POST UTME COVENANT UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 3L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm hires 25 units of labor and 16 units of capital, what is the marginal product of labor?
A. 0.5 units of output
B. 1 unit of output
C. 1.5 units of output
D. 2 units of output
Question 2
A perfectly competitive market has a supply curve given by Qs = 100 - 2P and a demand curve given by Qd = 200 - P. Find the equilibrium price and quantity.
A. P = 50, Q = 100
B. P = 75, Q = 125
C. P = 100, Q = 150
D. P = 125, Q = 175
Question 3
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. ₦1200
B. ₦1800
C. ₦2000
D. ₦2200
Question 4
A government imposes a tax of ₦5 on a commodity. If the price of the commodity is ₦20, and the quantity demanded is 10 units, what is the tax revenue?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 5
Suppose the demand for a product is given by the equation \( Q_d = 100 - 2P \) and the supply is given by \( Q_s = 2P - 10 \). Find the equilibrium price and quantity.
A. \( P = 15, Q = 25 \)
B. \( P = 20, Q = 30 \)
C. \( P = 25, Q = 35 \)
D. \( P = 30, Q = 40 \)
Question 6
A firm has a production function given by \( Y = 2L^2 + 10L \) and a labor supply function given by \( L = 5 + 2W \). 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
At a price of ₦200, the quantity demanded of a commodity is 100 units. At a price of ₦300, the quantity demanded is 50 units. U\sing the midpoint formula, calculate the equilibrium price and quantity. Assume the market is in equilibrium.
A. ₦250, 75 units
B. ₦275, 62.5 units
C. ₦225, 87.5 units
D. ₦275, 75 units
Question 8
A country's balance of payments is given by the equation BOP = X - M + \( F - I \), where X is exports, M is imports, F is foreign aid, and I is investment. If the country's BOP is ₦10 billion, X = ₦20 billion, M = ₦15 billion, F = ₦5 billion, and I = ₦10 billion, what is the value of F?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 9
A firm's total revenue is given by the equation TR = 20x + 30x^2, where x is the number of units sold. If the firm sells 10 units, what is the total revenue?
A. ₦500
B. ₦550
C. ₦600
D. ₦650
Question 10
A country's balance of payments is given by the following equation: BOP = X - M, where BOP is the balance of payments, X is exports, and M is imports. If exports increase by 15% and imports decrease by 10%, what is the percentage change in the balance of payments?
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
A firm's total revenue is given by TR = 100Q - 2Q^2, where Q is the quantity sold. If the firm sells 10 units, what is its marginal revenue?
A. $80
B. $90
C. $100
D. $110
Question 12
A monopolist faces a market demand curve given by Q = 100 - 2P. The inverse demand function is
A. P = 50 - 0.5Q
B. P = 50 + 0.5Q
C. P = 50 - 0.1Q
D. P = 50 + 0.1Q
Question 13
A firm's \cost function is given by the equation C(x) = 10x + 20x^2. If the firm produces 10 units, what is the total \cost?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 14
A country's government budget is given by the following equation: G = T + I, where G is government exp\enditure, T is taxation, and I is investment. If taxation increases by 20% and investment decreases by 15%, what is the percentage change in government exp\enditure?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
A consumer's utility function is given by U(x,y) = 2x + 3y. The marginal utility of x is
A. MUx = 2
B. MUx = 3
C. MUx = 4
D. MUx = 5

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