POST UTME LASU 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand curve is given by the equation Qd = 100 - 2P. If the firm's supply curve is Qs = 2P - 50, what is the firm's equilibrium price?
A. 20
B. 30
C. 40
D. 50
Question 2
The production function for a firm 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 increases labor from 4 units to 9 units and capital from 9 units to 16 units, what is the percentage increase in output?
A. 25%
B. 50%
C. 75%
D. 100%
Question 3
A firm's \cost function is given by the equation C(q) = 2q^2 + 5q + 10. If the firm's revenue function is R(q) = 3q^2 + 2q + 5, what is the firm's profit function?
A. P(q) = q^2 + 2q + 5
B. P(q) = 2q^2 + q + 5
C. P(q) = 3q^2 + q + 5
D. P(q) = 4q^2 + 2q + 5
Question 4
The Nigerian government has implemented a policy to increase the minimum wage. What is the likely effect on employment?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 5
A central bank uses the following monetary policy tools: open market operations, reserve requirements, and discount rate. Which of the following is NOT a tool used by the central bank?
A. Open Market Operations
B. Reserve Requirements
C. Discount Rate
D. Fiscal Policy
Question 6
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the equilibrium price and quantity of the product?
A. \( P = MC \)
B. \( P = MC + \frac{1}{n} \)
C. \( P = MC - \frac{1}{n} \)
D. \( P = MC + \frac{1}{n} \times \( TR - TC \ \) )
Question 7
A central bank increases the reserve requirement from 10% to 15%. What is the effect on the money supply?
A. The money supply increases.
B. The money supply decreases.
C. The money supply remains unchanged.
D. The money supply increases by 5%.
Question 8
A consumer's indifference curve is downward sloping, indicating that as the quantity of one good increases, the quantity of the other good decreases. What is the name of this phenomenon?
A. Diminishing Marginal Utility
B. Diminishing Returns to Scale
C. Giffen Paradox
D. Income Effect
Question 9
The Nigerian government has implemented policies to promote agricultural development. Which of the following is a likely consequence of these policies?
A. Increased food production
B. Reduced poverty
C. Increased inequality
D. Decreased economic growth
Question 10
A firm's demand function is given by Q = 100 - 2P, and its supply function is given by Q = 2P - 10. If the firm's current price is P = 20, calculate the firm's current quantity supplied and quantity demanded. Also, calculate the firm's current elasticity of demand and elasticity of supply.
A. Quantity supplied = 40, Quantity demanded = 30, Elasticity of demand = 2, Elasticity of supply = 0.5
B. Quantity supplied = 30, Quantity demanded = 40, Elasticity of demand = 0.5, Elasticity of supply = 2
C. Quantity supplied = 50, Quantity demanded = 20, Elasticity of demand = 1, Elasticity of supply = 1
D. Quantity supplied = 20, Quantity demanded = 50, Elasticity of demand = 0.5, Elasticity of supply = 2
Question 11
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 100, and the prices of the two goods are 2 and 5 respectively, what is the consumer's optimal consumption bundle?
A. x = 10, y = 10
B. x = 20, y = 5
C. x = 5, y = 20
D. x = 15, y = 15
Question 12
A firm's demand curve is given by Qd = 100 - 2P. If the firm's marginal revenue (MR) is 20, what is the firm's marginal \cost (MC)?
A. 10
B. 20
C. 30
D. 40
Question 13
A government imposes a tax of ₦10 on each unit of a good. If the pre-tax price of the good is ₦20, and the demand function for the good is given by Q = 100 - 2P, calculate the new price of the good and the quantity demanded after the tax is imposed.
A. New price = ₦25, Quantity demanded = 40
B. New price = ₦30, Quantity demanded = 30
C. New price = ₦35, Quantity demanded = 20
D. New price = ₦40, Quantity demanded = 10
Question 14
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and the firm's current output price is p = 50, calculate the firm's current profit-maximizing level of labor input.
A. 10
B. 20
C. 30
D. 40
Question 15
A government imposes a tax of ₦10 on a good that is sold at a price of ₦100. If the demand curve is elastic and the supply curve is inelastic, what is the incidence of the tax?
A. The tax is borne entirely by the consumers.
B. The tax is borne entirely by the producers.
C. The tax is shared equally between the consumers and producers.
D. The tax is borne entirely by the government.

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