POST UTME ELIZADE UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country is experiencing a recession, and the government is considering implementing a fiscal policy to stimulate the economy. Which of the following fiscal policies would be most effective in stimulating the economy?
A. Increa\sing government sp\ending
B. Reducing taxes
C. Increa\sing interest rates
D. Reducing government sp\ending
Question 2
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget is $100 and the prices of the two goods are $10 and $20 respectively, what is the consumer's optimal bundle?
A. (5, 5)
B. (10, 10)
C. (15, 15)
D. (20, 20)
Question 3
A perfectly competitive firm's supply curve is upward-sloping because it is a
A. price-taker
B. price-maker
C. price-setter
D. price-follower
Question 4
The following diagram shows the balance of payments for a country. What is the value of the trade balance?
A. ( 100 )
B. ( 200 )
C. ( 300 )
D. ( 400 )
Question 5
A firm operates in a perfectly competitive market with a demand curve given by Q = 100 - 2P and a \cost function of C(Q) = 2Q^2 + 10Q. Find the firm's profit-maximizing quantity and price.
A. Q = 20, P = ₦40
B. Q = 30, P = ₦60
C. Q = 40, P = ₦80
D. Q = 50, P = ₦100
Question 6
A country's GDP is $100 billion, its imports are $20 billion and its exports are $30 billion. What is its balance of payments?
A. $10 billion surplus
B. $10 billion deficit
C. $20 billion surplus
D. $20 billion deficit
Question 7
A country's GDP is $100 billion and its GNP is $120 billion. What is the net factor income from abroad?
A. 10
B. 20
C. 30
D. 40
Question 8
A firm's production function is given by Q = 2L + 3K. If the firm has 10 units of labor and 5 units of capital, what is the total output?
A. 25
B. 30
C. 35
D. 40
Question 9
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦3, respectively, what is the consumer's optimal bundle?
A. (10, 10)
B. (15, 5)
C. (20, 0)
D. (0, 20)
Question 10
The following diagram shows the demand and supply curves for a good. What is the equilibrium price?
A. ( 10 )
B. ( 20 )
C. ( 30 )
D. ( 40 )
Question 11
Consider a firm that produces two goods, A and B, u\sing two inputs, labor (L) and capital (K). The production functions are given by Q_A = 2L^0.5K^0.5 and Q_B = 3L^0.5K^0.5. If the firm's budget constraint is given by 2L + 3K = 12, calculate the firm's optimal input mix and the marginal rate of technical substitution (MRTS) between labor and capital.
A. (4, 2)
B. (3, 3)
C. (2, 4)
D. (1, 5)
Question 12
A firm's \cost function is given by ( C(x) = 2x^2 + 5x + 10 ). If the firm produces 20 units, what is the total \cost?
A. ( 2(20)^2 + 5(20) + 10 = 840 )
B. ( 2(20)^2 + 5(20) + 10 = 810 )
C. ( 2(20)^2 + 5(20) + 10 = 850 )
D. ( 2(20)^2 + 5(20) + 10 = 880 )
Question 13
A monopolist faces a demand curve with a cons\tant elasticity of -3. If the firm's marginal revenue curve is given by MR = 20 - 3Q, what is the firm's optimal output level?
A. Q = 5
B. Q = 10
C. Q = 15
D. Q = 20
Question 14
Consider a firm operating in a perfectly competitive market. If the firm's average \cost curve (AC) intersects the demand curve (D) at point E, and the marginal \cost curve (MC) intersects the demand curve (D) at point F, what is the likely outcome for the firm's profit?
A. The firm will make a normal profit.
B. The firm will make an economic profit.
C. The firm will make a loss.
D. The firm will break even.
Question 15
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 wants to increase output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%

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