POST UTME UNN 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Question 2
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What will be the effect on the equilibrium price and quantity of the good?
A. The equilibrium price will increase, and the equilibrium quantity will decrease.
B. The equilibrium price will decrease, and the equilibrium quantity will increase.
C. The equilibrium price will remain unchanged, and the equilibrium quantity will decrease.
D. The equilibrium price will increase, and the equilibrium quantity will remain unchanged.
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases by 10% and its capital (K) remains cons\tant, what will be the effect on the firm's output?
A. The firm's output will increase by 10%.
B. The firm's output will increase by 20%.
C. The firm's output will remain unchanged.
D. The firm's output will decrease by 10%.
Question 4
A firm's demand function for a good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 5
A consumer's indifference curve is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦50 and ₦75 respectively, and the consumer's budget constraint is 2x + 3y = ₦150, what is the consumer's optimal consumption bundle?
A. x = 10, y = 5
B. x = 15, y = 10
C. x = 20, y = 15
D. x = 25, y = 20
Question 6
Determine the equilibrium price and quantity of a perfectly competitive market when the demand function is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10.
A. \( P = 20, Q = 60 \)
B. \( P = 30, Q = 50 \)
C. \( P = 40, Q = 70 \)
D. \( P = 50, Q = 90 \)
Question 7
A country's GDP is ₦100 billion. The government sp\ends ₦20 billion on goods and services. The country's imports are ₦15 billion. What is the country's national income?
A. ₦85 billion
B. ₦90 billion
C. ₦95 billion
D. ₦100 billion
Question 8
A country's GDP at market price is ₦100 billion. The government imposes a 10% sales tax on all goods and services. What will be the country's GDP at factor \cost?
A. ₦90 billion
B. ₦100 billion
C. ₦110 billion
D. ₦120 billion
Question 9
A government budget is given by B = T + I + G. If the government's tax revenue (T) increases by 5% and its interest payments (I) remain cons\tant, what will be the effect on the government's budget deficit?
A. The government's budget deficit will increase by 5%.
B. The government's budget deficit will increase by 10%.
C. The government's budget deficit will remain unchanged.
D. The government's budget deficit will decrease by 5%.
Question 10
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the labor input is 10 units and the capital input is 5 units, how many units of the good will be produced?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 11
A firm's total \cost is given by TC = 100 + 20Q + 2Q^2. If the firm produces 20 units, what is its total \cost?
A. ₦1200
B. ₦1500
C. ₦1800
D. ₦2000
Question 12
A firm is considering investing in a new project with the following cash flows: Year 1: -₦1000, Year 2: ₦500, Year 3: ₦1000, Year 4: ₦1500. What is the net present value (NPV) of the project if the discount rate is 10%?
A. -₦200
B. ₦100
C. ₦500
D. ₦1000
Question 13
A government is considering implementing a policy to reduce inflation. If the current inflation rate is 10% and the government wants to reduce it to 5% within 2 years, determine the required annual reduction in the money supply.
A. ( 5% )
B. ( 10% )
C. ( 15% )
D. ( 20% )
Question 14
A firm is considering investing in a new project with a \cost of ₦5000 and a potential return of ₦6000. If the firm's \cost of capital is 10%, determine the net present value of the project.
A. \( NPV = ₦1000 \)
B. \( NPV = ₦2000 \)
C. \( NPV = ₦3000 \)
D. \( NPV = ₦4000 \)
Question 15
A country's national income is calculated as the sum of all wages, rents, and profits earned by its citizens. If the country's GDP is ₦100 billion and the government's transfer payments are ₦10 billion, what will be the country's national income?
A. ₦90 billion
B. ₦100 billion
C. ₦110 billion
D. ₦120 billion

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