POST UTME ELIZADE UNIVERSITY 2019 Economics | Objective

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Question 1
A monopolist faces a demand curve given by P = 100 - 2Q, where P is price and Q is quantity. The firm's marginal \cost is given by MC = 10 + 2Q. What is the profit-maximizing quantity and price?
A. Q = 20, P = 80
B. Q = 30, P = 70
C. Q = 40, P = 60
D. Q = 50, P = 50
Question 2
A firm is producing a good with a marginal revenue of ₦100 and a marginal \cost of ₦120. What is the profit-maximizing quantity?
A. 100 units
B. 120 units
C. 80 units
D. 90 units
Question 3
A firm is producing a good u\sing a production function Q = 2L^0.5K^0.5. If the price of labor \( P_L \) is ₦100 and the price of capital \( P_K \) is ₦200, what is the value of the marginal product of capital (MPC) when L = 4 and K = 9?
A. ₦50
B. ₦100
C. ₦200
D. ₦300
Question 4
The demand for a product is given by Q = 100 - 2P. If the price elasticity of demand is -2, what is the value of the price elasticity of demand when the price is ₦50?
A. ₦25
B. ₦50
C. ₦75
D. ₦100
Question 5
The demand for a product is given by Q = 100 - 2P. If the price elasticity of demand is -2, what is the value of the price elasticity of demand when the price is ₦50?
A. ₦25
B. ₦50
C. ₦75
D. ₦100
Question 6
A firm's supply curve is given by the equation Q = 2P + 100, where Q is the quantity supplied and P is the price. If the price is ₦20,000, how many units will the firm supply?
A. 200
B. 300
C. 400
D. 500
Question 7
A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. If the price elasticity of demand is 0.8, what is the price elasticity of supply?
A. 0.8
B. 1.25
C. 0.5
D. 1.6
Question 8
The supply of a product is given by Q = 2P + 100. If the price elasticity of supply is 2, what is the value of the price elasticity of supply when the price is ₦50?
A. ₦25
B. ₦50
C. ₦75
D. ₦100
Question 9
Consider a country with a fixed exchange rate of ₦5 per US dollar. If the country's GDP is ₦10 trillion and its imports are ₦2 trillion, what is the balance of payments surplus or deficit?
A. ₦8 trillion surplus
B. ₦8 trillion deficit
C. ₦4 trillion surplus
D. ₦4 trillion deficit
Question 10
A central bank increases the reserve requirement for commercial banks. What will happen to the money supply?
A. Increase
B. Decrease
C. Remain the same
D. Increase at a decrea\sing rate
Question 11
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 increases labor from 4 to 9 units, and capital from 9 to 16 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A firm is producing a good u\sing a production function Q = 2L^0.5K^0.5. If the price of labor \( P_L \) is ₦100 and the price of capital \( P_K \) is ₦200, what is the value of the total product of labor (TPL) when L = 4 and K = 9?
A. ₦400
B. ₦600
C. ₦800
D. ₦1000
Question 13
Consider a perfectly competitive market with 5 firms producing a homogeneous product. If each firm increases its production by 10% in response to a 10% decrease in market price, what will be the new equilibrium price and quantity?
A. New equilibrium price: ₦100, New equilibrium quantity: 100 units
B. New equilibrium price: ₦90, New equilibrium quantity: 110 units
C. New equilibrium price: ₦80, New equilibrium quantity: 120 units
D. New equilibrium price: ₦70, New equilibrium quantity: 130 units
Question 14
The production function is given by Q = 2L^0.5K^0.5. If the price of labor \( P_L \) is ₦100 and the price of capital \( P_K \) is ₦200, what is the value of the marginal product of labor (MPL) when L = 4 and K = 9?
A. ₦50
B. ₦100
C. ₦200
D. ₦300
Question 15
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where BOP is the balance of payments, X is exports, M is imports, F is foreign investment and I is domestic investment. If the country's exports increase by 10%, imports decrease by 5%, foreign investment increases by 15% and domestic investment decreases by 10%, what is the percentage change in the balance of payments?
A. 2%
B. 5%
C. 8%
D. 12%

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