POST UTME AL-HIKMAH UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a utility function given by ( U(x, y) = x^{2} + 2y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 100, y = 50
B. x = 50, y = 100
C. x = 200, y = 0
D. x = 0, y = 200
Question 2
A firm is operating in a perfectly competitive market with a production function given by \( Q = 2L^{1/2}K^{1/2} \). If the firm's output is 100 units and the wage rate is ₦10 per unit of labor, what is the firm's optimal capital?
A. 100
B. 200
C. 300
D. 400
Question 3
A firm is facing a decrease in demand for its product. Which of the following is a potential response?
A. Increase production to meet the new demand
B. Decrease production to reduce \costs
C. Increase prices to maintain profit margins
D. Invest in new marketing campaigns to increase demand
Question 4
Consider a firm that produces two goods, A and B. The production function for good A is given by Q_A = 2L_A^\( 1/2 \)K_A^\( 1/2 \), and the production function for good B is given by Q_B = 2L_B^\( 1/2 \)K_B^\( 1/2 \). If the firm's capital (K) is 4 units, and the firm's labor (L) is 8 units, what is the optimal allocation of labor between good A and good B?
A. L_A = 4, L_B = 4
B. L_A = 2, L_B = 6
C. L_A = 6, L_B = 2
D. L_A = 8, L_B = 0
Question 5
A firm is operating in a perfectly competitive market with a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is 10, what is the optimal price it should charge?
A. 40
B. 50
C. 60
D. 70
Question 6
A firm is considering investing in a new project. The project has a net present value (NPV) of ₦1,500,000 and a required rate of return of 10%. What is the present value of the project's expected cash flows?
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,100,000
D. ₦2,400,000
Question 7
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 price is ₦50, what is the quantity demanded?
A. 50
B. 100
C. 150
D. 200
Question 8
A country's production function is given by Q = 100K^0.5L^0.5. If the country's capital is 100 and labor is 50, what is the country's output?
A. 1000
B. 1200
C. 1500
D. 2000
Question 9
A country's GDP is 100 billion naira and its GNP is 120 billion naira. What is the value of the net factor income from abroad?
A. 10 billion naira
B. 20 billion naira
C. 30 billion naira
D. 40 billion naira
Question 10
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦50, what is the optimal quantity to produce?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 11
A firm is considering the production of a new product. The firm has a fixed \cost of ₦200,000 and a variable \cost of ₦15 per unit. If the firm produces 30,000 units of the product, what is the total \cost of production?
A. ₦450,000
B. ₦600,000
C. ₦750,000
D. ₦900,000
Question 12
A consumer has a utility function given by ( U(x, y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 100, y = 50
B. x = 50, y = 100
C. x = 200, y = 0
D. x = 0, y = 200
Question 13
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is ₦1,000,000 and the value of imports is ₦800,000, what is the balance of payments?
A. ₦200,000
B. ₦100,000
C. ₦300,000
D. ₦400,000
Question 14
A firm is operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price falls from ₦100 to ₦90, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 15
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where GDP is the Gross Domestic Product, C is the consumption, I is the investment, G is the government sp\ending, X is the value of exports, and M is the value of imports. If the consumption is ₦1,000,000, the investment is ₦500,000, the government sp\ending is ₦200,000, the value of exports is ₦1,000,000, and the value of imports is ₦800,000, what is the GDP?
A. ₦3,000,000
B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000

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