POST UTME IGBINEDION UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a country with a mixed economy, where the government plays a significant role in the allocation of resources. U\sing the concept of opportunity \cost, explain why the government might choose to invest in a public transportation system rather than a private golf course.
A. The government can use the opportunity \cost to justify the investment in public transportation as a means of reducing congestion and improving air quality.
B. The government can use the opportunity \cost to justify the investment in the private golf course as a means of generating revenue and creating jobs.
C. The government can use the opportunity \cost to justify the investment in public transportation as a means of reducing traffic accidents and improving public health.
D. The government can use the opportunity \cost to justify the investment in the private golf course as a means of increa\sing tourism and boosting the local economy.
Question 2
A consumer's indifference curve is a graphical representation of the trade-offs between two goods. What is the shape of the indifference curve when the consumer is willing to give up a certain amount of one good for a certain amount of another good?
A. Convex
B. Concave
C. Linear
D. Quadratic
Question 3
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape on the consumer's marginal rate of substitution (MRS)?
A. The MRS is cons\tant along the indifference curve.
B. The MRS decreases as the consumer moves along the indifference curve.
C. The MRS increases as the consumer moves along the indifference curve.
D. The MRS is zero at the point of \tangency with the budget constraint.
Question 4
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $15 billion. What is the country's balance of trade?
A. Trade deficit of $5 billion
B. Trade surplus of $5 billion
C. Trade deficit of $10 billion
D. Trade surplus of $10 billion
Question 5
A firm is considering the introduction of a new product. U\sing the concept of elasticity of demand, explain why the firm might choose to price the product at a level that is less elastic than the demand for its existing products.
A. The firm can use the concept of elasticity of demand to justify pricing the product at a level that is less elastic than the demand for its existing products as a means of increa\sing revenue and market share.
B. The firm can use the concept of elasticity of demand to justify pricing the product at a level that is less elastic than the demand for its existing products as a means of reducing competition and increa\sing profit margins.
C. The firm can use the concept of elasticity of demand to justify pricing the product at a level that is less elastic than the demand for its existing products as a means of improving customer satisfaction and loyalty.
D. The firm can use the concept of elasticity of demand to justify pricing the product at a level that is less elastic than the demand for its existing products as a means of increa\sing the product's perceived value and premium pricing.
Question 6
A firm's total revenue is given by TR = 100P^2 - 200P + 100. Determine the price that maximizes total revenue.
A. P = ₦20
B. P = ₦30
C. P = ₦40
D. P = ₦50
Question 7
A country's GDP is given by the following table:\n\n| Year | 2018 | 2019 |\n| --- | --- | --- |\n| Consumption | ₦1000 | ₦1200 |\n| Investment | ₦500 | ₦600 |\n| Government Exp\enditure | ₦200 | ₦250 |\n| Net Exports | ₦100 | ₦150 |\n\nWhat is the country's GDP growth rate from 2018 to 2019?
A. 10%
B. 15%
C. 20%
D. 25%
Question 8
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 2x + 3y = 12, and the prices of the two goods are p_x = 2 and p_y = 3, respectively, what is the consumer's optimal consumption bundle?
A. (2, 2)
B. (4, 1)
C. (6, 0)
D. (0, 4)
Question 9
A firm is considering two alternative production processes. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, determine the break-even point for each process.
A. 10,000 units
B. 20,000 units
C. 30,000 units
D. 40,000 units
Question 10
A government is considering the introduction of a new tax on luxury goods. U\sing the concept of public finance, explain why the government might choose to implement the tax.
A. The government can use the concept of public finance to justify implementing the tax as a means of increa\sing government revenue and reducing the budget deficit.
B. The government can use the concept of public finance to justify implementing the tax as a means of reducing income inequality and poverty.
C. The government can use the concept of public finance to justify implementing the tax as a means of improving the efficiency of the tax system and reducing tax evasion.
D. The government can use the concept of public finance to justify implementing the tax as a means of increa\sing the government's ability to provide public goods and services.
Question 11
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). What does the letter 'C' represent in this formula?
A. Consumption
B. Investment
C. Government Exp\enditure
D. Net Exports
Question 12
A firm is considering investing in a new project. The project has a fixed \cost of ₦1,000,000 and a variable \cost of ₦500 per unit produced. If the selling price of the product is ₦1,200 per unit, what is the break-even point?
A. 1,000 units
B. 5,000 units
C. 10,000 units
D. 20,000 units
Question 13
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is the quantity produced, L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200K = 10000, find the optimal values of L and K.
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 50
D. L = 50, K = 200
Question 14
A consumer's budget constraint is given by 2x + 3y = 12, where x and y are the quantities of two goods consumed. If the consumer's utility function is U = 2x + y, find the optimal quantities of x and y.
A. x = 4, y = 2
B. x = 2, y = 4
C. x = 6, y = 0
D. x = 0, y = 6
Question 15
A perfectly competitive market has a downward-sloping demand curve and a horizontal supply curve. What is the equilibrium price and quantity in this market?
A. Price = $10, Quantity = 100
B. Price = $5, Quantity = 50
C. Price = $20, Quantity = 200
D. Price = $15, Quantity = 150

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: