POST UTME ESUT 2019 Economics | Objective

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Question 1
A firm's production function is given by \( Q = 2L^2 + 3K \), where L is labor and K is capital. If the firm's \cost function is given by \( C = 10L + 20K \), and the prices of labor and capital are $10 and $20 respectively, what is the firm's optimal input bundle?
A. L = 2, K = 3
B. L = 3, K = 2
C. L = 4, K = 1
D. L = 1, K = 4
Question 2
Consider a country with a GDP of ₦10 trillion and a GNP of ₦12 trillion. If the country's population is 200 million, calculate the per capita GDP and GNP.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 3
A country's agricultural sector is characterized by a high degree of backward and forward linkages. What is the implication of this for the country's overall economic development?
A. The country's economic development will be slowed down
B. The country's economic development will be accelerated
C. The country's economic development will be unaffected
D. The country's economic development will be negatively affected
Question 4
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 6 units, what is the percentage change in output?
A. -10%
B. 0%
C. 10%
D. 20%
Question 5
A country's balance of payments account is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, calculate the balance of payments.
A. ₦20 billion deficit
B. ₦20 billion surplus
C. ₦10 billion deficit
D. ₦10 billion surplus
Question 6
A firm is producing a good with a total revenue (TR) of ₦1,500 and a total \cost (TC) of ₦1,200. If the firm's average revenue (AR) is ₦150, what is its average \cost (AC)?
A. ₦100
B. ₦120
C. ₦150
D. ₦180
Question 7
A firm's demand function is given by Q = 100 - 2P. If the price is ₦20, calculate the quantity demanded.
A. 50
B. 60
C. 70
D. 80
Question 8
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. If a country's GDP is ₦100 billion and its GNP is ₦120 billion, what is the value of net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 9
A firm's marginal \cost is given by the equation MC = 2x + 5, where x is the number of units produced. If the firm produces 15 units, what is its marginal \cost?
A. ₦45
B. ₦50
C. ₦55
D. ₦60
Question 10
A government plans to increase the price of a commodity by 15% to reduce its consumption. However, the demand for the commodity is inelastic. What will be the effect of this price increase on the government's revenue?
A. The government's revenue will increase by 15%
B. The government's revenue will decrease by 15%
C. The government's revenue will remain the same
D. The government's revenue will increase by 20%
Question 11
A government imposes a tax on a commodity, which increases its price by 20%. What will be the effect on the quantity demanded of the commodity?
A. The quantity demanded will increase by 20%
B. The quantity demanded will decrease by 20%
C. The quantity demanded will remain the same
D. The quantity demanded will increase by 10%
Question 12
A firm's production function is given by \( Q = 2L^2 + 3K \), where L is labor and K is capital. If the firm's \cost function is given by \( C = 10L + 20K \), and the prices of labor and capital are $10 and $20 respectively, what is the firm's optimal input bundle?
A. L = 2, K = 3
B. L = 3, K = 2
C. L = 4, K = 1
D. L = 1, K = 4
Question 13
A firm has a total revenue function of TR = 100x - 2x^2 and a total \cost function of TC = 50 + 20x + 3x^2. What is the profit-maximizing level of output?
A. 5 units
B. 10 units
C. 15 units
D. 20 units
Question 14
Suppose a firm is operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its production level, what will happen to its average revenue (AR) and marginal revenue (MR)?
A. AR and MR will both increase
B. AR will decrease, but MR will remain cons\tant
C. AR will increase, but MR will decrease
D. AR and MR will both decrease
Question 15
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 inputs are increased by 10% and 20% respectively, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%

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