POST UTME COAL CITY UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist's revenue function is given by R(q) = 100q - 2q^2. What is the price when q = 10?
A. 80
B. 90
C. 100
D. 110
Question 2
The government of a country imposes a tax on imports to raise revenue. This tax is an example of a _______ tax.
A. Proportional
B. Progressive
C. Regressive
D. Lump sum
Question 3
A consumer's budget constraint is given by the equation: 2X + 3Y = ₦1,000. The consumer's indifference curve is given by the equation: U = 2X + 3Y. What is the consumer's optimal bundle of goods?
A. (X, Y) = (₦200, ₦300)
B. (X, Y) = (₦300, ₦200)
C. (X, Y) = (₦400, ₦100)
D. (X, Y) = (₦100, ₦400)
Question 4
A consumer's utility function is given by u(x, y) = xy. If the consumer's initial \endowment is (x0, y0) = (2, 3), what is the consumer's optimal bundle of goods?
A. (4, 2)
B. (2, 4)
C. (3, 3)
D. (1, 5)
Question 5
A monopolist is facing a demand curve with the following equation: Q = 100 - 2P. The monopolist's marginal \cost (MC) is ₦50. What is the monopolist's profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units, and the labor input is 4 units, what is the required capital input?
A. 2
B. 4
C. 8
D. 16
Question 7
A firm's production function is given by Q = 2K^0.5L^0.5. If the firm produces 100 units of output, and the price of K is ₦100 per unit, what is the opportunity \cost of one more unit of output?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 8
A firm's average total \cost curve intersects its marginal \cost curve at point E, where MC = ATC. If the firm is currently producing at point D, where MC > ATC, what can be concluded about the firm's short-run production decision?
A. The firm should increase production to point E.
B. The firm should decrease production to point E.
C. The firm should maintain production at point D.
D. The firm should shut down production.
Question 9
A bank has a reserve requirement of 20% and a cash reserve of ₦100,000. If the bank wants to increase its loans by ₦500,000, determine the maximum amount of deposits it can accept.
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 10
The following diagram shows the supply and demand curves for a particular good. If the price of the good is currently ₦50, what is the equilibrium quantity?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 11
A firm is facing a market structure with a demand curve given by Q = 100 - 2P and a marginal \cost curve given by MC = 10. The firm's revenue is given by R = 50Q. 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 12
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y. If the consumer's initial \endowment is (x0, y0) = (2, 3), what is the consumer's optimal bundle of goods?
A. (4, 2)
B. (2, 4)
C. (3, 3)
D. (1, 5)
Question 13
A firm's production function is given by Q = 2L^2 + 3K, where Q is the quantity produced and L and K are the quantities of labor and capital used. If the firm's \cost function is given by C(L, K) = 2L + 3K, find the optimal quantities of L and K.
A. L = 5, K = 10
B. L = 10, K = 5
C. L = 15, K = 15
D. L = 20, K = 20
Question 14
The Nigerian government has introduced a new tax policy to increase revenue. The policy includes a 10% tax on all goods and services. However, some critics argue that the policy will lead to inflation and reduced economic growth. Which of the following is a potential consequence of this policy?
A. Increased government revenue
B. Reduced inflation
C. Increased economic growth
D. Reduced tax evasion
Question 15
Determine the returns to scale for a firm that experiences a 20% increase in all inputs and a 25% increase in output.
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale

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