. If the firm's marginal \cost is MC = 20, what is the optimal price to charge?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 2
A firm's demand curve is given by the equation Qd = 100 - 2P. The firm's supply curve is given by the equation Qs = 2P. What is the firm's equilibrium price and quantity?
A. P = 20, Q = 40
B. P = 30, Q = 30
C. P = 40, Q = 20
D. P = 50, Q = 10
Question 3
A firm is producing a good with the following \cost function: C = 100 + 2L + 3K. If the price of labor is $10 per unit and the price of capital is $20 per unit, and the firm is currently producing 100 units of output, what is the total \cost of production?
A. $1200
B. $1500
C. $1800
D. $2000
Question 4
A firm is producing a commodity with a total revenue of ₦100,000 and a total \cost of ₦80,000. If the price elasticity of demand is 2, and the firm wants to maximize its profit, what should be the optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 5
Consider a production function of the form Q = f(K,L) = K^0.4L^0.6. If the marginal product of capital (MPK) is 0.16, and the marginal product of labor (MPL) is 0.24, what is the ratio of the marginal products?
A. 0.4
B. 0.6
C. 0.8
D. 1.0
Question 6
The government of Nigeria has implemented a policy to increase the production of rice. Which of the following is a likely effect of this policy?
A. Increase in rice imports
B. Decrease in rice imports
C. Increase in rice production
D. Decrease in rice production
Question 7
A firm's production function is given by the equation Q = 2L^2 + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 20 units of output, how many units of capital are required?
A. 4
B. 6
C. 8
D. 10
Question 8
The government of Nigeria has introduced a new tax policy to increase revenue. The policy includes a 10% increase in the value-added tax (VAT) and a 5% increase in the income tax rate. What is the likely effect of this policy on the aggregate demand curve?
A. The aggregate demand curve will shift to the left
B. The aggregate demand curve will shift to the right
C. The aggregate demand curve will remain the same
D. The aggregate demand curve will shift downwards
Question 9
The demand for a commodity 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 defined as the percentage change in quantity demanded in response to a 1% change in price, calculate the price elasticity of demand.
A. 0.5
B. -1
C. 2
D. 4
Question 10
A firm operating in a perfectly competitive market produces two goods, A and B. The production function for good A is given by Q_A = 10L^0.5H^0.5, where L and H are the inputs of labor and capital, respectively. The production function for good B is given by Q_B = 5L^0.2H^0.8. If the firm's objective is to maximize profits, which of the following statements is true?
A. The firm will produce more of good A than good B.
B. The firm will produce more of good B than good A.
C. The firm will produce equal quantities of both goods.
D. The firm will produce no goods.
Question 11
A firm faces a demand curve given by P = 50 + 2Q. The marginal revenue function is given by MR = 50 + 4Q. If the firm's marginal \cost is MC = 30, what is the optimal quantity to produce?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 12
A consumer's budget constraint is given by the equation 2x + 3y = 12, where x and y are the quantities of two goods. If the consumer's income is ₦24, what is the maximum amount that can be spent on good y?
A. ₦6
B. ₦8
C. ₦10
D. ₦12
Question 13
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦24, what is the maximum amount that can be spent on good y?
A. ₦6
B. ₦8
C. ₦10
D. ₦12
Question 14
Agricultural development in Nigeria has been hindered by several factors. Which of the following is NOT a major constraint to agricultural development in Nigeria?
A. Land degradation
B. Climate change
C. Lack of access to credit
D. High population growth rate
Question 15
A country's balance of payments (BOP) is in equilibrium when the current account (CA) is equal to the capital account (KA). If the CA is ₦500 billion and the KA is ₦300 billion, what is the net capital outflow?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion

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