POST UTME COAL CITY UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 10x + 5y = 100, and the price of good x is ₦20, what is the consumer's optimal bundle?
A. x = 2, y = 10
B. x = 3, y = 8
C. x = 4, y = 6
D. x = 5, y = 4
Question 2
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 the consumer's income is ₦1500, determine the optimal quantities of the two goods to consume.
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and it currently uses 100 units of labor and 50 units of capital, what is the firm's current marginal product of labor?
A. 0.5
B. 1
C. 2
D. 5
Question 4
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's consumption function is C = 100 + 0.8Y, its investment function is I = 50 + 0.2Y, its government sp\ending function is G = 200, its export function is X = 500 + 0.5Y, and its import function is M = 300 + 0.3Y, what is the country's GDP when Y = 1000?
A. 1500
B. 2000
C. 2500
D. 3000
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total \cost of producing 4 units of output.
A. ₦400
B. ₦800
C. ₦1200
D. ₦1600
Question 6
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and it currently uses 100 units of labor and 50 units of capital, what is the firm's current total \cost of production?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 7
A firm's demand function for a good is given by Q = 100 - 2P. If the firm's supply function is given by Q = 50 + 5P, what is the equilibrium price and quantity of the good?
A. P = 20, Q = 60
B. P = 30, Q = 70
C. P = 40, Q = 80
D. P = 50, Q = 90
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm has 100 units of labor and 200 units of capital, find the output.
A. 200
B. 300
C. 400
D. 500
Question 9
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦50, what is the quantity demanded?
A. 50
B. 75
C. 100
D. 125
Question 10
A firm's \cost function is given by C = 100 + 2L + 3K, where L is labor and K is capital. If the firm's labor and capital inputs are increased by 10% and 5% respectively, what is the percentage change in total \cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's \cost function is given by C(L, K) = 10L + 20K, what is the firm's optimal input bundle (L, K) that minimizes its \cost?
A. (10, 20)
B. (20, 10)
C. (5, 5)
D. (15, 15)
Question 12
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where 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. 5%
B. 10%
C. 15%
D. 20%
Question 13
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost is MC = 10 + 2Q. What is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 14
A country's balance of payments is given by the equation BOP = X - M + \( F - I \). If the country's export function is X = 500 + 0.5Y, its import function is M = 300 + 0.3Y, its foreign investment function is F = 200 + 0.2Y, and its foreign investment function is I = 100 + 0.1Y, what is the country's balance of payments when Y = 1000?
A. 100
B. 200
C. 300
D. 400
Question 15
A consumer's utility function is given by U = 3x + 2y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 100, and the price of good x is ₦20, what is the consumer's optimal bundle?
A. x = 3, y = 8
B. x = 4, y = 6
C. x = 5, y = 4
D. x = 6, y = 2

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