POST UTME GREENFIELD 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^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm has 4 units of labor and 9 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 3
Question 2
A firm's demand function for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply function is given by Qs = 2P - 100, what is the equilibrium price and quantity?
A. P = $50, Q = 50
B. P = $75, Q = 75
C. P = $100, Q = 100
D. P = $150, Q = 150
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. What is the marginal product of labor?
A. L^\( -0.5 \)K^0.5
B. 2L^\( -0.5 \)K^0.5
C. L^0.5K^\( -0.5 \)
D. 2L^0.5K^\( -0.5 \)
Question 4
A country's balance of payments account shows a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. What is the value of the capital account surplus?
A. ₦50 billion
B. ₦75 billion
C. ₦100 billion
D. ₦125 billion
Question 5
A firm is considering two different production techno\logies: one that is labor-intensive and another that is capital-intensive. Which techno\logy is likely to be more profitable in the long run?
A. The labor-intensive techno\logy
B. The capital-intensive techno\logy
C. Both techno\logies are equally profitable
D. Neither techno\logy is profitable
Question 6
A firm operating in a perfectly competitive market is faced with a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price falls from ₦100 to ₦90, what is the price elasticity of demand?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 7
A firm's production function is given by \( Q = 2L^2 + 3K \), where Q is the quantity produced, L is labor, and K is capital. If the firm's budget constraint is given by \( R = 10L + 20K \), where R is the total revenue, and the firm's goal is to maximize profit, what is the optimal level of labor and capital?
A. \( L = 2, K = 3 \)
B. \( L = 3, K = 2 \)
C. \( L = 4, K = 1 \)
D. \( L = 1, K = 4 \)
Question 8
A monopolistically competitive firm faces a downward-sloping demand curve. What is the likely effect of an increase in the firm's \costs on its supply curve?
A. The supply curve shifts to the left.
B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve becomes perfectly elastic.
Question 9
A firm has a \cost function given by C(q) = 100 + 2q^2. If the firm produces 10 units of the product, what is the change in its total \cost?
A. ₦200
B. ₦400
C. ₦600
D. ₦800
Question 10
Suppose a country has a trade deficit of ₦100 billion and its exchange rate is ₦5 per dollar. If the country's central bank wants to reduce the trade deficit by 20%, what is the new exchange rate?
A. ₦4.50
B. ₦4.75
C. ₦5.00
D. ₦5.25
Question 11
The following diagram shows the supply and demand curves for a particular good. If the price of the good is currently 10, what is the equilibrium quantity?
A. 20
B. 30
C. 40
D. 50
Question 12
A country's balance of payments account shows a trade deficit of $10 billion, a current account deficit of $5 billion, and a capital account surplus of $3 billion. What is the value of the country's net foreign investment?
A. $2 billion
B. $5 billion
C. $8 billion
D. $10 billion
Question 13
A firm's demand function is given by Q = 100 - 2P. If the price elasticity of demand is cons\tant and equal to -2, what is the price at which the firm will sell 50 units?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 14
A central bank uses the following monetary policy tool to reduce inflation: it sells government securities on the open market. What is the likely effect of this action on the money supply?
A. The money supply decreases.
B. The money supply increases.
C. The money supply remains unchanged.
D. The money supply becomes perfectly elastic.
Question 15
A consumer's utility function is given by \( U = 2x + 3y \), where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by \( P_x x + P_y y = 100 \), where \( P_x \) and \( P_y \) are the prices of the two goods, and the consumer's goal is to maximize utility, what is the optimal level of consumption of the two goods?
A. \( x = 20, y = 30 \)
B. \( x = 30, y = 20 \)
C. \( x = 40, y = 10 \)
D. \( x = 10, y = 40 \)

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