POST UTME IMS U 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolistically competitive firm's demand curve is downward-sloping because it is a
A. price-taker
B. price-maker
C. price-setter
D. price-follower
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm uses 4 units of labor and 9 units of capital, what is the output?
A. 12
B. 16
C. 20
D. 24
Question 3
A firm's \cost function is given by \( C = 2L + 3K \). If the firm's output is 100 units and the price of labor is ₦10, find the optimal input combination of labor and capital.
A. (L,K) = (5, 5)
B. (L,K) = (10, 10)
C. (L,K) = (15, 15)
D. (L,K) = (20, 20)
Question 4
A government imposes a tax of ₦10 on a good that is sold at a price of ₦50. If the demand for the good is given by \( Q = 100 - 2P \) and the supply of the good is given by \( Q = 2P - 100 \), find the new equilibrium price and quantity.
A. P = 40, Q = 60
B. P = 30, Q = 70
C. P = 20, Q = 80
D. P = 10, Q = 90
Question 5
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. Which of the following is a possible effect of this tax?
A. The firm's supply curve shifts to the right.
B. The firm's supply curve shifts to the left.
C. The firm's supply curve remains unchanged.
D. The firm's supply curve shifts upwards.
Question 6
The demand function for a product is given by p = 100 - 2q, where p is the price and q is the quantity demanded. If the supply function is given by p = 2q + 10, what is the equilibrium price and quantity?
A. p = 40, q = 15
B. p = 60, q = 20
C. p = 80, q = 25
D. p = 100, q = 30
Question 7
A government imposes a tax of ₦10 on a good that is sold at a price of ₦50. If the demand for the good is given by \( Q = 100 - 2P \) and the supply of the good is given by \( Q = 2P - 100 \), find the new equilibrium price and quantity.
A. P = 40, Q = 60
B. P = 30, Q = 70
C. P = 20, Q = 80
D. P = 10, Q = 90
Question 8
A firm is operating in the short run and has a total revenue of ₦100,000 and total \cost of ₦80,000. What is the economic profit of the firm?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 9
A country's budget is given by B = 100 + 0.2Y, where Y is the GDP. If the GDP is 500, what is the budget?
A. ₦150
B. ₦120
C. ₦180
D. ₦200
Question 10
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's \cost function is C(x) = 3x^2 + 2x + 5, what is the profit function?
A. -x^2 + 3x - 4
B. x^2 - 3x + 4
C. x^2 + 3x - 4
D. -x^2 - 3x + 4
Question 11
A central bank increases the reserve requirement for commercial banks. What will be the effect on the money supply?
A. Money supply will increase
B. Money supply will decrease
C. Money supply will remain unchanged
D. Money supply will increase in the short run but decrease in the long run
Question 12
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q. If the firm produces 5 units of output, what is the total \cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 13
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain unchanged
D. Total revenue will increase in the short run but decrease in the long run
Question 14
A government is considering a policy to reduce the price of a good from ₦10 to ₦8. If the demand for the good is given by the equation \( Q = 100 - 5P \), where (P) is the price, what is the new quantity demanded?
A. 50
B. 60
C. 70
D. 80
Question 15
A firm's tax liability is given by T = 0.1I, where I is the income. If the income is 10000, what is the tax liability?
A. 1000
B. 2000
C. 3000
D. 4000

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