POST UTME ACHIEVERS UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by P = 100 - Q, where P is the price and Q is the quantity sold. The monopolist's marginal \cost curve is given by MC = 20 + 2Q. What is the profit-maximizing quantity sold?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 2
The government of Nigeria has introduced a new policy to increase industrial production. The policy aims to provide incentives to firms that invest in new techno\logy. U\sing the concept of production theory, explain why this policy is likely to increase industrial production.
A. The policy will lead to a decrease in industrial production due to the increase in \cost of production.
B. The policy will lead to an increase in industrial production due to the increase in supply of inputs.
C. The policy will lead to a decrease in industrial production due to the decrease in supply of inputs.
D. The policy will lead to an increase in industrial production due to the increase in demand for industrial products.
Question 3
The government of Nigeria has introduced a new policy to increase revenue from taxation. The policy aims to reduce the tax burden on low-income earners while increa\sing the tax rate on high-income earners. U\sing the concept of elasticity of taxation, explain why this policy is likely to increase revenue.
A. The policy will lead to a decrease in tax revenue due to the reduction in tax burden on low-income earners.
B. The policy will lead to an increase in tax revenue due to the increase in tax rate on high-income earners.
C. The policy will lead to a decrease in tax revenue due to the increase in tax rate on high-income earners.
D. The policy will lead to an increase in tax revenue due to the reduction in tax burden on low-income earners.
Question 4
Agricultural development in Nigeria has been hindered by the lack of access to credit by small-scale farmers. Which of the following policies would most likely address this issue?
A. Establishing a national agricultural bank
B. Providing subsidies to large-scale farmers
C. Implementing a cash crop program
D. Increa\sing tariffs on imported agricultural products
Question 5
The government of Nigeria has implemented a policy to increase the production of rice by providing subsidies to farmers. What is the likely effect of this policy on the price of rice in the short run?
A. The price of rice decreases
B. The price of rice increases
C. The price of rice remains the same
D. The price of rice fluctuates
Question 6
The government of Nigeria has introduced a new policy to increase agricultural production. The policy aims to provide subsidies to farmers who use modern farming techniques. U\sing the concept of production theory, explain why this policy is likely to increase agricultural production.
A. The policy will lead to a decrease in agricultural production due to the increase in \cost of production.
B. The policy will lead to an increase in agricultural production due to the increase in supply of inputs.
C. The policy will lead to a decrease in agricultural production due to the decrease in supply of inputs.
D. The policy will lead to an increase in agricultural production due to the increase in demand for agricultural products.
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the optimal price and quantity for the monopolist?
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 8
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the price at which the quantity demanded is 60?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
A country's GNP is ₦1,500,000,000,000. If the GDP is ₦1,200,000,000,000, what is the net factor income from abroad?
A. ₦300,000,000,000
B. ₦400,000,000,000
C. ₦500,000,000,000
D. ₦600,000,000,000
Question 10
A firm faces a demand curve given by P = 100 - Q, where P is the price and Q is the quantity sold. The firm's marginal \cost curve is given by MC = 20 + 2Q. What is the profit-maximizing price?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 11
A firm produces a good u\sing two inputs, labor and capital. The production function is given by Q = 2L + 3K, where Q is the quantity produced and L and K are the quantities of labor and capital, respectively. If the firm has 10 units of labor and 8 units of capital, what is the marginal product of labor?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 12
A consumer's utility function is given by U = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 12. What is the consumer's optimal bundle of x and y?
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 13
A consumer's budget constraint is given by \( 2x + 3y = 12 \). If the consumer's indifference curve is represented by the equation ( u(x,y) = x + 2y ), what is the consumer's optimal bundle?
A. (3, 4)
B. (4, 3)
C. (5, 2)
D. (6, 1)
Question 14
A firm operates in a perfectly competitive market with a given supply curve. If the price elasticity of demand is 0.5, what is the likely effect on the firm's output?
A. Increase output
B. Decrease output
C. No change in output
D. Increase price
Question 15
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the price of x is ₦2 and the price of y is ₦3, what is the consumer's optimal bundle?
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 4, y = 1
D. x = 1, y = 4

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