POST UTME GREENFIELD UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The demand curve for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply curve is given by the equation Qs = 2P - 100, where Qs is the quantity supplied, what is the equilibrium price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 2
A firm has a total revenue function given by \( TR = 100Q - 2Q^2 \) and a total \cost function given by \( TC = 50Q + 2Q^2 \). What is the profit-maximizing quantity?
A. 10
B. 20
C. 30
D. 40
Question 3
The demand function for a product is given by Q = 100 - 2P. The supply function is given by Q = 2P - 50. Find the equilibrium price and quantity.
A. ₦50, Q = 50
B. ₦75, Q = 75
C. ₦100, Q = 100
D. ₦125, Q = 125
Question 4
The money supply in an economy is influenced by the following factors EXCEPT:
A. Reserve requirements
B. Open market operations
C. Discount rate
D. Government sp\ending
Question 5
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function given by C(Q) = 2Q^2 + 100Q. What is the profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 6
A consumer has a budget of ₦1000 and faces a price of ₦200 for a good. If the consumer's indifference curve is given by the equation U = 2x + 3y, where x is the quantity of the good consumed and y is the quantity of a complementary good, what is the optimal quantity of the good consumed?
A. 2
B. 3
C. 4
D. 5
Question 7
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, calculate the opportunity \cost of labor in terms of capital.
A. 0.5K
B. K^0.5
C. 2L^0.5
D. 4L
Question 8
A farmer in Nigeria has 100 hectares of land to cultivate maize. The opportunity \cost of cultivating maize is $10 per hectare. If the market price of maize is $15 per hectare, what is the maximum amount the farmer can afford to sp\end on fertilizers and other inputs?
A. $1000
B. $1500
C. $2000
D. $2500
Question 9
A firm operating in a perfectly competitive market has a demand curve given by \( Q = 100 - 2P \). If the firm produces 50 units, what is the price elasticity of demand?
A. 1
B. 2
C. 3
D. 4
Question 10
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is P = 10, and the firm's \cost function is C = 2L + 3K, what is the firm's profit-maximizing level of output?
A. \( Q = 10 \)
B. \( Q = 20 \)
C. \( Q = 30 \)
D. \( Q = 40 \)
Question 11
The demand for a product is said to be elastic if the percentage change in the quantity demanded is greater than the percentage change in the price. What is the formula for elasticity of demand?
A. %ΔQd/%ΔP
B. %ΔP/%ΔQd
C. %ΔQd + %ΔP
D. %ΔQd - %ΔP
Question 12
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. -20%
B. -10%
C. 0%
D. 10%
Question 13
A country imposes a tariff on imported goods to protect its domestic industry. What is the effect of this tariff on the domestic price of the good?
A. The domestic price increases
B. The domestic price decreases
C. The domestic price remains the same
D. The domestic price may increase or decrease dep\ending on the elasticity of demand
Question 14
A firm's opportunity \cost of producing a good is the:
A. Value of the next best alternative
B. Value of the good itself
C. Value of the inputs used to produce the good
D. Value of the good in terms of other goods
Question 15
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. average revenue curve
C. marginal \cost curve
D. average \cost curve

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