POST UTME EKSU 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total revenue is given by the equation TR = 100P^2, where TR is the total revenue and P is the price. If the price elasticity of demand is 2, what is the percentage change in price that will lead to a 10% increase in total revenue?
A. 5%
B. 10%
C. 15%
D. 20%
Question 2
A firm's demand curve is given by Qd = 100 - 2P, and the supply curve is given by Qs = 2P - 100. If the equilibrium price is P = 50, what is the equilibrium quantity?
A. 100
B. 150
C. 200
D. 250
Question 3
The government of Nigeria has introduced a new policy aimed at increa\sing the production of rice in the country. The policy requires farmers to use a new type of fertilizer that \costs ₦50,000 per bag. If a farmer needs 5 bags of fertilizer to produce 1 ton of rice, how much will it \cost to produce 10 tons of rice?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 4
A monopolist faces a demand curve given by Qd = 100 - 2P. If the marginal revenue is MR = 200 - 2P, what is the price at which the monopolist maximizes profit?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 5
The government of Nigeria has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has led to an increase in the price of agricultural inputs, which has resulted in a decrease in the quantity of agricultural output. U\sing the concept of opportunity \cost, explain the opportunity \cost of the government's policy.
A. The opportunity \cost is the decrease in the quantity of agricultural output.
B. The opportunity \cost is the increase in the price of agricultural inputs.
C. The opportunity \cost is the decrease in the quantity of agricultural output and the increase in the price of agricultural inputs.
D. The opportunity \cost is the increase in the quantity of agricultural output.
Question 6
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's current values are C = 100, I = 200, G = 300, X = 400, and M = 200, what is the country's GDP?
A. 1000
B. 1200
C. 1400
D. 1600
Question 7
A central bank increases the reserve requirement from 10% to 15%. What is the effect on the money supply?
A. Increases by 20%
B. Increases by 15%
C. Decreases by 10%
D. Decreases by 20%
Question 8
The concept of opportunity \cost is closely related to the law of diminishing marginal utility. Explain how the law of diminishing marginal utility leads to opportunity \cost.
A. The law of diminishing marginal utility leads to opportunity \cost because as the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases, making it necessary to sacrifice one good to obtain another.
B. The law of diminishing marginal utility leads to opportunity \cost because as the quantity of a good consumed increases, the marginal utility derived from each additional unit increases, making it necessary to sacrifice one good to obtain another.
C. The law of diminishing marginal utility has no relation to opportunity \cost.
D. The law of diminishing marginal utility leads to opportunity \cost because as the quantity of a good consumed increases, the marginal utility derived from each additional unit remains cons\tant, making it necessary to sacrifice one good to obtain another.
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input is increased from 100 to 200, and the capital input remains cons\tant at 100, what is the new quantity produced?
A. 50
B. 100
C. 200
D. 250
Question 10
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 11
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy requires farmers to pay a 10% tax on their annual income. If a farmer earns ₦1,000,000 per year, how much tax will they pay?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 12
A firm produces two goods, A and B. The production of good A requires 2 units of labor and 3 units of capital, while the production of good B requires 3 units of labor and 2 units of capital. If the firm has 12 units of labor and 15 units of capital, how many units of good A and good B can it produce?
A. 10 units of A and 8 units of B
B. 12 units of A and 6 units of B
C. 15 units of A and 4 units of B
D. 18 units of A and 2 units of B
Question 13
The demand for a product is elastic if a small change in price leads to a large change in the quantity demanded. Which of the following is a characteristic of an elastic demand?
A. A small change in price leads to a small change in quantity demanded
B. A small change in price leads to a large change in quantity demanded
C. A large change in price leads to a small change in quantity demanded
D. A large change in price leads to a large change in quantity demanded
Question 14
A firm is producing a good with the following \cost and revenue functions: C(q) = 10q + 100 and R(q) = 20q. U\sing the concept of profit maximization, find the quantity of the good that the firm should produce.
A. q = 5
B. q = 10
C. q = 15
D. q = 20
Question 15
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (10, 5)
B. (15, 3)
C. (20, 2)
D. (25, 1)

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