POST UTME LAUTECH 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The indifference curve for a consumer is downward sloping because of the law of increa\sing marginal utility. What is the implication of this law on the consumer's behavior?
A. The consumer will always choose the combination of goods that gives the highest marginal utility.
B. The consumer will always choose the combination of goods that gives the highest total utility.
C. The consumer will always choose the combination of goods that gives the highest marginal utility per unit of money spent.
D. The consumer will always choose the combination of goods that gives the highest marginal utility per unit of time spent.
Question 2
A firm produces a commodity u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L + 3K. If the firm has 10 units of labor and 8 units of capital, find the marginal product of labor and the marginal product of capital.
A. 2, 3
B. 3, 2
C. 4, 5
D. 5, 4
Question 3
A firm has a production function of \( Q = 10L^0.5K^0.5 \). If the firm uses 100 units of labor and 400 units of capital, what is the output level?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 4
A firm operates in a perfectly competitive market. If the market price is $10 and the firm's marginal \cost is $8, what is the firm's profit-maximizing quantity?
A. 100 units
B. 200 units
C. 500 units
D. 1000 units
Question 5
A firm's \cost function is given by C = 100 + 2L + 3H, where C is \cost, L is labor and H is capital. The firm's revenue function is given by R = 200L + 300H. Find the optimal level of labor and capital that maximizes profit.
A. L = 50, H = 100
B. L = 100, H = 50
C. L = 75, H = 75
D. L = 25, H = 25
Question 6
A country's import demand function is given by \( MD = 100 - 2P \), where P is the price of the imported good. If the price of the imported good is $50, what is the quantity demanded?
A. 25 units
B. 30 units
C. 20 units
D. 40 units
Question 7
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The budget constraint is given by 2x + 3y = 100. What is the consumer's optimal bundle of goods?
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 10, y = 40
Question 8
A country's economic growth is measured by its GDP per capita. What is the likely effect of an increase in GDP per capita on the country's s\tandard of living?
A. The s\tandard of living will increase.
B. The s\tandard of living will decrease.
C. The s\tandard of living will remain unchanged.
D. The s\tandard of living will fluctuate randomly.
Question 9
A government imposes a tax on a particular good. What is the likely effect on the supply of that 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 fluctuate randomly.
Question 10
A country's trade balance is in surplus. What is the likely effect on the country's exchange rate?
A. The exchange rate will appreciate.
B. The exchange rate will depreciate.
C. The exchange rate will remain unchanged.
D. The exchange rate will fluctuate randomly.
Question 11
Agricultural development in Nigeria has been hindered by the lack of access to credit facilities. Which of the following is a consequence of this lack of access?
A. Increased production \costs
B. Reduced investment in agriculture
C. Increased food prices
D. No impact on agricultural development
Question 12
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200H = 10000, find the optimal level of labor and capital that maximizes output.
A. L = 100, H = 50
B. L = 50, H = 100
C. L = 100, H = 100
D. L = 50, H = 50
Question 13
The demand curve for a product is downward sloping, indicating that as the price of the product increases, the quantity demanded decreases. What is the effect of an increase in income on the demand curve?
A. Shift to the left
B. Shift to the right
C. No change
D. Increase in price
Question 14
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. The consumer's budget constraint is 2x + 3y = 100. Find the optimal quantities of x and y that maximize utility.
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 25, y = 25
D. x = 40, y = 10
Question 15
A country's trade deficit is financed by borrowing from abroad. What is the likely effect on the country's exchange rate?
A. The exchange rate will appreciate.
B. The exchange rate will depreciate.
C. The exchange rate will remain unchanged.
D. The exchange rate will fluctuate randomly.

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