POST UTME ACHIEVERS UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) curve is given by MR = 200 - 4P, what is the firm's equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 2
Consider a firm operating in a perfectly competitive market. The firm's marginal revenue (MR) and marginal \cost (MC) curves are given by MR = 100 - 2q and MC = 20 + 3q, respectively. Determine the firm's profit-maximizing output level.
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units and the number of workers is 4, then the number of machines required is _______.
A. 2
B. 4
C. 8
D. 16
Question 4
A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods. If the consumer's utility function is given by U = x + 2y, what is the maximum utility the consumer can achieve?
A. 20
B. 30
C. 40
D. 50
Question 5
The following diagram shows the demand and supply curves for a particular good. If the price of the good is $10, then the quantity demanded is _______.
A. 10
B. 20
C. 30
D. 40
Question 6
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2, where Q is the quantity produced. If the firm produces 50 units, what is the total \cost?
A. 1500
B. 2000
C. 2500
D. 3000
Question 7
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) curve intersects its average revenue (AR) curve at a point where the elasticity of demand is 4, what is the firm's price elasticity of demand at the point of MR = AR?
A. 2
B. 4
C. 6
D. 8
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units, and the price of labor is ₦100 per unit, while the price of capital is ₦200 per unit, what is the firm's total \cost of production?
A. ₦4000
B. ₦6000
C. ₦8000
D. ₦10000
Question 9
The demand for a commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is 20, what is the quantity demanded?
A. 60
B. 70
C. 80
D. 90
Question 10
The government of a country imposes a tax on imported goods to raise revenue. This tax is an example of a _______ tax.
A. Proportional
B. Progressive
C. Regressive
D. Lump sum
Question 11
The concept of scarcity in economics implies that the production of one good is at the expense of another. Which of the following is a correct example of scarcity?
A. A farmer must choose between planting wheat or corn due to limited land.
B. A consumer must choose between buying a new car or a new smartphone.
C. A country must choose between investing in education or healthcare.
D. A bu\siness must choose between hiring more employees or increa\sing production.
Question 12
A firm is considering investing in a new project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦70,000, Year 3: ₦90,000. If the discount rate is 10%, calculate the net present value (NPV) of the project.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 13
A firm's demand for labor is given by the equation Q = 100L^0.5, where Q is the quantity of labor demanded and L is the wage rate. If the wage rate increases by 20%, what is the percentage change in the quantity of labor demanded?
A. -10%
B. 0%
C. 10%
D. 20%
Question 14
A government imposes a tax of ₦10 on a good. If the supply function is given by Q = 100 - 2P and the demand function is given by Q = 50 + 2P, what is the equilibrium price?
A. 20
B. 25
C. 30
D. 35
Question 15
The following diagram shows the production possibilities frontier for a country. If the country chooses to produce 100 units of good X, then the opportunity \cost of producing 1 unit of good Y is _______.
A. 1
B. 2
C. 3
D. 4

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