POST UTME UNN 2017 Economics | Objective

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Question 1
A firm's revenue function is given by R = 100x - 2x^2. If the firm produces 10 units of output, calculate the marginal revenue.
A. ₦600
B. ₦700
C. ₦800
D. ₦900
Question 2
A government is considering a tax on a particular good. The supply curve of the good is given by Q = 2P + 10. If the government imposes a tax of ₦5 per unit, what is the new supply curve?
A. Q = 2P + 15
B. Q = 2P + 12
C. Q = 2P + 20
D. Q = 2P + 25
Question 3
A government imposes a tax on a firm to raise revenue. What is the effect of this tax on the firm's supply curve?
A. The supply curve shifts to the left.
B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve shifts downward.
Question 4
A monopolist faces a market demand curve given by \( Q = 100 - 2P \). The monopolist's marginal \cost curve is given by \( MC = 10 + 2Q \). Find the profit-maximizing price and quantity.
A. \( P = 40, Q = 60 \)
B. \( P = 50, Q = 70 \)
C. \( P = 60, Q = 80 \)
D. \( P = 70, Q = 90 \)
Question 5
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is GDP, C is consumption, I is investment, G is government sp\ending, X is exports and M is imports. If the country's GDP is 100 billion, consumption is 60 billion, investment is 20 billion, government sp\ending is 10 billion, exports are 30 billion and imports are 20 billion, what is the value of X?
A. 40 billion
B. 50 billion
C. 60 billion
D. 70 billion
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total \cost of producing 16 units of output.
A. ₦4000
B. ₦8000
C. ₦12000
D. ₦16000
Question 7
A firm operating in a perfectly competitive market is said to be in a state of equilibrium when the marginal revenue equals the marginal \cost. What is the opportunity \cost of producing one more unit of the good?
A. The opportunity \cost is the price of the good.
B. The opportunity \cost is the marginal revenue.
C. The opportunity \cost is the marginal \cost.
D. The opportunity \cost is the price of the good plus the marginal revenue.
Question 8
A firm is producing a good with a production function \( Q = 2L^2 + 3K^2 \), where 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, calculate the marginal product of labor.
A. 4L
B. 6L
C. 8L
D. 10L
Question 9
The production function for a firm is given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital and L is labor. If the firm wants to increase output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
A firm's supply function is given by Q = 2P + 10. If the price of the firm's output is ₦50 per unit, calculate the quantity supplied.
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 11
A country's balance of payments is in equilibrium when the current account and capital account are equal. Which of the following is a correct statement?
A. The current account is always equal to the capital account.
B. The current account is always greater than the capital account.
C. The capital account is always greater than the current account.
D. The balance of payments is always in equilibrium.
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, and the wage rate is $10 per hour, what is the minimum \cost of production?
A. $500
B. $1000
C. $2000
D. $5000
Question 13
A firm is considering two different production processes to produce a good. The first process has a fixed \cost of ₦1000 and a variable \cost of ₦50 per unit. The second process has a fixed \cost of ₦500 and a variable \cost of ₦75 per unit. Which process should the firm choose if it wants to minimize its \costs?
A. The first process.
B. The second process.
C. Both processes are equally \cost-effective.
D. Neither process is \cost-effective.
Question 14
A country is experiencing an inflation rate of 5% per annum. If the country's central bank wants to reduce the inflation rate to 3% per annum, what should be the target interest rate?
A. 5%
B. 6%
C. 7%
D. 8%
Question 15
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 100L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor and K is capital. If the firm wants to increase output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%

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