POST UTME KSU 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's inflation rate is 5% and its nominal interest rate is 10%. What is the real interest rate?
A. 5%
B. 10%
C. 15%
D. 20%
Question 2
A firm's production function is given by Q = 2L^2 + 5K, where Q is the output, L is the labor and K is the capital. If the firm uses 10 units of labor and 5 units of capital, what is the output?
A. 50
B. 75
C. 100
D. 125
Question 3
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production functions are given by Q_A = 2L^0.5K^0.5 and Q_B = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, find the optimal allocation of labor and capital between the two goods.
A. L_A = 50, L_B = 50, K_A = 25, K_B = 25
B. L_A = 75, L_B = 25, K_A = 37.5, K_B = 12.5
C. L_A = 100, L_B = 0, K_A = 50, K_B = 0
D. L_A = 0, L_B = 100, K_A = 0, K_B = 50
Question 4
A firm's total revenue is given by the equation TR = 2Q^2 - 5Q + 10, where Q is the quantity sold. If the firm sells 10 units, what is the total revenue?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 5
A firm's production function is given by \( Q = 2L^0.5K^0.5 \), where ( Q ) is the quantity produced, ( L ) is the amount of labor used, and ( K ) is the amount of capital used. If the firm's \cost function is given by \( C = 100L + 200K \), what is the value of ( L ) when the firm's marginal product of labor is equal to its wage?
A. 10
B. 20
C. 30
D. 40
Question 6
A firm's total revenue function is given by TR = 2x^2 + 5x, where x is the quantity of the good produced. Find the marginal revenue function and the average revenue function.
A. MR = 4x + 5, AR = 2 + 5/x
B. MR = 4x - 5, AR = 2 - 5/x
C. MR = 4x + 5, AR = 2 - 5/x
D. MR = 4x - 5, AR = 2 + 5/x
Question 7
A firm's \cost function is given by C = 2x^2 + 5x, where x is the quantity of the good produced. Find the marginal \cost function and the average \cost function.
A. MC = 4x + 5, AC = 2 + 5/x
B. MC = 4x - 5, AC = 2 - 5/x
C. MC = 4x + 5, AC = 2 - 5/x
D. MC = 4x - 5, AC = 2 + 5/x
Question 8
A company in Nigeria produces two products, A and B. The \cost of producing product A is ₦50,000 per unit, and the \cost of producing product B is ₦60,000 per unit. If the company produces 100 units of product A and 50 units of product B, what is the total \cost of production?
A. ₦6,000,000
B. ₦7,000,000
C. ₦8,000,000
D. ₦9,000,000
Question 9
A government imposes a tax of ₦10 on a good. If the demand for the good is given by the equation Qd = 100 - 2P and the supply is given by Qs = 2P - 10, what is the new equilibrium price?
A. ₦60
B. ₦70
C. ₦80
D. ₦90
Question 10
A firm has a total revenue function of \( TR = 100x - 2x^2 \) and a total \cost function of \( TC = 50x + 10x^2 \). Determine the profit-maximizing level of output.
A. x = 5
B. x = 10
C. x = 15
D. x = 20
Question 11
The Nigerian government is considering a policy to increase agricultural production. The policy involves providing subsidies to farmers. If the demand for agricultural products is given by Q = 100 - 2P and the supply function is Q = 2P + 10, find the price and quantity of agricultural products after the policy is implemented.
A. P = 20, Q = 40
B. P = 30, Q = 50
C. P = 40, Q = 60
D. P = 50, Q = 70
Question 12
A government has a tax function of \( T = 100 + 0.1Y \) and a government exp\enditure function of \( G = 200 + 0.2Y \). Determine the equilibrium level of government revenue.
A. Y = 1000
B. Y = 2000
C. Y = 3000
D. Y = 4000
Question 13
Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average annual income is ₦50,000, what is the implied GDP per capita?
A. ₦25,000
B. ₦50,000
C. ₦100,000
D. ₦200,000
Question 14
Suppose the demand for a product is given by the equation Qd = 100 - 2P and the supply is given by Qs = 2P - 10. If the market is in equilibrium, what is the price of the product?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 15
A consumer in Nigeria has a budget of ₦100,000 per month. The consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of units of good X and y is the number of units of good Y. If the price of good X is ₦50 per unit and the price of good Y is ₦60 per unit, how many units of good X should the consumer buy?
A. 10 units
B. 20 units
C. 30 units
D. 40 units

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