POST UTME LEAD CITY UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The formula for calculating the Gross Domestic Product (GDP) is
A. \[ \text{GDP} = \text{C} + \text{I} + \text{G} + \text{X} \]
B. \[ \text{GDP} = \text{C} + \text{I} + \text{G} + \( \text{X} - \text{M} \) \]
C. \[ \text{GDP} = \text{C} + \text{I} + \text{G} + \text{M} \]
D. \[ \text{GDP} = \text{C} + \text{I} + \text{G} - \text{X} \]
Question 2
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1. If the firm's \cost function is C(x) = x^2 + 2x + 1, what is the profit function?
A. 3x^2 + 3x
B. x^2 + 3x
C. 2x^2 + 3x
D. x^2 + x
Question 3
A government imposes a tax of ₦5 per unit on a firm's output. The firm's revenue function is R(x) = 2x^2 + 5x + 1, and its \cost function is C(x) = 3x^2 + 2x + 5. If the firm produces 10 units, find the new total \cost.
A. ₦125
B. ₦130
C. ₦135
D. ₦140
Question 4
A country's GDP is $100 billion, and its GNP is $120 billion. What is the net factor income from abroad?
A. \( \text{Net factor income from abroad} = \text{GNP} - \text{GDP} = 120 - 100 = 20 \)
B. \( \text{Net factor income from abroad} = \text{GDP} - \text{GNP} = 100 - 120 = -20 \)
C. \( \text{Net factor income from abroad} = \text{GDP} + \text{GNP} = 100 + 120 = 220 \)
D. \( \text{Net factor income from abroad} = \text{GNP} + \text{GDP} = 120 + 100 = 220 \)
Question 5
A monopolist faces a downward-sloping demand curve because
A. The monopolist is a price-taker in the market.
B. The monopolist is a price-maker in the market.
C. The monopolist faces a perfectly elastic demand curve.
D. The monopolist faces a downward-sloping demand curve.
Question 6
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's \cost of labor is ₦100 per unit and the \cost of capital is ₦200 per unit, what is the firm's total \cost of production?
A. ₦300L + ₦600K
B. ₦200L + ₦400K
C. ₦400L + ₦800K
D. ₦500L + ₦1000K
Question 7
The formula for calculating Gross Domestic Product (GDP) is
A. C + I + G + \( X - M \)
B. C + I + G + X + M
C. C + I + G + \( X - M \) + T
D. C + I + G + X + M + T
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) function is MR = 50 - 2Q. If the firm produces 50 units, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. -1
Question 9
A government imposes a tax of ₦5 per unit on a firm's output. The firm's revenue function is R(x) = 2x^2 + 5x + 1, and its \cost function is C(x) = 3x^2 + 2x + 5. Find the new break-even point.
A. \( x = \frac{-5 pm \sqrt{5^2 - 4\( 2 \ \)(1)}}{2(2)} )
B. \( x = \frac{-5 pm \sqrt{5^2 - 4\( 2 \ \)(5)}}{2(2)} )
C. \( x = \frac{-5 pm \sqrt{5^2 - 4\( 3 \ \)(1)}}{2(3)} )
D. \( x = \frac{-5 pm \sqrt{5^2 - 4\( 3 \ \)(5)}}{2(3)} )
Question 10
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's indifference curve is given by u(x, y) = 2x + y, what is the consumer's optimal bundle?
A. (3, 6)
B. (4, 4)
C. (6, 2)
D. (8, 0)
Question 11
A country's balance of payments is given by the following table:\n\n| Item | Value |\n| --- | --- |\n| Exports | $100 | \n| Imports | $120 | \n| Net factor income from abroad | $20 |\n\nWhat is the balance of payments deficit?
A. \( \text{Balance of payments deficit} = \text{Imports} - \text{Exports} - \text{Net factor income from abroad} = 120 - 100 - 20 = 0 \)
B. \( \text{Balance of payments deficit} = \text{Imports} - \text{Exports} + \text{Net factor income from abroad} = 120 - 100 + 20 = 40 \)
C. \( \text{Balance of payments deficit} = \text{Exports} - \text{Imports} - \text{Net factor income from abroad} = 100 - 120 - 20 = -40 \)
D. \( \text{Balance of payments deficit} = \text{Exports} - \text{Imports} + \text{Net factor income from abroad} = 100 - 120 + 20 = -0 \)
Question 12
A firm's demand function is given by Q = 100 - 2P. If the price is $20, what is the quantity demanded?
A. \( Q = 100 - 2\( 20 \ \) = 100 - 40 = 60 )
B. \( Q = 100 - 2\( 20 \ \) = 100 - 40 = 60 )
C. \( Q = 100 - 2\( 20 \ \) = 100 - 40 = 60 )
D. \( Q = 100 - 2\( 20 \ \) = 100 - 40 = 60 )
Question 13
A monopolist faces a demand curve given by \( Q = 100 - 2p \) and a \cost function given by \( C = 50 + 10Q \). What is the monopolist's profit-maximizing price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 14
The law of diminishing marginal returns states that
A. As the quantity of a variable input increases, the marginal product of that input will eventually decrease.
B. As the quantity of a variable input increases, the marginal product of that input will eventually increase.
C. As the quantity of a variable input increases, the marginal product of that input will remain cons\tant.
D. As the quantity of a variable input increases, the marginal product of that input will decrease and then increase.
Question 15
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm increases labor from 4 units to 9 units, and capital remains cons\tant at 16 units, what is the percentage change in output?
A. 25%
B. 50%
C. 75%
D. 100%

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