POST UTME UNN 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of returns to scale is an impor\tant concept in production theory. Which of the following best describes the relationship between returns to scale and the production function?
A. Returns to scale are a measure of the change in output resulting from a change in input
B. The production function determines the returns to scale
C. Returns to scale are a consequence of the production function
D. The production function is a measure of the returns to scale
Question 2
A firm is producing a good u\sing two inputs: labor and capital. The production function is given by Q = 2L^0.5K^0.5, where Q is the quantity of the good produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 200 units of capital, how much of the good will be produced?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 3
The government of a country has decided to implement a new tax policy to reduce income inequality. The policy involves a progressive tax system where the tax rate increases as the income level increases. However, the tax rate is not uniform across all income levels. Instead, it is divided into three brackets: 10% for income levels up to ₦500,000, 20% for income levels between ₦500,001 and ₦1,000,000, and 30% for income levels above ₦1,000,000. If a person has an income of ₦1,200,000, how much tax will they pay under this policy?
A. ₦240,000
B. ₦300,000
C. ₦360,000
D. ₦420,000
Question 4
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 ₦20 and ₦30 respectively, determine the optimal quantities of x and y that the consumer will purchase.
A. x = 2, y = 1
B. x = 3, y = 2
C. x = 4, y = 3
D. x = 5, y = 4
Question 5
A firm is considering two different production techno\logies to produce a certain good. The first techno\logy has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. The second techno\logy has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the firm produces 10,000 units of the good, which techno\logy will result in lower total \cost?
A. Techno\logy 1
B. Techno\logy 2
C. Both techno\logies will result in the same total \cost
D. Neither techno\logy will result in lower total \cost
Question 6
A firm's supply curve is given by the equation Qs = 2P^2, where Qs is the quantity supplied and P is the price. If the price increases from ₦10 to ₦20, by what percentage will the quantity supplied increase?
A. 50%
B. 60%
C. 70%
D. 80%
Question 7
A firm's production function is given by the equation Q = 100K^0.5L^0.5, where Q is the quantity produced, K is the capital and L is the labor. If the firm has 100 units of capital and 100 units of labor, what is the quantity produced?
A. 100
B. 200
C. 300
D. 400
Question 8
The concept of opportunity \cost is an impor\tant concept in economics. Which of the following best describes the opportunity \cost of a choice?
A. The opportunity \cost of a choice is the \cost of the next best alternative
B. The opportunity \cost of a choice is the \cost of the current choice
C. The opportunity \cost of a choice is the benefit of the current choice
D. The opportunity \cost of a choice is the benefit of the next best alternative
Question 9
A government is considering a policy to reduce the price of a commodity by 10%. Determine the effect of this policy on the consumer's surplus.
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 10
A firm's demand for labor is given by the equation Qd = 100L^\( -1/2 \), where Qd is the quantity of labor demanded and L is the wage rate. If the wage rate increases from ₦100 to ₦150, what is the new quantity of labor demanded?
A. 50
B. 75
C. 100
D. 125
Question 11
A country is experiencing a recession, and the government wants to implement a monetary policy to stimulate economic growth. The central bank has a money supply of ₦100 billion and wants to increase it by 10%. If the central bank buys ₦10 billion worth of government bonds from the market, what is the new money supply?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 12
A country's government imposes a tax on imports to raise revenue. The tax rate is 15% of the import value. If the country imports goods worth ₦1,500,000, what is the amount of tax paid?
A. ₦225,000
B. ₦187,500
C. ₦150,000
D. ₦225,000
Question 13
A monopolistically competitive firm faces 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 unchanged
D. Total revenue will increase at first, then decrease
Question 14
The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit of the good decreases. Which of the following is a consequence of this law?
A. The total utility of the good increases at a decrea\sing rate
B. The marginal utility of the good increases at an increa\sing rate
C. The total utility of the good decreases at a decrea\sing rate
D. The marginal utility of the good decreases at a decrea\sing rate
Question 15
A country's GDP can be calculated u\sing the following formula: \( GDP = C + I + G + \( X - M \ \) ). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, what is the country's GDP?
A. ₦1,300 billion
B. ₦1,500 billion
C. ₦1,700 billion
D. ₦2,000 billion

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