POST UTME ACHIEVERS UNIVERSITY 2022 Economics | Objective

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Question 1
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by the equation Qs = 2P - 50, find the equilibrium price and quantity.
A. 25, 75
B. 30, 70
C. 35, 65
D. 40, 60
Question 2
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue (MR) is 80, find the value of x.
A. 10
B. 20
C. 30
D. 40
Question 3
A consumer's indifference curve is given by U = 2Q1 + Q2, where U is the level of satisfaction, Q1 and Q2 are the quantities consumed of two goods. If the consumer's current level of satisfaction is 10 units, and the quantity of good 1 consumed is 4 units, find the quantity of good 2 that the consumer is indifferent to.
A. 2
B. 4
C. 6
D. 8
Question 4
A firm's elasticity of demand is given by the equation E_d = \( P_1 - P_2 \) / \( Q_1 - Q_2 \), where E_d is the elasticity of demand, P_1 and P_2 are the initial and final prices, and Q_1 and Q_2 are the initial and final quantities. If the firm's demand curve is given by the equation Qd = 100 - 2P, and the initial and final prices are $10 and $20 respectively, find the elasticity of demand.
A. 0.5
B. 1
C. 2
D. 5
Question 5
A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left, what is the effect on the equilibrium price and quantity?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases
Question 6
The government of Nigeria plans to implement a new budget policy to reduce the budget deficit. The policy involves a 10% reduction in the government's exp\enditure. If the current government exp\enditure is ₦1 trillion, calculate the new government exp\enditure.
A. ₦900 billion
B. ₦1 trillion
C. ₦1.1 trillion
D. ₦1.2 trillion
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units, and the number of workers (L) is 4, find the number of machines (K) required.
A. 4
B. 6
C. 8
D. 10
Question 8
The demand for a product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. The supply of the product is given by the equation Q = 2P + 50. What is the equilibrium price and quantity of the product?
A. P = 25, Q = 50
B. P = 30, Q = 60
C. P = 35, Q = 70
D. P = 40, Q = 80
Question 9
A government is considering implementing a policy to reduce unemployment. The policy involves increa\sing the minimum wage. Which of the following is a likely effect of this policy?
A. Increase in employment
B. Decrease in employment
C. Increase in inflation
D. Decrease in inflation
Question 10
A firm's demand for labor is given by the equation L = 100 - 2P_L, where L is the quantity of labor demanded and P_L is the wage rate. If the wage rate increases from ₦50 to ₦60, what is the change in the quantity of labor demanded?
A. The quantity of labor demanded increases by 10 units.
B. The quantity of labor demanded decreases by 10 units.
C. The quantity of labor demanded remains cons\tant.
D. The quantity of labor demanded increases by 20 units.
Question 11
Consider a production function with cons\tant returns to scale. If the output increases by 20% when the input increases by 10%, what is the value of the output elasticity of scale?
A. 0.5
B. 1.0
C. 1.2
D. 2.0
Question 12
Suppose 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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 13
A firm's production function is given by Q = 2L^2 + 3K, where Q is the quantity of output, L is the quantity of labor, and K is the quantity of capital. If the firm increases the quantity of labor from 4 units to 6 units, while holding the quantity of capital cons\tant, what is the change in the marginal product of labor?
A. The marginal product of labor increases by 2 units.
B. The marginal product of labor decreases by 2 units.
C. The marginal product of labor remains cons\tant.
D. The marginal product of labor increases by 4 units.
Question 14
A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods consumed. The prices of the two goods are $10 and $20 respectively. The consumer's budget is $100. What is the consumer's optimal bundle of goods?
A. x = 5, y = 2
B. x = 3, y = 4
C. x = 4, y = 3
D. x = 2, y = 5
Question 15
A firm's demand function is given by Q = 100 - 2P. If the price of the good is ₦20, calculate the quantity demanded.
A. 80
B. 90
C. 100
D. 110

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