POST UTME LAUTECH 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Agricultural production in Nigeria is characterized by a high degree of seasonality. What is the main reason for this seasonality?
A. Climate change
B. Variability in rainfall
C. Soil degradation
D. Lack of irrigation
Question 2
A consumer has the following utility function: U = 2x + 3y. The prices of x and y are $2 and $3 respectively. The consumer's income is $15. U\sing the budget constraint, find the optimal levels of x and y that maximize the consumer's utility.
A. \( x^* = 3, y^* = 2 \)
B. \( x^* = 2, y^* = 3 \)
C. \( x^* = 1, y^* = 4 \)
D. \( x^* = 4, y^* = 1 \)
Question 3
A monopolistically competitive firm faces a demand curve given by the equation Qd = 100 - 2P + 10X, where P is the price and X is the number of firms. If the firm produces 20 units, what is the price it will charge?
A. \₦20
B. \₦30
C. \₦40
D. \₦50
Question 4
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity \cost. Which of the following countries is likely to have a comparative advantage in producing wheat?
A. Country A, which has a large amount of fertile land and a favorable climate for wheat production
B. Country B, which has a large population and a high demand for wheat
C. Country C, which has a high opportunity \cost of producing wheat due to its limited land and resources
D. Country D, which has a low opportunity \cost of producing wheat due to its abundant land and resources
Question 5
A firm's revenue function is given by R(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 10, find the value of x that maximizes revenue.
A. 5
B. 10
C. 15
D. 20
Question 6
A firm's marginal revenue is given by the equation MR = 100 - 2x, where x is the number of units sold. If the firm sells 20 units, what is its marginal revenue?
A. \₦80
B. \₦90
C. \₦100
D. \₦110
Question 7
A firm is considering a new marketing strategy that involves increa\sing its adverti\sing budget by 20%. If the firm's current adverti\sing budget is ₦500,000, what is the new adverti\sing budget?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 8
A firm has a production function Q = 3L^0.5K^0.5. The price of the good is P = 10 and the wage rate is W = 5. U\sing the first-order conditions for profit maximization, find the optimal levels of labor \( L* \) and capital \( K* \).
A. \( L^* = 100, K^* = 100 \)
B. \( L^* = 50, K^* = 50 \)
C. \( L^* = 200, K^* = 200 \)
D. \( L^* = 25, K^* = 25 \)
Question 9
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. \₦1000
B. \₦1200
C. \₦1800
D. \₦2000
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, find the optimal input combination.
A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 0, K = 0
Question 11
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point A, and the price elasticity of demand (PED) is 2, what is the likely effect on the firm's output and price?
A. The firm will increase output and decrease price.
B. The firm will decrease output and increase price.
C. The firm will increase output and increase price.
D. The firm will decrease output and decrease price.
Question 12
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 it currently uses 4 units of labor and 9 units of capital, calculate the firm's current total \cost.
A. ₦1,440
B. ₦1,680
C. ₦1,920
D. ₦2,160
Question 13
A consumer has a utility function U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (x,y) = (100,0)
B. (x,y) = (80,20)
C. (x,y) = (60,40)
D. (x,y) = (40,60)
Question 14
A firm's demand for labor is given by L = 100 - 2P_L, where P_L is the wage rate. If the wage rate is $20, how many workers will the firm hire?
A. 40
B. 50
C. 60
D. 70
Question 15
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is the value of exports, M is the value of imports, F is the value of foreign investment, and I is the value of domestic investment. If the country's balance of payments is in surplus by ₦100 billion, and the value of exports is ₦500 billion, the value of imports is ₦300 billion, the value of foreign investment is ₦200 billion, and the value of domestic investment is ₦150 billion, what is the value of X?
A. ₦550 billion
B. ₦600 billion
C. ₦650 billion
D. ₦700 billion

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