POST UTME UNN 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government of a country has decided to implement a policy of price control to reduce the prices of essential goods. U\sing the concept of supply and demand, explain why the policy may not be effective in achieving its objectives.
A. The policy will lead to a decrease in the supply of essential goods, which will increase the prices.
B. The policy will lead to an increase in the demand for essential goods, which will decrease the prices.
C. The policy will have no effect on the supply and demand of essential goods, but will lead to a decrease in the prices.
D. The policy will lead to a decrease in the demand for essential goods, which will increase the prices.
Question 2
A country's money supply is given by the following equation: M = (r x D), where M is money supply, r is reserve requirement and D is deposits. If the country's reserve requirement is 10% and deposits are $100 billion, what is the money supply?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 3
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer has a budget of ₦1,000 and the prices of x and y are ₦50 and ₦20 respectively, what is the optimal bundle of x and y?
A. x = 10, y = 20
B. x = 15, y = 25
C. x = 20, y = 30
D. x = 25, y = 35
Question 4
A firm's revenue function is given by R(q) = 100q - 2q^2. If the firm produces 20 units, what is the marginal revenue?
A. ₦1,800
B. ₦2,000
C. ₦2,200
D. ₦2,400
Question 5
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the price of labor is $5, what is the optimal level of labor to produce 100 units of the good?
A. 20 units of labor
B. 30 units of labor
C. 40 units of labor
D. 50 units of labor
Question 6
A firm's \cost function is given by C(q) = 2q^2 + 10q + 100. If the firm produces 20 units, what is the total \cost?
A. ₦1,400
B. ₦1,600
C. ₦2,000
D. ₦2,400
Question 7
A country is experiencing a recession, and the government wants to implement a fiscal policy to stimulate economic growth. Which of the following fiscal policy tools would be most effective in increa\sing aggregate demand?
A. Increase government sp\ending on infrastructure projects.
B. Reduce taxes on bu\sinesses to encourage investment.
C. Increase government subsidies to consumers to increase their disposable income.
D. Increase government borrowing to finance public debt.
Question 8
A country's balance of payments is given by the following table:\n\n| Item | 2020 | 2021 | 2022 |\n| --- | --- | --- | --- |\n| Exports | ₦500 billion | ₦550 billion | ₦600 billion |\n| Imports | ₦700 billion | ₦750 billion | ₦800 billion |\n| Current Account Balance | ₦-200 billion | ₦-150 billion | ₦-100 billion |\n\nWhat is the country's current account balance in 2022 as a percentage of its GDP?
A. -1.5%
B. -1.2%
C. -1.0%
D. -0.8%
Question 9
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. U\sing the concept of returns to scale, explain why the firm's production will increase or decrease as the inputs of labor and capital increase.
A. The firm's production will increase as the inputs of labor and capital increase.
B. The firm's production will decrease as the inputs of labor and capital increase.
C. The firm's production will remain cons\tant as the inputs of labor and capital increase.
D. The firm's production will increase as the inputs of labor increase, but decrease as the inputs of capital increase.
Question 10
A firm is operating in a monopoly market with a downward-sloping demand curve. If the firm increases its production, what will happen to its marginal revenue?
A. Marginal revenue will increase
B. Marginal revenue will decrease
C. Marginal revenue will remain cons\tant
D. Marginal revenue will become negative
Question 11
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is $50, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 12
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm's labor and capital are fixed at 100 and 400 respectively, what is the maximum output?
A. 200
B. 400
C. 600
D. 800
Question 13
A firm is producing a good with the following \cost function: C = 2L + 3K. If the firm's output is 10 units, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the total \cost of producing 10 units of output?
A. ₦500
B. ₦1000
C. ₦1500
D. ₦2000
Question 14
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦100 and the prices of the two goods are ₦10 and ₦20 respectively, what is the consumer's optimal bundle of goods?
A. x = 5, y = 3
B. x = 3, y = 5
C. x = 2, y = 4
D. x = 4, y = 2
Question 15
A firm is producing a good with the following \cost and revenue functions: C(q) = 10 + 2q and R(q) = 20q. U\sing the concept of profit maximization, find the level of output that will maximize the firm's profit.
A. q = 5
B. q = 10
C. q = 15
D. q = 20

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