POST UTME GREENFIELD UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good with a total revenue of ₦200,000 and a total \cost of ₦150,000. The firm's marginal revenue is ₦10,000 and its marginal \cost is ₦5,000. What is the firm's profit-maximizing output?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 2
A country is experiencing a trade surplus of ₦50,000. The country's imports are valued at ₦100,000 and its exports are valued at ₦150,000. What is the country's balance of payments position?
A. The country has a trade surplus and a current account surplus.
B. The country has a trade deficit and a current account deficit.
C. The country has a trade surplus and a current account deficit.
D. The country has a trade deficit and a current account surplus.
Question 3
A central bank is considering a monetary policy action to reduce inflation. If the current inflation rate is 5% and the target inflation rate is 2%, what is the required reduction in the money supply?
A. 10%
B. 15%
C. 20%
D. 25%
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 9 units, and holds capital input cons\tant at 16 units, what is the percentage change in output?
A. 25%
B. 50%
C. 75%
D. 100%
Question 5
A firm's \cost function is given by (C(q) = 10q + 20). If the firm's revenue function is (R(q) = 20q), what is the firm's profit-maximizing quantity?
A. \( q = 2 \)
B. \( q = 5 \)
C. \( q = 10 \)
D. \( q = 15 \)
Question 6
A government is considering a tax on a good with a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P. What is the deadweight loss of the tax?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 10Q + 100. What is the profit-maximizing price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 8
A firm's supply function is given by P = 2Q + 10. If the firm increases its output from 5 units to 10 units, what is the change in price?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 9
A firm's supply function is given by P = 2Q + 10. If the firm increases its output from 5 units to 10 units, what is the change in price?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 10
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward-sloping and the firms are price-takers, what is the equilibrium price and quantity?
A. \( P = 10, Q = 100 \)
B. \( P = 20, Q = 50 \)
C. \( P = 30, Q = 200 \)
D. \( P = 40, Q = 150 \)
Question 11
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q. Find the marginal \cost function.
A. 4Q + 10
B. 2Q + 5
C. Q + 5
D. Q + 10
Question 12
A country is experiencing a trade deficit of ₦100,000. The country's imports are valued at ₦150,000 and its exports are valued at ₦50,000. What is the country's balance of payments position?
A. The country has a trade deficit and a current account deficit.
B. The country has a trade surplus and a current account surplus.
C. The country has a trade deficit and a current account surplus.
D. The country has a trade surplus and a current account deficit.
Question 13
A firm's profit function is given by \( pi = R - C \), where ( R ) is revenue and ( C ) is \cost. If the firm's revenue function is ( R(x) = 20x - x^2 ) and \cost function is ( C(x) = 2x^2 + 10x + 5 ), what is the profit-maximizing output level?
A. 5
B. 10
C. 15
D. 20
Question 14
A government imposes a tax of ₦10 on a firm's output. If the firm's supply curve is given by \( Q = 2P - 10 \), what is the firm's new supply curve?
A. \( Q = 2P - 20 \)
B. \( Q = 2P - 15 \)
C. \( Q = 2P - 10 \)
D. \( Q = 2P + 5 \)
Question 15
A firm's production function is given by the equation Q = 2L + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm has 10 labor units and 5 capital units, what is the quantity produced?
A. 20
B. 30
C. 40
D. 50

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