POST UTME CALEB UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C = 100 + 2Q + 0.01Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 100 units, what is the total \cost?
A. ₦1200
B. ₦1300
C. ₦1400
D. ₦1500
Question 2
A consumer's budget constraint is given by 2X + 3Y = 12. What is the opportunity \cost of good X in terms of good Y?
A. 2Y
B. 3Y
C. 4Y
D. 6Y
Question 3
A consumer's indifference curve is downward sloping. What does this imply about the consumer's preferences?
A. The consumer is risk-averse.
B. The consumer is risk-neutral.
C. The consumer prefers more of good X to less of good X.
D. The consumer prefers more of good Y to less of good Y.
Question 4
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 supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied, what is the equilibrium price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 5
In a perfectly competitive market, the equilibrium price and quantity are determined by the intersection of the market demand and supply curves. If the demand curve shifts to the left, what will happen to the equilibrium price and quantity?
A. The equilibrium price will increase, and the equilibrium quantity will decrease.
B. The equilibrium price will decrease, and the equilibrium quantity will increase.
C. The equilibrium price will remain the same, and the equilibrium quantity will decrease.
D. The equilibrium price will increase, and the equilibrium quantity will increase.
Question 6
A country's balance of payments account shows a trade deficit of $10 billion and a capital account surplus of $20 billion. What is the overall balance of payments position?
A. $10 billion deficit
B. $20 billion surplus
C. $30 billion deficit
D. $40 billion surplus
Question 7
A firm's revenue function is given by R = 100L + 200K, where R is revenue, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in revenue?
A. 10%
B. 12%
C. 15%
D. 18%
Question 8
A central bank increases the reserve requirement for commercial banks. What will happen to the money supply?
A. Money supply increases
B. Money supply decreases
C. Money supply remains the same
D. Money supply increases, then decreases
Question 9
A consumer's indifference curve is steeper than another consumer's indifference curve. What can be concluded about the two consumers?
A. The first consumer is more risk-averse
B. The first consumer is more risk-loving
C. The first consumer has a higher marginal rate of substitution
D. The first consumer has a lower marginal rate of substitution
Question 10
A country's import demand function is given by M = 100 - 2P + 3Y, where M is imports, P is price, and Y is income. If the price of imports increases by 10% and income increases by 5%, what is the percentage change in imports?
A. -5%
B. -7%
C. -10%
D. -12%
Question 11
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its balance of trade?
A. ₦5 billion surplus
B. ₦5 billion deficit
C. ₦10 billion surplus
D. ₦10 billion deficit
Question 12
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 13
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = ₦100, what is the consumer's optimal bundle of goods?
A. x = 20, y = 10
B. x = 10, y = 20
C. x = 15, y = 15
D. x = 25, y = 5
Question 14
A firm is producing a good with a cons\tant marginal \cost and a downward-sloping marginal revenue curve. If the firm increases the price of the good, what will happen to the quantity produced?
A. Quantity produced increases
B. Quantity produced decreases
C. Quantity produced remains the same
D. Quantity produced increases, then decreases
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. What is the return to scale of this production function?
A. Increa\sing returns to scale
B. Decrea\sing returns to scale
C. Cons\tant returns to scale
D. No returns to scale

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: