POST UTME COAL CITY UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer in Nigeria is faced with the following budget constraint: 2X + 3Y = 12, where X is the quantity of good X and Y is the quantity of good Y. The consumer's indifference curve is given by U = 2X + 3Y. If the consumer's income is ₦12, what is the optimal combination of goods X and Y?
A. (2, 2)
B. (3, 1)
C. (4, 0)
D. (0, 4)
Question 2
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 firm increases its labor input from 4 units to 6 units, and its capital input remains cons\tant at 9 units, what is the percentage change in output?
A. -10%
B. 0%
C. 10%
D. 20%
Question 3
A firm in Nigeria is considering the production of two goods, X and Y. The production function for good X is given by Q_X = 2L + 3K, where L is labor and K is capital. The production function for good Y is given by Q_Y = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the opportunity \cost of producing one more unit of good X?
A. The opportunity \cost of producing one more unit of good X is 0.5 units of good Y.
B. The opportunity \cost of producing one more unit of good X is 1 unit of good Y.
C. The opportunity \cost of producing one more unit of good X is 2 units of good Y.
D. The opportunity \cost of producing one more unit of good X is 3 units of good Y.
Question 4
A firm's supply function is given by P = 2Q + 10. If the firm's current output level is Q = 5, what is the firm's supply price?
A. ₦20
B. ₦25
C. ₦30
D. ₦35
Question 5
A monopolist produces a good at a level where the marginal revenue equals the marginal \cost. What is the likely outcome for the consumer?
A. The consumer will benefit from a lower price.
B. The consumer will benefit from a higher price.
C. The consumer will not be affected.
D. The consumer will be worse off.
Question 6
A government imposes a tax on a particular good. Which of the following is a consequence of this tax?
A. The tax revenue is used to finance government exp\enditure.
B. The tax reduces the supply of the good.
C. The tax increases the demand for the good.
D. The tax has no effect on the market equilibrium.
Question 7
A country's balance of payments is given by BOP = X - M. If the country's current account balance is X = ₦100 and the capital account balance is M = ₦50, what is the country's balance of payments?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 8
A firm's \cost function is given by C = 2L + 3K. If the firm's current input levels are L = 4 and K = 9, what is the firm's total \cost?
A. ₦24
B. ₦30
C. ₦36
D. ₦42
Question 9
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 is ₦50, what is the quantity demanded?
A. 20 units
B. 40 units
C. 60 units
D. 80 units
Question 10
A firm's production function is given by \( Q = 2L^0.5K^0.5 \). Find the firm's returns to scale.
A. Increa\sing returns to scale
B. Decrea\sing returns to scale
C. Cons\tant returns to scale
D. Negative returns to scale
Question 11
A farmer in Nigeria has 100 hectares of land to cultivate maize. If the yield per hectare is 2.5 tons, what is the total yield?
A. 250 tons
B. 500 tons
C. 750 tons
D. 1000 tons
Question 12
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
A. (200, 100)
B. (150, 150)
C. (100, 200)
D. (50, 250)
Question 13
A consumer has a budget of ₦10,000 to sp\end on two goods, X and Y. The price of good X is ₦2,000 and the price of good Y is ₦3,000. If the consumer sp\ends all the budget on the two goods, what is the total quantity of good X consumed?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 14
A perfectly competitive market is characterized by the presence of many firms producing a homogeneous product. Which of the following is a consequence of this market structure?
A. Firms have complete control over the market price.
B. Firms produce a differentiated product.
C. Firms are price takers and produce a homogeneous product.
D. Firms have a monopoly over the market.
Question 15
A country's import demand function is given by \( M = 100 - 2P \), where M is the quantity of imports and P is the price of imports. If the price of imports is ₦50, find the quantity of imports.
A. 200
B. 250
C. 300
D. 350

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