POST UTME UNIOSUN 2020 Economics | Objective

Are you preparing for POST UTME UNIOSUN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
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.
Correct A. 0.5
B. -1
C. 2
D. 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
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
Correct B. ₦60
C. ₦70
D. ₦80

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A central bank is considering a monetary policy to reduce inflation. If the money supply is given by the equation M = 1000 + 0.5Y, where M is the money supply and Y is the national income, and the inflation rate is 5%, what should be the optimal money supply?
A. ₦5000
B. ₦6000
Correct C. ₦7000
D. ₦8000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A firm is producing a commodity with a marginal revenue of ₦100 and a marginal \cost of ₦80. If the price elasticity of demand is 2, and the firm wants to maximize its profit, what should be the optimal quantity?
A. 10
B. 20
Correct C. 30
D. 40

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A central bank is considering a monetary policy to reduce unemployment. If the money supply is given by the equation M = 1000 + 0.5Y, where M is the money supply and Y is the national income, and the unemployment rate is 10%, what should be the optimal money supply?
A. ₦5000
Correct B. ₦6000
C. ₦7000
D. ₦8000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is 100L + 200K = 1000, determine the optimal values of L and K.
Correct A. L = 10, K = 5
B. L = 5, K = 10
C. L = 20, K = 2
D. L = 2, K = 20

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A country's import demand function is given by M = 100 - 2P, where M is the quantity of imports and P is the price of imports. If the price of imports is ₦50 per unit, determine the quantity of imports.
Correct A. M = 50
B. M = 100
C. M = 150
D. M = 200

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A firm's supply function is given by Q = 50 + 2P, where Q is output and P is price. If the price of output is ₦50 per unit, determine the quantity supplied.
A. Q = 50
Correct B. Q = 100
C. Q = 150
D. Q = 200

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A country's export supply function is given by X = 100 + 3P, where X is the quantity of exports and P is the price of exports. If the price of exports is ₦30 per unit, determine the quantity supplied.
A. X = 100
Correct B. X = 130
C. X = 160
D. X = 190

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A firm's production function is given by Q = 3L^0.5K^0.5, where Q is output, L is labor and K is capital. If the price of labor is ₦150 per unit and the price of capital is ₦300 per unit, and if the firm's budget constraint is 150L + 300K = 1500, determine the optimal values of L and K.
Correct A. L = 10, K = 5
B. L = 5, K = 10
C. L = 20, K = 2
D. L = 2, K = 20

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers by 20%. What is the likely effect of this policy on the demand for fertilizers?
A. The demand for fertilizers will increase due to the increased price
Correct B. The demand for fertilizers will decrease due to the increased price
C. The demand for fertilizers will remain the same due to the increased price
D. The demand for fertilizers will increase due to the increased access to credit

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A firm is producing a good with the following production function: Q = 2L^0.5 * K^0.5. 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 marginal product of labor?
Correct A. 5 units
B. 10 units
C. 15 units
D. 20 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
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
Correct 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

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
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
Correct C. $1800
D. $2000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
The government of Nigeria has introduced a new policy to increase the production of a specific good. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of the good by 20%. What is the likely effect of this policy on the supply curve?
A. The supply curve will shift to the left
Correct B. The supply curve will shift to the right
C. The supply curve will remain the same
D. The supply curve will shift downwards

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
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?
Correct A. 0.4
B. 0.6
C. 0.8
D. 1.0

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A country's GDP is ₦1.2 trillion, and its GNP is ₦1.3 trillion. What is the net factor income from abroad?
A. ₦100 billion
B. ₦200 billion
Correct C. ₦300 billion
D. ₦400 billion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A firm is considering two production techno\logies: one with a cons\tant returns to scale (CRS) and another with a decrea\sing returns to scale (DRS). Which techno\logy is more likely to be adopted in a market with a large number of firms?
A. CRS
Correct B. DRS
C. Both are equally likely
D. Neither is likely

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
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
Correct D. ₦400 billion

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A firm is considering investing in a new project with a net present value (NPV) of ₦500 million. If the \cost of capital is 10%, what is the internal rate of return (IRR) of the project?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
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.
Correct 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.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A monopolist 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 quantity to produce?
A. 20 units
B. 30 units
Correct C. 40 units
D. 50 units

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
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
Correct C. 30 units
D. 40 units

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
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
Correct C. ₦100
D. ₦110

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
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 price to charge?
A. ₦60
B. ₦70
Correct C. ₦80
D. ₦90

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

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:
Chat with Support