POST UTME EKSU 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C = 2L + 3K. If the firm's current input prices are w = ₦100 and r = ₦200, and the current output price is p = ₦500, calculate the firm's total \cost.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 2
A firm is producing a good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, what is the total \cost of production?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 3
A firm is considering two different production techno\logies: a traditional techno\logy with a production function Q = 2L^0.5K^0.5, and a new techno\logy with a production function Q = 3L^0.7K^0.3. If the firm currently employs 4 units of labor and 2 units of capital, and the input prices are w = ₦100 and r = ₦200, which techno\logy will the firm choose?
A. Traditional techno\logy
B. New techno\logy
C. Both techno\logies are equally profitable
D. Neither techno\logy is profitable
Question 4
In a perfectly competitive market, the law of diminishing marginal returns is not applicable. What is the primary reason for this?
A. The law of diminishing marginal returns is a characteristic of the production function.
B. The law of diminishing marginal returns is not relevant in the short run.
C. The law of diminishing marginal returns is not applicable in a perfectly competitive market because firms can easily enter or exit the market.
D. The law of diminishing marginal returns is not applicable in a perfectly competitive market because firms produce homogeneous products.
Question 5
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape on the consumer's marginal rate of substitution (MRS)?
A. The MRS is cons\tant
B. The MRS is decrea\sing
C. The MRS is increa\sing
D. The MRS is zero
Question 6
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the current output price is p = ₦500, calculate the firm's maximum profit.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 7
A consumer's utility function is given by U = 2x^0.5y^0.5. If the price of good x is ₦50 and the price of good y is ₦100, and if the consumer's income is ₦1000, what is the optimal level of good x (x) and good y (y) that the consumer should purchase?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 8
A firm's average total \cost (ATC) curve is downward sloping in the short run because of?
A. Economies of scale
B. Diminishing marginal returns
C. Fixed \costs
D. Variable \costs
Question 9
The opportunity \cost of producing one more unit of a good is represented by the?
A. Marginal Product Curve
B. Average Product Curve
C. Marginal Revenue Curve
D. Average Total Cost Curve
Question 10
The government of Nigeria has introduced a new policy aimed at promoting agricultural development in the country. The policy includes a 10% subsidy on all fertilizers used by farmers. If the price of a fertilizer is ₦500 per unit, what is the price of the fertilizer to the farmer?
A. ₦450
B. ₦500
C. ₦550
D. ₦600
Question 11
A central bank is considering a monetary policy of increa\sing the money supply by 10%. If the initial money supply is $100 billion, what is the new money supply?
A. $110 billion
B. $120 billion
C. $130 billion
D. $140 billion
Question 12
A government budget is said to be balanced when the total revenue equals the total exp\enditure. What is the primary implication of this on the government's fiscal policy?
A. The government's fiscal policy is contractionary.
B. The government's fiscal policy is expansionary.
C. The government's fiscal policy is neutral.
D. The government's fiscal policy is not affected.
Question 13
A consumer is faced with the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $15, what is the optimal bundle of x and y?
A. \( x=3, y=2 \)
B. \( x=2, y=3 \)
C. \( x=4, y=1 \)
D. \( x=1, y=4 \)
Question 14
A firm is operating in a perfectly competitive market with a demand curve given by Q = 100 - P. The firm's marginal \cost (MC) is cons\tant at ₦10. What is the profit-maximizing price and quantity for the firm?
A. P = ₦45, Q = 55
B. P = ₦50, Q = 50
C. P = ₦55, Q = 45
D. P = ₦60, Q = 40
Question 15
A firm is operating in a monopoly market with a demand curve given by Qd = 100 - 2P. If the firm's marginal \cost (MC) is $10, what is the optimal price to charge?
A. $20
B. $30
C. $40
D. $50

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