>Economcs: UNILAG POST UME 2007

>46. The consumption function of an economy with no government sector and no foreign trade is C = W120 + 0. 6Y.
(C = aggregate consumption and Y nation income).
If investment expenditure is autonomous and equal to W 280, what is the equilibrium level of income?
Answer: _______________

47. The winner of a T.V quiz show is offered a choice of either #1000 or the contents of one or other of two sealed boxes. She's told that one box contains#2,500 and that the other box is empty.
What is the opportunity cost to the individual of opting for the #1000 price?
Answer: ________________

48. Which schedule shows the maximum prices at which a firm would be able to sell any given level of output?
Answer: ________________

49. In which circumstance will an indirect tax fall entirely upon the producers of a commodity?
Answer: _______________

50. In an economy with no government, the value of the investment multiplieris 3 by how much will consumption increase, if investment increases by #300?
Answer:_______________

51. Which of the following is a normative statement?
Answer: _______________

52. An employer currently employs 200 workers. The marginal cost of hiring an additional worker is N50 if the employees current wage bill is =N= 20,000, byhow much will the wage paid per worker new to be increased in order to attract one more worker?
Answer: ____________

53. Given the cost function C = 160 + 36q, what is the average cost of 20 units of output?
Answer: _____________

54. When the important of a commodity is limited to a definite quantity, the control means used known as
Answer: ____________

56. When is a profit – maximizing firm in equilibrium?
Answer: ____________

57. Which of the following will be likely to result from an open market purchase of securities by the central bank?
Answer: ____________

58. Which of the following explains how changes in national income may be brought about by changes in investment?
Answer: ___________

59. Average earnings in manufacturing increase by 8%. While hourly wage rates increase by only 6%
What could account for this?
Answer: _______________

SUGGESTED ANSWERS, 2005
27. government expenditure
28. regressive
29. diminishing return
30. labour
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