POST UTME ESUT 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of diminishing marginal utility is a fundamental principle in consumer behavior. Which of the following best describes this concept?
A. The more a consumer buys of a good, the lower the price they are willing to pay for it.
B. The more a consumer buys of a good, the higher the satisfaction they derive from it.
C. The more a consumer buys of a good, the lower the marginal utility they derive from it.
D. The more a consumer buys of a good, the higher the price they are willing to pay for it.
Question 2
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, find the optimal values of x and y.
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 3
A firm's \cost function is given by C(x) = 100 + 2x^2. If the firm's revenue function is R(x) = 100x - 2x^2, find the value of x that minimizes \cost.
A. 10
B. 20
C. 30
D. 40
Question 4
A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the two goods are ₦50 and ₦75 respectively, and the consumer has a budget of ₦150, what is the optimal quantity of good x?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 5
The government of Nigeria imposes a tax on imported goods to raise revenue. What is the likely effect of this tax on the quantity of the good imported?
A. The quantity of the good imported increases.
B. The quantity of the good imported decreases.
C. The quantity of the good imported remains the same.
D. The quantity of the good imported increases in the short run but decreases in the long run.
Question 6
A firm is a pure monopolist with a demand curve given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's marginal revenue is ₦50 per unit, what is the price at which the firm will produce 50 units?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 7
A consumer has a utility function given by ( U(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 200, y = 100
B. x = 150, y = 150
C. x = 100, y = 200
D. x = 200, y = 200
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the price that maximizes the monopolist's profit?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
A firm's supply of a product is given by the equation: \( Q_s = 50 + 2P \), where \( Q_s \) is the quantity supplied, and (P) is the price. If the price is $10, what is the quantity supplied?
A. 50
B. 60
C. 70
D. 80
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. The firm's \cost function is given by C = 10L + 20K. What is the firm's profit-maximizing level of labor?
A. 10
B. 20
C. 30
D. 40
Question 11
A country's agricultural sector is characterized by a production function of the form Q = f(L, K), where Q is output, L is labor, and K is capital. If the country's current labor and capital inputs are 500 units each, and the production function is homogeneous of degree 2, what is the country's current output?
A. 250000
B. 500000
C. 750000
D. 1000000
Question 12
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 100 units each, what is the firm's current output?
A. 1000
B. 10000
C. 100000
D. 1000000
Question 13
A monopolistically competitive firm is faced with a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain the same
D. Total revenue will increase at first, then decrease
Question 14
A firm has a production function Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, what is the total \cost of production?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 15
A country's GDP is ₦100 billion and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

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