POST UTME AL-HIKMAH UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's \cost function is given by C = 10L + 20K, what is the firm's profit-maximizing level of labor and capital?
A. (5,5)
B. (10,10)
C. (15,15)
D. (20,20)
Question 2
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the maximum output?
A. 20
B. 25
C. 30
D. 35
Question 3
The balance of payments (BOP) of a country is a statistical statement that summarizes all economic transactions between the residents and non-residents of a country over a specific period of time. Discuss the components of BOP.
A. Current account, capital account, and financial account are the components of BOP.
B. Current account, capital account, and financial account are not the components of BOP.
C. Current account and capital account are the components of BOP.
D. Current account and financial account are the components of BOP.
Question 4
A firm is facing a downward-sloping demand curve for its product. If the firm's marginal revenue is ₦100 and its marginal \cost is ₦80, what is the profit-maximizing quantity?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 5
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment and G is the government sp\ending. If the consumption is ₦100 billion, the investment is ₦50 billion and the government sp\ending is ₦20 billion, what is the GDP?
A. ₦170 billion
B. ₦180 billion
C. ₦190 billion
D. ₦200 billion
Question 6
Agricultural sector is the backbone of Nigeria's economy. Discuss the role of agricultural sector in Nigeria's economic development.
A. Agricultural sector is the backbone of Nigeria's economy and plays a crucial role in the country's economic development.
B. Agricultural sector is not impor\tant in Nigeria's economic development.
C. Agricultural sector is a major source of employment in Nigeria.
D. Agricultural sector is a major contributor to Nigeria's GDP.
Question 7
A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 100, what is the consumer's optimal bundle of goods?
A. (10,10)
B. (15,5)
C. (20,0)
D. (0,20)
Question 8
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's consumption, investment, government sp\ending, exports, and imports are 100, 50, 20, 80, and 60 respectively, what is the country's GDP?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 9
A country's government is considering a tax on a particular good. What is the effect of this tax on the supply curve?
A. The supply curve shifts to the left
B. The supply curve shifts to the right
C. The supply curve remains unchanged
D. The supply curve becomes vertical
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. What is the marginal product of labor?
A. \frac{L^{0.5}K^{0.5}}{2}
B. \frac{L^{0.5}K^{0.5}}{4}
C. \frac{L^{0.5}K^{0.5}}{6}
D. \frac{L^{0.5}K^{0.5}}{8}
Question 11
A country's balance of payments is in equilibrium when its current account and capital account are balanced. Which of the following is a correct statement about the balance of payments?
A. The balance of payments is a statement of a country's international transactions over a specific period.
B. The balance of payments is a statement of a country's international transactions over a specific period, including current and capital account transactions.
C. The balance of payments is a statement of a country's international transactions over a specific period, including current account transactions only.
D. The balance of payments is a statement of a country's international transactions over a specific period, including capital account transactions only.
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 10% and 20% respectively, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 13
A firm's \cost function is given by the equation C = 2L + 3K, where C is the \cost, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the minimum \cost?
A. ₦20
B. ₦25
C. ₦30
D. ₦35
Question 14
The government of Nigeria imposes a tax of 10% on all imports. If the value of imports is ₦100,000, calculate the amount of tax paid.
A. ₦10,000
B. ₦5,000
C. ₦15,000
D. ₦20,000
Question 15
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 50?
A. ₦50
B. ₦75
C. ₦100
D. ₦125

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