POST UTME CALEB UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 2
A country's balance of payments is given by the equation BOP = X - M + \( F - I \). If the country's exports, imports, foreign investment, and domestic investment are ₦100 billion, ₦80 billion, ₦20 billion, and ₦30 billion respectively, what is the country's balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 3
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 100 and the value of imports is 80, what is the balance of payments?
A. 10
B. 20
C. 30
D. 40
Question 4
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦50 and ₦75 respectively, and if the consumer's budget constraint is given by 50x + 75y = ₦150, what is the consumer's optimal bundle of goods?
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 4, y = 1
D. x = 1, y = 4
Question 5
A consumer's indifference curve is given by U(x, y) = 2x + 3y, where x and y are the consumer's consumption of good x and good y, respectively. If the consumer's current consumption bundle is (x, y) = (10, 5), calculate the consumer's marginal rate of substitution (MRS).
A. 1
B. 2
C. 3
D. 4
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 25 and K = 16, find the returns to scale.
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale
Question 7
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, find the consumer surplus.
A. ₦2500
B. ₦2000
C. ₦3000
D. ₦4000
Question 8
A country's government budget constraint is given by B = T + P, where B is the budget, T is the tax revenue, and P is the public exp\enditure. If the government budget is ₦100 billion, tax revenue is ₦50 billion, and public exp\enditure is ₦30 billion, what is the deficit?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 9
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦5 trillion, and if the values of C, I, G, X, and M are ₦1.5 trillion, ₦500 billion, ₦1 trillion, ₦1.2 trillion, and ₦800 billion respectively, what is the value of the country's net exports?
A. ₦200 billion
B. ₦300 billion
C. ₦400 billion
D. ₦500 billion
Question 10
The supply of a commodity is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the demand for the commodity is given by the equation Qd = 100 - 2P, what is the equilibrium price and quantity?
A. P = 25, Q = 75
B. P = 30, Q = 80
C. P = 35, Q = 85
D. P = 40, Q = 90
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, find the marginal product of labor and the marginal product of capital.
A. MP_L = 0.1875, MP_K = 0.25
B. MP_L = 0.25, MP_K = 0.1875
C. MP_L = 0.1875, MP_K = 0.125
D. MP_L = 0.125, MP_K = 0.1875
Question 12
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦100,000, what is the firm's optimal level of output?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 13
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦100,000, what is the firm's optimal level of output?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 14
A firm operating in a perfectly competitive market produces a good with the following \cost and revenue functions: C(q) = 10q + 100 and R(q) = 20q. Find the profit-maximizing quantity and price of the good.
A. q = 5, P = 30
B. q = 10, P = 20
C. q = 15, P = 15
D. q = 20, P = 10
Question 15
A consumer's indifference curve is given by U(x, y) = 2x + 3y, where x and y are the consumer's consumption of good x and good y, respectively. If the consumer's current consumption bundle is (x, y) = (10, 5), calculate the consumer's marginal rate of substitution (MRS).
A. 1
B. 2
C. 3
D. 4

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