POST UTME DELSU 2019 Economics | Objective

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Question 1 View Details
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's revenue function is R = PQ, find the price at which the firm's revenue is maximized.
A. ₦50
B. ₦75
Correct C. ₦100
D. ₦125

Correct Answer: C

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Question 2 View Details
The following diagram shows the demand and supply curves for a particular good. If the price of the good is ₦100, what is the equilibrium quantity?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 3 View Details
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 2x + 3y = 12, find the optimal quantities of x and y.
Correct A. x = 2, y = 4
B. x = 4, y = 2
C. x = 6, y = 0
D. x = 0, y = 6

Correct Answer: A

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Question 4 View Details
The following diagram shows the demand and supply curves for a particular good. If the price of the good is ₦150, what is the equilibrium quantity?
A. 15
B. 20
Correct C. 25
D. 30

Correct Answer: C

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Question 5 View Details
A firm's \cost function is given by C = 2Q + 3, where C is the total \cost and Q is the quantity produced. If the firm's revenue function is R = 4Q, find the profit-maximizing quantity.
A. 2
Correct B. 4
C. 6
D. 8

Correct Answer: B

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Question 6 View Details
Consider a small open economy with a fixed exchange rate. The government imposes a tariff on imported goods, leading to a decrease in imports. U\sing the Marshall-Lerner condition, determine the effect on the balance of payments.
A. The balance of payments will improve due to the decrease in imports.
Correct B. The balance of payments will worsen due to the decrease in imports.
C. The balance of payments will remain unchanged due to the fixed exchange rate.
D. The balance of payments will improve due to the increase in exports.

Correct Answer: B

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Question 7 View Details
A firm is considering a new investment project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦70,000, Year 3: ₦90,000. Calculate the net present value (NPV) of the project u\sing a discount rate of 10%.
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 8 View Details
A consumer has a utility function given by U(x,y) = 2x + 3y. The prices of x and y are ₦5 and ₦3, respectively. The consumer's income is ₦100. U\sing the budget constraint, determine the optimal consumption bundle.
A. (10,20)
Correct B. (15,15)
C. (20,10)
D. (25,5)

Correct Answer: B

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Question 9 View Details
A government is considering a tax on a particular good. The demand for the good is given by Qd = 100 - 2P, and the supply is given by Qs = 2P. U\sing the concept of elasticity, determine the effect of the tax on the price and quantity of the good.
Correct A. The price will increase, and the quantity will decrease.
B. The price will decrease, and the quantity will increase.
C. The price will remain unchanged, and the quantity will remain unchanged.
D. The price will increase, and the quantity will increase.

Correct Answer: A

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Question 10 View Details
A country is experiencing a trade deficit due to a decrease in exports and an increase in imports. U\sing the concept of the balance of payments, determine the effect of the trade deficit on the exchange rate.
Correct A. The exchange rate will depreciate.
B. The exchange rate will appreciate.
C. The exchange rate will remain unchanged.
D. The exchange rate will fluctuate.

Correct Answer: A

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Question 11 View Details
Determine the price elasticity of demand for a product whose price elasticity of supply is 0.5 and the cross-price elasticity of demand is -0.2.
A. 0.5
B. -0.2
Correct C. 1.0
D. -0.5

Correct Answer: C

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Question 12 View Details
A firm is operating in a perfectly competitive market with a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P - 10. Determine the equilibrium price and quantity.
A. ₦20, Q = 40
Correct B. ₦30, Q = 50
C. ₦40, Q = 60
D. ₦50, Q = 70

Correct Answer: B

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Question 13 View Details
A firm has a total revenue function given by TR = 2Q^2 - 10Q + 20 and a total \cost function given by TC = Q^2 + 5Q + 10. Determine the profit-maximizing quantity and price.
A. Q = 5, P = ₦10
Correct B. Q = 10, P = ₦20
C. Q = 15, P = ₦30
D. Q = 20, P = ₦40

Correct Answer: B

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Question 14 View Details
A central bank has a monetary policy goal of reducing inflation from 5% to 3% within two years. If the current money supply is ₦100 billion and the velocity of money is 2, determine the required money supply growth rate.
Correct A. 10%
B. 15%
C. 20%
D. 25%

Correct Answer: A

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Question 15 View Details
A country's GDP is ₦500 billion, its imports are ₦100 billion, and its government exp\enditure is ₦150 billion. Determine the country's national income.
A. ₦450 billion
B. ₦500 billion
Correct C. ₦550 billion
D. ₦600 billion

Correct Answer: C

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Question 16 View Details
The concept of diminishing marginal utility is a fundamental principle in consumer behavior. Which of the following statements best describes this concept?
Correct A. As the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases.
B. The marginal utility derived from each additional unit of a good consumed remains cons\tant.
C. The marginal utility derived from each additional unit of a good consumed increases.
D. The marginal utility derived from each additional unit of a good consumed is indep\endent of the quantity consumed.

Correct Answer: A

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Question 17 View Details
Agricultural development in Nigeria has been hindered by several factors. Which of the following is NOT a major constraint?
A. Lack of access to credit facilities
Correct B. Inadequate irrigation systems
C. High population growth rate
D. Climate change

Correct Answer: B

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Question 18 View Details
The concept of elasticity of demand is crucial in unders\tanding consumer behavior. Which of the following statements best describes the concept of elasticity of demand?
Correct A. The responsiveness of the quantity demanded of a good to changes in its price
B. The responsiveness of the quantity supplied of a good to changes in its price
C. The responsiveness of the quantity demanded of a good to changes in its income
D. The responsiveness of the quantity supplied of a good to changes in its income

Correct Answer: A

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Question 19 View Details
The concept of returns to scale is a fundamental principle in production theory. Which of the following statements best describes the concept of returns to scale?
Correct A. The change in output resulting from a proportionate change in all inputs
B. The change in output resulting from a change in one input
C. The change in output resulting from a change in the price of one input
D. The change in output resulting from a change in the price of all inputs

Correct Answer: A

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Question 20 View Details
The concept of taxation is a fundamental principle in public finance. Which of the following statements best describes the concept of taxation?
Correct A. The compulsory payment of money by individuals or bu\sinesses to the government
B. The payment of money by individuals or bu\sinesses to the government voluntarily
C. The payment of money by individuals or bu\sinesses to the government in exchange for a service
D. The payment of money by individuals or bu\sinesses to the government in exchange for a good

Correct Answer: A

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Question 21 View Details
The elasticity of demand for a commodity is measured by the percentage change in the quantity demanded in response to a 1% change in the price of the commodity. If the demand for a commodity is elastic, what happens to the total revenue of the producer when the price of the commodity increases by 10%?
A. Total revenue increases by 10%
Correct B. Total revenue decreases by 10%
C. Total revenue remains the same
D. Total revenue increases by 20%

Correct Answer: B

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Question 22 View Details
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 5 units of output, what is the total \cost of production?
A. ₦35
B. ₦40
Correct C. ₦45
D. ₦50

Correct Answer: C

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Question 23 View Details
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 of the commodity is ₦20, what is the quantity demanded?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 24 View Details
A firm's revenue function is given by R(q) = 3q^2 - 2q + 10. If the firm produces 4 units of output, what is the marginal revenue?
A. ₦10
B. ₦15
Correct C. ₦20
D. ₦25

Correct Answer: C

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Question 25 View Details
The supply of a commodity is given by the equation Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price of the commodity is ₦15, what is the quantity supplied?
A. 20 units
B. 25 units
Correct C. 30 units
D. 35 units

Correct Answer: C

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