POST UTME COVENANT UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's marginal revenue product (MRP) is given by the equation MRP = 2Q + 5. If the firm's marginal \cost (MC) is ₦10, what is the firm's optimal output?
A. Q = 5
B. Q = 10
C. Q = 15
D. Q = 20
Question 2
A government imposes a tax of ₦5 on every unit of a commodity. If the supply function is given by Qs = 2P - 10 and the demand function is given by Qd = 100 - 2P, what is the new equilibrium price?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 3
The GDP of a country is ₦10 trillion. If the country's population is 200 million, calculate the per capita GDP.
A. ₦50,000
B. ₦50,500
C. ₦50,000
D. ₦50,500
Question 4
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain the same
D. Total revenue will increase at first, then decrease
Question 5
A firm is producing a good at a level where its average revenue (AR) is equal to its average \cost (AC). If the firm increases its production by 1 unit, what will happen to its average revenue (AR)?
A. AR will increase by 1 unit
B. AR will decrease by 1 unit
C. AR will remain the same
D. AR will increase by more than 1 unit
Question 6
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 7
A consumer has the following utility function: \( U = 2x + 3y \). If the prices of x and y are $2 and $3 respectively, and the consumer's income is $10, what is the optimal bundle of x and y?
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 4, y = 0
D. x = 0, y = 4
Question 8
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $15 billion. What is the country's GNP?
A. $95 billion
B. $105 billion
C. $115 billion
D. $125 billion
Question 9
The government of Nigeria has introduced a new policy to encourage agricultural production. The policy involves providing subsidies to farmers who produce crops that are in high demand. However, the policy also involves increa\sing the price of fertilizers to reflect their true market value. Which of the following is a likely consequence of this policy?
A. An increase in the production of crops that are in high demand
B. A decrease in the production of crops that are in high demand
C. An increase in the price of fertilizers
D. A decrease in the price of fertilizers
Question 10
A government imposes a tax of ₦5 on every unit of a commodity. If the supply function is given by Qs = 2P - 10 and the demand function is given by Qd = 100 - 2P, what is the new equilibrium price?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 11
A farmer produces wheat u\sing a production function given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is the quantity of wheat produced, K is the amount of capital used, and L is the amount of labor used. If the price of wheat is ₦20 per unit and the price of capital is ₦10 per unit, what is the optimal level of capital and labor to produce?
A. K = 100, L = 100
B. K = 200, L = 200
C. K = 50, L = 50
D. K = 150, L = 150
Question 12
A firm's \cost function is given by the equation C = 2Q^2 + 10Q, where C is the \cost and Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. ₦120
B. ₦150
C. ₦180
D. ₦200
Question 13
Suppose the demand function for a commodity is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10. If the market is in equilibrium, what is the price at which the market is in equilibrium?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 14
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price is increased by 20%, what is the new quantity demanded?
A. 80
B. 90
C. 100
D. 110
Question 15
A country's balance of payments is given by the following equation: BOP = X - M + \( F - I \). If the country's exports (X) are ₦1000, imports (M) are ₦800, foreign investment (F) is ₦500, and domestic investment (I) is ₦200, what is the balance of payments?
A. ₦300
B. ₦400
C. ₦500
D. ₦600

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