POST UTME UNIPORT 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand curve is given by Qd = 100 - 2P and the supply curve is given by Qs = 2P. Find the equilibrium price and quantity.
A. P = ₦20, Q = 60
B. P = ₦30, Q = 80
C. P = ₦40, Q = 100
D. P = ₦50, Q = 120
Question 2
A monopolist is producing a good with a demand curve given by Q = 100 - 2P and a marginal revenue curve given by MR = 200 - 2Q. What is the price at which the firm will maximize its profit?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 3
A firm is facing a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain the same
D. Total revenue will increase at a decrea\sing rate
Question 4
A country is experiencing a recession. The government decides to implement a fiscal policy to stimulate the economy. Which of the following fiscal policies would be most effective in stimulating the economy?
A. Increa\sing government sp\ending on infrastructure
B. Reducing taxes on corporations
C. Increa\sing government sp\ending on social welfare programs
D. Reducing government sp\ending on defense
Question 5
A firm's supply function is given by Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 6
Consider a firm operating in a perfectly competitive market. The firm's supply curve is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the market equilibrium price is ₦100, what is the firm's supply at that price?
A. 200
B. 250
C. 300
D. 350
Question 7
A government budget is given by the equation ( B(t) = 100 + 2t ), where t is the time period. If the government's initial budget is ( B(0) = 100 ), and the government wants to increase its budget by 10% every year, find the government's budget after 5 years.
A. ( 150 )
B. ( 160 )
C. ( 170 )
D. ( 180 )
Question 8
A government imposes a tax on a firm's output. The firm's supply curve is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the tax is ₦20 per unit, what is the new supply curve?
A. Q = 100 + 2P - 20
B. Q = 100 + 2P + 20
C. Q = 100 - 2P - 20
D. Q = 100 - 2P + 20
Question 9
A consumer's utility function is given by the equation u(x,y) = x^2 + 2y^2. 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?
A. (10, 5)
B. (15, 10)
C. (20, 15)
D. (25, 20)
Question 10
A country's balance of payments (BOP) is given by the following equation: \( BOP = X - M \), where X is the value of exports and M is the value of imports. If the country's exports are 50 billion naira and its imports are 60 billion naira, what is the value of its balance of payments?
A. -10 billion naira
B. -5 billion naira
C. 0 billion naira
D. 5 billion naira
Question 11
A firm is producing a good with a total revenue of ₦4,000 and a total \cost of ₦3,200. If the firm's average revenue is ₦400, what is the price elasticity of demand for the good?
A. 0.5
B. 1
C. 2
D. 3
Question 12
A government imposes a tax on a firm's output. The firm's supply curve is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the tax is ₦20 per unit, what is the new supply curve?
A. Q = 100 + 2P - 20
B. Q = 100 + 2P + 20
C. Q = 100 - 2P - 20
D. Q = 100 - 2P + 20
Question 13
A monopolist is producing a good with a demand curve given by Q = 150 - 3P and a marginal revenue curve given by MR = 300 - 3Q. What is the price at which the firm will maximize its profit?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 14
The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers and increa\sing the import duty on rice. Assuming the demand for rice is inelastic, what will be the effect of the policy on the domestic price of rice?
A. The domestic price of rice will decrease.
B. The domestic price of rice will increase.
C. The domestic price of rice will remain the same.
D. There will be no effect on the domestic price of rice.
Question 15
A firm's production function is given by the equation \( Q = 2L^2 + 3K^2 \), where L is the labor input and K is the capital input. If the firm's initial labor input is \( L_0 = 10 \) and capital input is \( K_0 = 20 \), and the firm wants to increase its output by 20% every year, find the firm's new labor and capital inputs after 5 years.
A. \( L = 20, K = 40 \)
B. \( L = 30, K = 60 \)
C. \( L = 40, K = 80 \)
D. \( L = 50, K = 100 \)

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