POST UTME CHRISTOPHER UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget is ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, find the optimal quantities of the two goods.
A. (10,20)
B. (15,15)
C. (20,10)
D. (25,5)
Question 2
A firm is considering the production of a new product, and the firm's management is trying to decide whether to invest in the production of the new product. U\sing the concept of opportunity \cost, explain why the firm's management might choose not to invest in the production of the new product.
A. The firm's management might choose not to invest in the production of the new product because the opportunity \cost of producing the new product is too high.
B. The firm's management might choose not to invest in the production of the new product because the opportunity \cost of producing the new product is too low.
C. The firm's management might choose not to invest in the production of the new product because the firm does not have the necessary resources to produce the new product.
D. The firm's management might choose not to invest in the production of the new product because the firm does not see a profit in producing the new product.
Question 3
The national income of a country is given by the equation Y = C + I + G, where Y is the national income, C is the consumption exp\enditure, I is the investment exp\enditure, and G is the government exp\enditure. If the consumption exp\enditure is ₦500, the investment exp\enditure is ₦200, and the government exp\enditure is ₦300, find the national income.
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 4
A consumer has the following utility function: U(x, y) = 2x^0.5y^0.5. If the prices of x and y are $10 and $20 respectively, and the consumer has a budget of $100, find the optimal consumption bundle.
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 10, y = 10
D. x = 5, y = 5
Question 5
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 0.5, find the price at which the quantity demanded is 50 units.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
The demand for a particular commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the commodity is given by the equation Qs = 2P - 10, where Qs is the quantity supplied. What is the equilibrium price and quantity of the commodity?
A. Price = ₦20, Quantity = 30 units
B. Price = ₦30, Quantity = 20 units
C. Price = ₦40, Quantity = 10 units
D. Price = ₦50, Quantity = 0 units
Question 7
A firm's revenue function is given by R(x) = 3x^2 - 2x + 1, where x is the number of units sold. If the firm sells 10 units, find the total revenue.
A. ₦30
B. ₦40
C. ₦50
D. ₦60
Question 8
A firm has a \cost function C(x) = 100 + 2x + 0.01x^2. If the firm produces 100 units of output, find the total \cost of production.
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 9
A country is experiencing a recession, and the government is considering implementing a fiscal policy to stimulate economic growth. U\sing the concept of the multiplier effect, explain how the government can use fiscal policy to increase aggregate demand and stimulate economic growth.
A. The government can increase government sp\ending on infrastructure projects.
B. The government can reduce taxes to increase disposable income.
C. The government can increase government sp\ending on social welfare programs.
D. The government can reduce government sp\ending on defense projects.
Question 10
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm produces 20 units, find the total \cost.
A. ₦150
B. ₦250
C. ₦350
D. ₦450
Question 11
A firm's total revenue is given by the equation TR = 100q - 2q^2, where q is the quantity sold. If the firm's total \cost is given by TC = 50q + 10q^2, what is the profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 12
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function given by C(Q) = 2Q^2 + 100Q. Find the profit-maximizing quantity and price.
A. Q = 50, P = ₦75
B. Q = 75, P = ₦50
C. Q = 100, P = ₦25
D. Q = 25, P = ₦100
Question 13
A farmer produces wheat and maize. The production functions are given by W = 2L^0.5 and M = 3L^0.5, where W and M are the quantities of wheat and maize produced, respectively, and L is the labor input. If the farmer's budget constraint is given by 2L^0.5 + 3L^0.5 = ₦100, find the optimal labor input and the quantities of wheat and maize produced.
A. L = 10, W = 20, M = 30
B. L = 15, W = 30, M = 20
C. L = 20, W = 40, M = 10
D. L = 25, W = 50, M = 5
Question 14
A country's balance of payments account shows a trade deficit of ₦500 billion and a capital account surplus of ₦200 billion. What is the country's overall balance of payments position?
A. ₦300 billion surplus
B. ₦300 billion deficit
C. ₦500 billion deficit
D. ₦200 billion surplus
Question 15
A consumer's utility function is given by U(x, y) = 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, find the optimal quantities of x and y.
A. x = 20, y = 10
B. x = 15, y = 15
C. x = 10, y = 20
D. x = 25, y = 5

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