POST UTME LASU 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government of Nigeria has introduced a new policy aimed at increa\sing agricultural production. The policy includes a subsidy on fertilizers and a loan scheme for farmers. What is the effect of this policy on the supply curve of agricultural products?
A. Shift to the left
B. Shift to the right
C. No change
D. Uncertainty
Question 2
A firm's production function is given by \( Q = 100K^0.5L^0.5 \), where Q is output, K is capital, and L is labor. If the firm's capital stock is 100 units and labor is 100 units, what is the marginal product of labor?
A. \( 0.5 \times 100^{0.5} \times L^{-0.5} \)
B. \( 0.5 \times 100^{0.5} \times L^{0.5} \)
C. \( 100^{0.5} \times L^{0.5} \)
D. \( 100^{0.5} \times L^{-0.5} \)
Question 3
A firm is producing a good with a decrea\sing returns to scale production function. If the price of the good increases by 20%, what will be the effect on the firm's output?
A. The firm's output will increase by 20%.
B. The firm's output will decrease by 20%.
C. The firm's output will remain unchanged.
D. The firm's output will increase by 10%.
Question 4
The supply of a good is directly related to its price. This is an example of which economic concept?
A. Law of Supply
B. Law of Demand
C. Law of Diminishing Marginal Utility
D. Law of Increa\sing Marginal Utility
Question 5
A monopolistic firm in Nigeria produces a product with a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price and quantity of the product?
A. P = ₦20, Q = 40
B. P = ₦30, Q = 50
C. P = ₦40, Q = 60
D. P = ₦50, Q = 70
Question 6
A firm's \cost function is given by \( C = 100K + 200L \), where C is \cost, K is capital, and L is labor. If the firm's capital stock is 50 units and labor is 50 units, what is the total \cost?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 7
The opportunity \cost of producing one more unit of a good is equal to the marginal \cost of producing that good. This is an example of which economic concept?
A. Law of Diminishing Returns
B. Law of Increa\sing Opportunity Cost
C. Law of Diminishing Marginal Utility
D. Law of Increa\sing Marginal Utility
Question 8
A firm in Nigeria is producing a product with a production function Q = 2L + 3K, where L is labor and K is capital. If the firm is currently producing 10 units of the product and wants to increase production to 15 units, what is the required increase in labor and capital?
A. Increase in labor by 5 units, increase in capital by 10 units
B. Increase in labor by 10 units, increase in capital by 20 units
C. Increase in labor by 15 units, increase in capital by 30 units
D. Increase in labor by 20 units, increase in capital by 40 units
Question 9
The government of Nigeria has introduced a new tax policy to increase revenue. The policy includes a 10% tax on all income above ₦500,000. If a person earns ₦750,000 per year, how much tax will they pay?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 10
A firm is producing a good with a cons\tant returns to scale production function. If the price of the good decreases by 20%, what will be the effect on the firm's output?
A. The firm's output will increase by 20%.
B. The firm's output will decrease by 20%.
C. The firm's output will remain unchanged.
D. The firm's output will increase by 10%.
Question 11
A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are ₦10 and ₦20 respectively, and the consumer has a budget of ₦100, find the optimal quantities of x and y that will maximize the consumer's utility.
A. x = 5, y = 2
B. x = 2, y = 5
C. x = 10, y = 5
D. x = 5, y = 10
Question 12
A central bank is considering a monetary policy to reduce inflation. If the central bank decreases the reserve requirement for commercial banks, what will be the effect on the money supply?
A. The money supply will increase.
B. The money supply will decrease.
C. The money supply will remain unchanged.
D. The money supply will increase at a decrea\sing rate.
Question 13
The government of Nigeria has introduced a new policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the availability of fertilizers. However, the policy has been criticized for being too expensive and not addres\sing the root causes of the problem. What is the main economic concept underlying this policy?
A. Supply-side economics
B. Demand-side economics
C. Market failure
D. Government intervention
Question 14
A government is considering a tax on a particular good. If the tax is implemented, what will be the effect on the supply of the good?
A. The supply of the good will increase.
B. The supply of the good will decrease.
C. The supply of the good will remain unchanged.
D. The supply of the good will increase at a decrea\sing rate.
Question 15
A consumer has the following budget constraint: 2x + 3y = 100. If the prices of x and y are ₦10 and ₦20 respectively, find the optimal quantities of x and y that will maximize the consumer's utility.
A. x = 20, y = 10
B. x = 10, y = 20
C. x = 30, y = 10
D. x = 10, y = 30

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