POST UTME ELIZADE UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor and K is capital. If the firm's current labor and capital inputs are 4 and 9 respectively, what is the marginal product of capital?
A. \( \frac{1}{2}L^{1/2}K^{-1/2} \)
B. \( L^{1/2}K^{1/2} \)
C. \( 2L^{1/2}K^{-1/2} \)
D. \( 4L^{-1/2}K^{1/2} \)
Question 2
A firm is considering investing in a new project. The project has a high initial \cost but will generate a large profit in the long run. What is the opportunity \cost of investing in this project?
A. The initial \cost of the project
B. The profit generated by the project
C. The opportunity \cost is not relevant in this case
D. The opportunity \cost is the profit generated by the project minus the initial \cost
Question 3
A perfectly competitive market has a supply function given by \( Q_s = 2P - 100 \). If the market equilibrium price is ₦50, find the equilibrium quantity.
A. \( Q = 50 \)
B. \( Q = 100 \)
C. \( Q = 200 \)
D. \( Q = 300 \)
Question 4
The Nigerian government has implemented a policy to increase the production of agricultural products. If the production of rice increases by 20% and the price of rice decreases by 10%, what is the effect on the consumer's surplus?
A. Increase by 10%
B. Decrease by 10%
C. Remain the same
D. Increase by 20%
Question 5
A government imposes a tax of ₦10 on a good that is currently priced at ₦50. If the demand for the good is given by the equation \( Q = 100 - 2P \), find the new equilibrium price and quantity.
A. \( P = 40, Q = 60 \)
B. \( P = 30, Q = 70 \)
C. \( P = 20, Q = 80 \)
D. \( P = 10, Q = 90 \)
Question 6
A country is faced with a budget constraint given by the equation C + I + G = Y, where C is consumption, I is investment, G is government sp\ending, and Y is national income. If the country wants to increase its national income by 10%, how much should it increase its government sp\ending?
A. 5%
B. 10%
C. 15%
D. 20%
Question 7
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the optimal bundle of x and y.
A. \( x = 80, y = 40 \)
B. \( x = 60, y = 20 \)
C. \( x = 40, y = 10 \)
D. \( x = 20, y = 5 \)
Question 8
A farmer has 100 hectares of land and wants to plant two crops, maize and soybeans. The revenue from maize is ₦100,000 per hectare, while the revenue from soybeans is ₦120,000 per hectare. If the \cost of planting maize is ₦80,000 per hectare and the \cost of planting soybeans is ₦60,000 per hectare, what is the optimal crop mix?
A. Maize: 50 hectares, Soybeans: 50 hectares
B. Maize: 60 hectares, Soybeans: 40 hectares
C. Maize: 70 hectares, Soybeans: 30 hectares
D. Maize: 80 hectares, Soybeans: 20 hectares
Question 9
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm's revenue function is R(q) = 20q, what is the firm's profit-maximizing output?
A. 5 units
B. 10 units
C. 15 units
D. 20 units
Question 10
A country's balance of payments is in surplus. What does this imply about the country's trade balance?
A. The trade balance is in surplus
B. The trade balance is in deficit
C. The trade balance is balanced
D. The trade balance is not affected
Question 11
A country's balance of payments account is given by the following equation: BOP = \( X-M \) + \( F-I \). If the country's exports (X) are ₦500 billion, imports (M) are ₦300 billion, foreign investment (F) is ₦200 billion, and domestic investment (I) is ₦150 billion, what is the country's balance of payments?
A. +₦100 billion
B. +₦50 billion
C. +₦0 billion
D. -₦50 billion
Question 12
A country's economic growth rate is given by the equation: GDP growth rate = \( C + I + G + X - M \) / GDP. If the country's GDP is ₦10 trillion, and the values of C, I, G, X, and M are ₦2 trillion, ₦1 trillion, ₦500 billion, ₦1.5 trillion, and ₦1.2 trillion respectively, what is the country's economic growth rate?
A. 2%
B. 3%
C. 4%
D. 5%
Question 13
A government is considering a budget that allocates ₦1,000 for education and ₦500 for healthcare. If the government also allocates ₦200 for defense and ₦300 for infrastructure, what is the total budget?
A. ₦2,000
B. ₦2,300
C. ₦2,500
D. ₦2,700
Question 14
The demand for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by Qs = 2P - 100. What is the equilibrium price?
A. 50
B. 75
C. 100
D. 125
Question 15
A country's balance of payments is given by BOP = 100 + 0.5X - 0.01X^2, where X is the level of exports. If the country's imports are given by M = 120 - 0.2X + 0.005X^2, what is the country's trade balance?
A. 10
B. 20
C. 30
D. 40

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