POST UTME AL-HIKMAH UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government imposes a tax of 10% on a good. If the price of the good is $100, what is the new price of the good after the tax is imposed?
A. $90
B. $100
C. $110
D. $120
Question 2
A firm's production function is given by the equation \( Q = 100 + 2x + 0.01x^2 \), where ( x ) is the number of units produced. If the firm's \cost function is given by the equation ( C(x) = 100 + 2x + 0.01x^2 ), find the marginal product of labor.
A. 2
B. 4
C. 6
D. 8
Question 3
A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are ₦5 and ₦10 respectively, and the consumer has a budget of ₦50, what is the optimal consumption bundle?
A. x = 5, y = 3
B. x = 10, y = 5
C. x = 15, y = 10
D. x = 20, y = 15
Question 4
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (20, 10)
B. (15, 15)
C. (10, 20)
D. (5, 25)
Question 5
Consider a firm with a production function given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5, what is the optimal level of labor (L) and capital (K) that the firm should employ?
A. \( L = 100, K = 100 \)
B. \( L = 25, K = 25 \)
C. \( L = 50, K = 50 \)
D. \( L = 200, K = 200 \)
Question 6
A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labor and H is capital. If the firm wants to minimize its \cost while producing 100 units of output, what is the optimal combination of labor and capital?
A. (50, 25)
B. (25, 50)
C. (10, 90)
D. (90, 10)
Question 7
A firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's supply curve is given by Q = 2P - 50, what is the equilibrium price and quantity?
A. P = 25, Q = 50
B. P = 30, Q = 70
C. P = 35, Q = 80
D. P = 40, Q = 90
Question 8
A country is experiencing a recession, and the government is considering implementing a fiscal policy to stimulate economic growth. U\sing the concept of fiscal policy, explain why the government might choose to increase government sp\ending.
A. To increase aggregate demand and stimulate economic growth
B. To reduce the budget deficit and increase government revenue
C. To increase employment opportunities and stimulate economic growth
D. To reduce inflation and stabilize the economy
Question 9
A country is experiencing a recession, and the government is considering implementing a monetary policy to stimulate economic growth. U\sing the concept of monetary policy, explain why the government might choose to reduce interest rates.
A. To increase aggregate demand and stimulate economic growth
B. To reduce the budget deficit and increase government revenue
C. To increase employment opportunities and stimulate economic growth
D. To reduce inflation and stabilize the economy
Question 10
A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal level of x and y that the consumer should consume?
A. \( x = 2, y = 2 \)
B. \( x = 3, y = 1 \)
C. \( x = 4, y = 0 \)
D. \( x = 1, y = 3 \)
Question 11
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor and K is capital. If the firm increases labor from 4 units to 9 units, while keeping capital cons\tant at 16 units, what is the percentage change in \cost?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A firm is considering the introduction of a new product. The demand for the product is expected to be inelastic, and the firm's marginal \cost is increa\sing. U\sing the concept of elasticity of demand, explain why the firm might choose to introduce the new product.
A. Because the firm can increase its revenue by increa\sing the price of the product
B. Because the firm can increase its profit by introducing the new product and capturing a larger market share
C. Because the firm can reduce its \costs by introducing the new product and increa\sing its production
D. Because the firm can increase its market power by introducing the new product and reducing competition
Question 13
A firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's supply curve is given by Q = 2P - 50, what is the price elasticity of demand at a price of ₦20?
A. 0.5
B. 1
C. 2
D. 3
Question 14
A firm has a production function given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm is currently producing 100 units of output with 4 units of labor and 9 units of capital, what is the marginal product of labor?
A. 5
B. 10
C. 15
D. 20
Question 15
The demand for a product is given by the equation \( Q = 100 - 2P \), where ( Q ) is the quantity demanded and ( P ) is the price. If the supply of the product is given by the equation \( Q = 50 + 3P \), find the equilibrium price and quantity.
A. 20
B. 30
C. 40
D. 50

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: