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POST UTME UNN 2017 Economics | Objective

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Question 1

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.

Correct C. The opportunity \cost is the marginal \cost.

D. The opportunity \cost is the price of the good plus the marginal revenue.

Correct Answer: C

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Question 2

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.

Correct D. The supply curve shifts downward.

Correct Answer: D

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Question 3

A consumer's demand for a good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. What is the price elasticity of demand at a price of ₦50?

Correct A. The price elasticity of demand is 0.5.

B. The price elasticity of demand is 1.

C. The price elasticity of demand is 2.

D. The price elasticity of demand is 5.

Correct Answer: A

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Question 4

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?

Correct A. The first process.

B. The second process.

C. Both processes are equally \cost-effective.

D. Neither process is \cost-effective.

Correct Answer: A

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Question 5

A government is considering a policy to increase agricultural production in a country. Which of the following policies would be most effective in achieving this goal?

A. Providing subsidies to farmers.

Correct B. Investing in irrigation infrastructure.

C. Implementing a policy of price controls.

D. Increa\sing the minimum wage for farmers.

Correct Answer: B

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Question 6

A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units, what is the total \cost?

A. 100

Correct B. 120

C. 140

D. 160

Correct Answer: B

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Question 7

A country's GDP is $100 billion, and its GNP is $120 billion. What is the net factor income from abroad?

Correct A. $20 billion

B. $30 billion

C. $40 billion

D. $50 billion

Correct Answer: A

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Question 8

A monopolist faces a demand curve given by p = 100 - 2q. The firm's marginal \cost is $10. What is the profit-maximizing quantity?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 9

A consumer's utility function is given by u(x, y) = 2x + 3y. If the consumer's income is $100 and the prices of x and y are $5 and $10 respectively, what is the consumer's optimal bundle?

A. (10, 5)

Correct B. (15, 10)

C. (20, 15)

D. (25, 20)

Correct Answer: B

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Question 10

A country's government imposes a tax of $10 on a firm's output. The firm's supply curve is given by q = 100 - p. What is the new supply curve after the tax?

Correct A. q = 100 - p - 10

B. q = 100 - p + 10

C. q = 100 + p - 10

D. q = 100 + p + 10

Correct Answer: A

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Question 11

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

Correct B. ₦8000

C. ₦12000

D. ₦16000

Correct Answer: B

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Question 12

A consumer's utility function is given by U = 2x + 3y. If the price of good x is ₦50 per unit and the price of good y is ₦75 per unit, calculate the consumer's budget constraint.

A. x + 3y = 30

Correct B. 2x + y = 20

C. x + 2y = 20

D. x + y = 15

Correct Answer: B

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Question 13

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

Correct C. ₦800

D. ₦900

Correct Answer: C

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Question 14

A country's GDP is given by GDP = C + I + G + $ X - M $. If the country's consumption is ₦1000 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦500 billion, and imports are ₦400 billion, calculate the country's GDP.

A. ₦2300 billion

B. ₦2400 billion

Correct C. ₦2500 billion

D. ₦2600 billion

Correct Answer: C

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Question 15

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

Correct B. 20 units

C. 30 units

D. 40 units

Correct Answer: B

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Question 16

A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?

Correct A. 5%

B. 10%

C. 20%

D. 30%

Correct Answer: A

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Question 17

A consumer's utility function is given by 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?

Correct A. (200, 100)

B. (150, 150)

C. (100, 200)

D. (50, 250)

Correct Answer: A

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Question 18

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?

Correct A. Q = 2P + 15

B. Q = 2P + 12

C. Q = 2P + 20

D. Q = 2P + 25

Correct Answer: A

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Question 19

A firm is facing a perfectly competitive market. The firm's \cost function is given by C(Q) = 2Q^2 + 10Q. If the firm's revenue function is given by R(Q) = 10Q^2, what is the firm's profit-maximizing output?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 20

A government is considering a policy to reduce poverty. The government's budget constraint is given by B = 1000 + 0.5G, where B is the budget and G is the government exp\enditure. If the government wants to allocate ₦500 to poverty reduction, what is the maximum amount the government can allocate to other programs?

A. ₦250

Correct B. ₦300

C. ₦350

D. ₦400

Correct Answer: B

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Question 21

The elasticity of demand for a commodity is given by the formula $ epsilon = \frac{Delta Q}{Delta P} \times \frac{P}{Q} $. If the price of the commodity increases by 10% and the quantity demanded decreases by 15%, calculate the elasticity of demand.

Correct A. 0.75

B. 1.25

C. 1.5

D. 2.0

Correct Answer: A

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Question 22

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

Correct B. 6L

C. 8L

D. 10L

Correct Answer: B

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Question 23

A consumer has a utility function $ U = 2x + 3y $, where x and y are the quantities of two goods. If the price of good x is ₦50 per unit and the price of good y is ₦100 per unit, calculate the marginal utility of good x.

Correct A. 2

B. 4

C. 6

D. 8

Correct Answer: A

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Question 24

A firm is operating in a perfectly competitive market with a demand curve $ P = 100 - 2Q $ and a supply curve $ P = 20 + Q $. If the firm produces 50 units of the good, calculate the price of the good.

A. ₦60

B. ₦80

Correct C. ₦100

D. ₦120

Correct Answer: C

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Question 25

A firm is operating in a monopoly market with a demand curve $ P = 100 - Q $ and a marginal revenue function $ MR = 100 - 2Q $. If the firm produces 20 units of the good, calculate the price of the good.

A. ₦80

B. ₦90

Correct C. ₦100

D. ₦110

Correct Answer: C

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