POST UTME LAUTECH 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The formula for calculating the elasticity of demand is given by: \( E_d = \frac{% \text{ change in quantity demanded}}{% \text{ change in price}} \). What does the term '% change in quantity demanded' represent in this formula?
A. The percentage change in the quantity demanded of the good
B. The percentage change in the price of the good
C. The percentage change in the income of the consumer
D. The percentage change in the price of a related good
Question 2
A firm's production function is given by \( Q = 2L^{1/2}K^{1/2} \). If the firm's output is 16 units and the price of labor is ₦10 per unit, what is the minimum \cost of production?
A. ₦160
B. ₦320
C. ₦640
D. ₦1280
Question 3
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. If the percentage change in the exchange rate is 10% and the percentage change in the export price is 15%, what is the minimum percentage change in the import price required for the Marshall-Lerner condition to hold?
A. 5%
B. 10%
C. 15%
D. 20%
Question 4
The Central Bank of Nigeria (CBN) uses monetary policy to control inflation. Which of the following tools of monetary policy is most effective in reducing inflation?
A. Open Market Operations
B. Reserve Requirements
C. Discount Rate
D. Quantitative Ea\sing
Question 5
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the price elasticity of supply?
A. 0.5
B. 1
C. 2
D. 3
Question 6
A firm is operating in a monopoly market. If the firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price, and the firm's marginal \cost is $8, what is the firm's profit-maximizing output?
A. 50
B. 70
C. 80
D. 90
Question 7
Consider a firm with a production function Q = 3L^0.5K^0.5. If the firm's current input prices are w = ₦150 and r = ₦300, and the firm's current output price is p = ₦600, calculate the firm's current profit-maximizing level of output.
A. 150 units
B. 200 units
C. 250 units
D. 300 units
Question 8
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's current price is ₦50, calculate the quantity demanded.
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 9
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the firm's current output price is p = ₦500, calculate the firm's current profit-maximizing level of output.
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 10
A perfectly competitive firm's supply curve is given by the equation Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the price is 20, what is the quantity supplied?
A. 120
B. 140
C. 160
D. 180
Question 11
An indifference curve is a graphical representation of the various combinations of two goods that a consumer is equally willing to give up in order to have more of one good. Which of the following statements about indifference curves is correct?
A. An indifference curve is a graphical representation of the various combinations of two goods that a consumer is equally willing to give up in order to have more of one good.
B. An indifference curve is a graphical representation of the various combinations of two goods that a consumer is equally willing to give up in order to have more of both goods.
C. An indifference curve is a graphical representation of the various combinations of two goods that a consumer is equally willing to give up in order to have more of neither good.
D. An indifference curve is a graphical representation of the various combinations of two goods that a consumer is equally willing to give up in order to have more of one good, but not the other.
Question 12
An economy is said to be in a state of stagflation if it experiences both high inflation and high unemployment. U\sing the Phillips Curve model, explain why this phenomenon occurs.
A. The Phillips Curve shows a negative relationship between inflation and unemployment.
B. The Phillips Curve shows a positive relationship between inflation and unemployment.
C. The Phillips Curve shows a negative relationship between inflation and unemployment, but the curve shifts to the right due to stagflation.
D. The Phillips Curve shows a positive relationship between inflation and unemployment, but the curve shifts to the left due to stagflation.
Question 13
An economy is said to be in a state of stagflation when there is both high inflation and high unemployment. Which of the following is a characteristic of stagflation?
A. High inflation and low unemployment
B. High inflation and high unemployment
C. Low inflation and high unemployment
D. Low inflation and low unemployment
Question 14
A firm is producing a good with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, what is the total \cost of production?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A country's GDP is ₦100 billion and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

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