POST UTME KSU 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where L is labor and K is capital. The production function for good Y is given by Q_Y = 3L^0.2K^0.8. What is the marginal rate of technical substitution (MRTS) of labor for good X with respect to good Y?
A. MRTS_L = 1.5L^0.1K^0.2
B. MRTS_L = 2L^0.3K^0.1
C. MRTS_L = 3L^0.1K^0.3
D. MRTS_L = 4L^0.2K^0.4
Question 2
A country's inflation rate is 8% per annum. If the current price level is ₦100, what will be the price level after 2 years?
A. ₦112
B. ₦120
C. ₦128
D. ₦144
Question 3
A firm is operating in a perfectly competitive market. If the firm increases its production, what will happen to its price?
A. Increase
B. Decrease
C. Remain the same
D. Become indeterminate
Question 4
A firm's total revenue (TR) and total \cost (TC) curves are given by the equations TR = 100Q and TC = 10 + 2Q + 0.1Q^2. If the firm produces 100 units of output, what is the profit?
A. ₦9000
B. ₦10000
C. ₦11000
D. ₦12000
Question 5
Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the GDP per capita is ₦50,000, what is the implied average annual income per person in the country?
A. ₦100,000
B. ₦50,000
C. ₦25,000
D. ₦10,000
Question 6
A firm's revenue function is given by R(Q) = 100Q - 2Q^2, where Q is the quantity produced. If the firm produces 20 units, what is the total revenue?
A. ₦1200
B. ₦1500
C. ₦1800
D. ₦2000
Question 7
A country's GDP is $100 billion, and its GNP is $120 billion. What is the net factor income from abroad?
A. $20 billion
B. $30 billion
C. $40 billion
D. $50 billion
Question 8
A country's balance of payments accounts show a trade deficit of $100 billion and a capital account surplus of $50 billion. What is the overall balance of payments position?
A. A trade deficit of $50 billion.
B. A trade surplus of $50 billion.
C. A balance of payments deficit of $50 billion.
D. A balance of payments surplus of $50 billion.
Question 9
The concept of scarcity refers to the limited availability of resources. Which of the following is a characteristic of scarcity?
A. Scarcity is a characteristic of abundance.
B. Scarcity is a characteristic of plenty.
C. Scarcity is a characteristic of limited availability.
D. Scarcity is a characteristic of unlimited availability.
Question 10
A firm is considering the introduction of a new product. The demand for the product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its profit, what should be the price of the product?
A. $20
B. $30
C. $40
D. $50
Question 11
The concept of market structure refers to the characteristics of a market that affect the behavior of firms. Which of the following is a characteristic of a perfectly competitive market?
A. The market has a \single buyer.
B. The market has a \single seller.
C. The market has many buyers and sellers.
D. The market has a downward-sloping demand curve.
Question 12
A firm is considering two investment projects. Project A has a 5-year payback period and requires an initial investment of ₦1.5 million. Project B has a 3-year payback period and requires an initial investment of ₦2 million. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 13
The production function is a mathematical representation of the relationship between inputs and outputs. Which of the following is a characteristic of a production function?
A. The production function is a linear function.
B. The production function is a nonlinear function.
C. The production function is a cons\tant function.
D. The production function is a decrea\sing function.
Question 14
A country's GDP is ₦10 trillion. If the government sp\ends ₦2 trillion on infrastructure, what is the new GDP?
A. ₦8 trillion
B. ₦10 trillion
C. ₦12 trillion
D. ₦14 trillion
Question 15
The concept of opportunity \cost is closely related to the concept of scarcity. Which of the following statements is true about opportunity \cost?
A. Opportunity \cost is the \cost of producing one unit of a good.
B. Opportunity \cost is the \cost of producing one unit of a good relative to another good.
C. Opportunity \cost is the benefit of producing one unit of a good.
D. Opportunity \cost is the \cost of not producing one unit of a good.

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