POST UTME EKSU 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are 4 and 9 respectively, what is the marginal product of capital?
A. 1
B. 2
C. 3
D. 4
Question 2
A firm's production function is given by Q = 2L + 3K. If the firm's \cost function is given by C = 10L + 20K, what is the firm's profit-maximizing level of output?
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 3
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's current exports and imports are 100 and 80 respectively, and foreign investment and domestic investment are 50 and 30 respectively, what is the balance of payments?
A. 10
B. 20
C. 30
D. 40
Question 4
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm's output will increase and then decrease.
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 12%
D. 15%
Question 6
A monopolistically competitive firm faces a downward-sloping demand curve. What is the primary effect of an increase in the firm's fixed \costs?
A. Increase in price
B. Decrease in quantity supplied
C. Increase in quantity supplied
D. Decrease in price
Question 7
Consider a country with a fixed money supply and a stable exchange rate. If the central bank increases the reserve requirement for commercial banks, what will be the effect on the money multiplier?
A. The money multiplier will decrease
B. The money multiplier will increase
C. The money multiplier will remain unchanged
D. The money multiplier will be unaffected
Question 8
A firm is considering a new investment project that requires an initial outlay of ₦500,000. The project is expected to generate a cash inflow of ₦200,000 in the first year, ₦250,000 in the second year, and ₦300,000 in the third year. U\sing the internal rate of return (IRR) method, what will be the minimum discount rate that would make the project acceptable?
A. 10%
B. 15%
C. 20%
D. 25%
Question 9
A consumer has a budget constraint of ₦1000 and a preference for two goods, A and B. The prices of goods A and B are ₦200 and ₦300, respectively. U\sing the budget constraint and indifference curve analysis, what will be the consumer's optimal consumption bundle?
A. (4 units of A, 2 units of B)
B. (2 units of A, 4 units of B)
C. (1 unit of A, 3 units of B)
D. (3 units of A, 1 unit of B)
Question 10
A firm's average total \cost (ATC) curve is U-shaped, with ATC initially decrea\sing and then increa\sing. What is the primary reason for this U-shape?
A. Economies of scale
B. Diseconomies of scale
C. Increa\sing returns to scale
D. Decrea\sing returns to scale
Question 11
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 firm's current output price is p = ₦500, calculate the firm's current profit-maximizing level of labor (L) and capital (K).
A. L = 100, K = 100
B. L = 50, K = 50
C. L = 200, K = 200
D. L = 0, K = 0
Question 12
A consumer is faced with a choice between two goods, X and Y. The price of good X is ₦2,000 and the price of good Y is ₦1,500. U\sing the concept of indifference curve, explain why the consumer may choose to purchase more of good X.
A. The consumer has a high income elasticity of demand for good X, leading to a high demand for the good.
B. The consumer has a low income elasticity of demand for good Y, leading to a low demand for the good.
C. The consumer has a budget constraint that limits their ability to purchase good Y.
D. The consumer has a high price elasticity of demand for good X, leading to a high demand for the good.
Question 13
A country's GDP is ₦1,000,000,000. If the country's population is 20,000,000, what is the per capita income?
A. ₦50
B. ₦100
C. ₦200
D. ₦500
Question 14
The government of a country imposes a tax on imported goods to raise revenue. However, the tax also leads to an increase in the price of the goods. U\sing the concept of opportunity \cost, explain why the government's decision to impose the tax may not be the most efficient way to raise revenue.
A. The tax increases the price of the goods, leading to a decrease in demand and a loss of revenue.
B. The tax shifts the supply curve to the left, leading to a decrease in production and a loss of revenue.
C. The tax increases the opportunity \cost of producing the goods, leading to a decrease in production and a loss of revenue.
D. The tax has no effect on the opportunity \cost of producing the goods, and therefore does not lead to a decrease in production or a loss of revenue.
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the firm's current output price is p = ₦500, calculate the firm's current profit-maximizing level of labor (L) and capital (K).
A. L = 100, K = 100
B. L = 50, K = 50
C. L = 200, K = 200
D. L = 0, K = 0

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