POST UTME IMS U 2025 Economics | Objective

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Question 1
A firm operating under perfect competition faces a market demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 50 - 2Q. If the firm's marginal \cost (MC) is cons\tant at ₦20, what is the profit-maximizing quantity of output?
A. ₦40
B. ₦60
C. ₦80
D. ₦100
Question 2
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 50 - 2Q. If the firm's marginal \cost (MC) is cons\tant at ₦20, what is the profit-maximizing quantity of output?
A. ₦40
B. ₦60
C. ₦80
D. ₦100
Question 3
A consumer's budget constraint is given by 2x + 3y = 18, where x is the quantity of good x and y is the quantity of good y. If the consumer's indifference curve is given by u(x, y) = 2x + y, what is the optimal bundle of goods?
A. x = 3, y = 6
B. x = 4, y = 4
C. x = 5, y = 3
D. x = 6, y = 2
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P and a marginal revenue (MR) curve given by MR = 20 - 2P. What is the monopolist's optimal price \( P* \)?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A firm is producing a product u\sing a production function given by \( Q = 3L^{0.5}K^{0.5} \). If the firm's \cost function is given by \( C = 20L + 30K \), find the firm's optimal input bundle of labor and capital.
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 20, K = 200
D. L = 10, K = 400
Question 6
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 wants to increase its output by 20%, what is the required percentage increase in labor and capital?
A. Labor: 10%, Capital: 10%
B. Labor: 15%, Capital: 15%
C. Labor: 20%, Capital: 20%
D. Labor: 25%, Capital: 25%
Question 7
A government imposes a tax of ₦10 on a firm's output. The firm's supply curve is given by Q = 2P. If the firm produces x units of output, what is the new supply curve?
A. Q = 2P + 10
B. Q = 2P - 10
C. Q = 2P + 20
D. Q = 2P - 20
Question 8
The concept of comparative advantage is a fundamental principle in international trade, which states that countries should specialize in producing goods for which they have a lower opportunity \cost. Which of the following is a correct example of comparative advantage?
A. Country A has a lower opportunity \cost of producing good X compared to country B
B. Country A has a higher opportunity \cost of producing good X compared to country B
C. Country A has a lower opportunity \cost of producing good Y compared to country B
D. Country A has a higher opportunity \cost of producing good Y compared to country B
Question 9
A firm is considering two different production processes. Process A has a fixed \cost of ₦1000 and a variable \cost of ₦5 per unit, while Process B has a fixed \cost of ₦500 and a variable \cost of ₦10 per unit. If the firm produces 100 units of output, what is the total \cost of each process?
A. Process A: ₦1500, Process B: ₦1000
B. Process A: ₦2000, Process B: ₦1500
C. Process A: ₦2500, Process B: ₦2000
D. Process A: ₦3000, Process B: ₦2500
Question 10
The opportunity \cost of producing one more unit of a good is the value of the next best alternative that could have been produced with the same resources. This concept is closely related to the law of increa\sing opportunity \costs, which states that as the production of a good increases, the opportunity \cost of producing one more unit also increases. Which of the following statements is a correct interpretation of the law of increa\sing opportunity \costs?
A. The law of increa\sing opportunity \costs implies that as the production of a good increases, the opportunity \cost of producing one more unit decreases.
B. The law of increa\sing opportunity \costs implies that as the production of a good increases, the opportunity \cost of producing one more unit remains cons\tant.
C. The law of increa\sing opportunity \costs implies that as the production of a good increases, the opportunity \cost of producing one more unit also increases.
D. The law of increa\sing opportunity \costs implies that as the production of a good increases, the opportunity \cost of producing one more unit decreases and then increases.
Question 11
The concept of opportunity \cost is closely related to the concept of scarcity. Opportunity \cost refers to the value of the next best alternative that could have been produced with the same resources. Which of the following is a correct example of an opportunity \cost?
A. The \cost of producing a good
B. The \cost of not producing a good
C. The value of the next best alternative that could have been produced with the same resources
D. The \cost of producing a service
Question 12
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is given by MR = 200 - 2Q, what is the optimal price?
A. P = 20
B. P = 30
C. P = 40
D. P = 50
Question 13
A monopolist faces a market demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 50 - 2Q. If the firm's marginal \cost (MC) is cons\tant at ₦20, what is the profit-maximizing quantity of output?
A. ₦40
B. ₦60
C. ₦80
D. ₦100
Question 14
A firm's \cost function is given by C(q) = 2q^2 + 10q + 100. If the firm produces 20 units of output, what is the total \cost?
A. ₦1500
B. ₦2000
C. ₦2500
D. ₦3000
Question 15
The concept of scarcity is a fundamental principle in economics, which states that the needs and wants of individuals are unlimited, but the resources available to satisfy those needs and wants are limited. This leads to the necessity of making choices and trade-offs. Which of the following is a correct example of a trade-off?
A. Choo\sing between a higher salary and a shorter working week
B. Choo\sing between a new car and a vacation
C. Choo\sing between a higher education and a career in the arts
D. Choo\sing between a new smartphone and a laptop

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