POST UTME CALEB UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total \cost is given by the equation TC = 500 + 20x + 2x^2, where x is the number of units produced. What is the marginal \cost when x = 10?
A. 40
B. 50
C. 60
D. 70
Question 2
A monopolistically competitive firm faces a demand curve with the following equation: \( Q = 100 - 2P \). The firm's marginal \cost (MC) is given by \( MC = 10 + 2Q \). If the firm's fixed \cost is ₦500, what is the profit-maximizing price?
A. ₦50
B. ₦75
C. ₦90
D. ₦120
Question 3
The government of Nigeria has implemented policies to promote agricultural development. Which of the following is a major benefit of agricultural development?
A. Increased food security
B. Improved s\tandard of living
C. Increased foreign exchange earnings
D. All of the above
Question 4
Agricultural industrialization in Nigeria has been hindered by the lack of infrastructure. Which of the following is a consequence of this lack of infrastructure?
A. Increased production \costs due to transportation difficulties.
B. Decreased agricultural productivity due to lack of irrigation systems.
C. Increased food prices due to reduced supply.
D. Decreased agricultural exports due to lack of storage facilities.
Question 5
A firm's production function is given by \( Q = 2L^0.5K^0.5 \). If the firm's input prices are \( w = 10 \) and \( r = 20 \), what is the profit-maximizing level of labor?
A. 5
B. 10
C. 15
D. 20
Question 6
A government imposes a tax on imports to reduce the trade deficit. However, the tax leads to a decrease in the quantity of imports. What is the opportunity \cost of this tax?
A. The decrease in the quantity of imports
B. The increase in the price of imports
C. The loss of consumer surplus
D. The loss of government revenue
Question 7
A government's budget constraint is given by G = 100 + 0.5T, where G is government exp\enditure and T is tax revenue. If the government wants to sp\end ₦150, find the required tax revenue.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 8
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 country's consumption is $100, investment is $50, and government sp\ending is $20, what is the GDP?
A. 170
B. 180
C. 190
D. 200
Question 9
The concept of scarcity in economics implies that the unlimited wants of individuals are limited by the available resources. Which of the following is a consequence of scarcity?
A. Increased production \costs due to limited resources.
B. Decreased consumer satisfaction due to limited choices.
C. Increased prices due to high demand.
D. Decreased economic growth due to limited resources.
Question 10
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 4x + 2y = 12, and the prices of the two goods are $2 and $3 respectively, what is the consumer's optimal bundle of goods?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 11
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 elasticity of demand is cons\tant and equal to 2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 10%
C. 5%
D. 15%
Question 12
A consumer has the following utility function: \( U = 2x + 3y \), where x and y are the quantities of goods X and Y respectively. If the prices of goods X and Y are ₦20 and ₦30 respectively, and the consumer's income is ₦100, what is the optimal consumption bundle?
A. (2, 2)
B. (3, 1)
C. (4, 0)
D. (0, 3)
Question 13
A firm's revenue function is given by R(Q) = 100Q - 2Q^2. Find the marginal revenue function.
A. MR = 100 - 4Q
B. MR = 100 - 2Q
C. MR = 100 + 2Q
D. MR = 100 + 4Q
Question 14
The government of Nigeria plans to implement a new tax policy to reduce income inequality. The tax policy involves a progressive tax system where the tax rate increases as income increases. If the tax rate is 10% for income between ₦0 and ₦50,000, 20% for income between ₦50,000 and ₦100,000, and 30% for income above ₦100,000, what is the total tax paid by a person with an income of ₦150,000?
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 15
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.
A. 50 units, ₦150
B. 75 units, ₦100
C. 100 units, ₦50
D. 25 units, ₦200

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