POST UTME EKSU 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor \( P_L \) is ₦100 per unit and the price of capital \( P_K \) is ₦200 per unit, what is the optimal combination of labor and capital that minimizes the \cost of producing 4 units of output?
A. L = 4, K = 2
B. L = 2, K = 4
C. L = 1, K = 8
D. L = 8, K = 1
Question 2
A government imposes a tax of ₦5 per unit on a good. The supply function is given by Q = 2P + 10. Find the new supply function after the tax is imposed.
A. Q = 2P + 20
B. Q = 2P + 25
C. Q = 2P + 30
D. Q = 2P + 35
Question 3
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes the firm's revenue.
A. 1
B. 2
C. 3
D. 4
Question 4
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function given by C(Q) = 20Q + 100. If the firm's marginal revenue function is MR(Q) = 200 - 2Q, find the profit-maximizing quantity of output.
A. 20
B. 30
C. 40
D. 50
Question 5
The supply curve of a firm is upward-sloping because the firm is a price-taker in the market. Which of the following is a correct statement regarding the relationship between the supply curve and the marginal \cost curve?
A. The supply curve is a horizontal line that intersects the marginal \cost curve at the equilibrium price.
B. The supply curve is a vertical line that intersects the marginal \cost curve at the equilibrium quantity.
C. The supply curve is upward-sloping because the marginal \cost curve is downward-sloping.
D. The supply curve is downward-sloping because the marginal \cost curve is upward-sloping.
Question 6
The production function for a firm is given by \( Q = 2L^2 + 3K \), where Q is the output, L is the labor and K is the capital. If the firm uses 5 units of labor and 10 units of capital, find the output.
A. 50
B. 60
C. 70
D. 80
Question 7
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) curve is given by MR = 200 - 2Q, what is the firm's equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 8
A monopolist faces a demand curve given by P = 100 - 2Q. The marginal revenue (MR) function is given by MR = 100 - 4Q. What is the price elasticity of demand at a quantity of 20 units?
A. 0.5
B. 1
C. 2
D. 4
Question 9
The production function is given by Q = 2L^0.5K^0.5. If the price of labor \( P_L \) is ₦100 per unit and the price of capital \( P_K \) is ₦200 per unit, what is the total \cost of producing 4 units of output?
A. ₦400
B. ₦800
C. ₦1200
D. ₦1600
Question 10
The concept of scarcity in economics implies that the wants and needs of individuals are unlimited, while the resources available to satisfy these wants and needs are limited. Which of the following is a correct statement regarding the law of diminishing marginal utility?
A. As the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases.
B. The law of diminishing marginal utility is applicable only to normal goods.
C. The law of diminishing marginal utility is a consequence of the law of demand.
D. The law of diminishing marginal utility is a concept that applies only to individual consumers.
Question 11
A firm's \cost function is given by C(x) = 2x^2 + 10x. If the firm produces 100 units of output, what is the firm's average \cost?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 12
A firm has a total \cost function given by TC = 100 + 2x^2, where x is the number of units produced. Find the marginal \cost function.
A. 4x
B. 2x
C. 100 + 4x
D. 100 + 2x
Question 13
The agricultural sector in Nigeria is a significant contributor to the country's GDP. Which of the following is a correct statement regarding the impact of agricultural subsidies on the agricultural sector?
A. Agricultural subsidies lead to an increase in the production of crops and a decrease in the price of agricultural products.
B. Agricultural subsidies lead to a decrease in the production of crops and an increase in the price of agricultural products.
C. Agricultural subsidies have no effect on the production of crops and the price of agricultural products.
D. Agricultural subsidies lead to an increase in the production of crops and an increase in the price of agricultural products.
Question 14
A country's balance of payments (BOP) accounts can be classified into which of the following categories?
A. Current account, capital account, and financial account
B. Current account, capital account, and trade account
C. Current account, capital account, and investment account
D. Current account, capital account, and exchange account
Question 15
A government imposes a tax of ₦5 on a firm's output. If the firm's supply curve is given by Q = 100 - 2P, what is the new supply curve after the tax is imposed?
A. Q = 100 - 2P - 5
B. Q = 100 - 2P + 5
C. Q = 100 - 2P - 10
D. Q = 100 - 2P + 10

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: