POST UTME LEAD CITY UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is steeper than another consumer's indifference curve. What can be inferred about the two consumers?
A. The first consumer is more risk-averse than the second consumer.
B. The first consumer has a higher marginal utility of income than the second consumer.
C. The first consumer has a lower marginal utility of income than the second consumer.
D. The first consumer is more risk-loving than the second consumer.
Question 2
The agricultural sector is a significant contributor to a country's GDP. If a country's agricultural sector contributes 20% to its GDP, and its GDP is ₦10 trillion, what is the value of the agricultural sector?
A. ₦2 trillion
B. ₦2.5 trillion
C. ₦3 trillion
D. ₦3.5 trillion
Question 3
A government imposes a tax on a firm's output. What is the effect of this tax on the firm's supply curve?
A. The supply curve shifts to the left.
B. The supply curve shifts to the right.
C. The supply curve becomes steeper.
D. The supply curve becomes flatter.
Question 4
The money multiplier is the ratio of the change in the money supply to a change in the reserve requirement. If the reserve requirement is reduced from 20% to 15%, and the money supply increases by ₦100 billion, what is the money multiplier?
A. 5
B. 6
C. 7
D. 8
Question 5
In a perfectly competitive market, a firm's short-run supply curve is a horizontal line at the minimum point of its average total \cost curve. What is the implication of this for the firm's profit-maximizing output level?
A. The firm will produce at the minimum point of its average total \cost curve.
B. The firm will produce at the level of output where price equals marginal \cost.
C. The firm will produce at the level of output where price equals average total \cost.
D. The firm will produce at the level of output where price equals average variable \cost.
Question 6
A firm's \cost function is given by C = 10L + 20K. If the firm's current input levels are L = 2 and K = 3, what is the total \cost of production at these input levels?
A. 50
B. 60
C. 70
D. 80
Question 7
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦20, find the quantity demanded.
A. 60
B. 80
C. 100
D. 120
Question 8
A central bank uses the money multiplier to determine the money supply in an economy. If the money multiplier is 4 and the reserve requirement is 10%, what is the money supply if the central bank injects ₦100 billion into the economy?
A. ₦400 billion
B. ₦500 billion
C. ₦600 billion
D. ₦800 billion
Question 9
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the optimal bundle of x and y.
A. x = 40, y = 20
B. x = 20, y = 40
C. x = 30, y = 30
D. x = 50, y = 10
Question 10
A consumer has a utility function U = x^2 + 2y^2, where x and y are the quantities of two goods consumed. If the prices of the goods are $2 and $4 respectively, and the consumer has a budget of $20, what is the optimal bundle of goods to consume?
A. (x, y) = (4, 2)
B. (x, y) = (3, 3)
C. (x, y) = (2, 4)
D. (x, y) = (1, 5)
Question 11
A firm's demand function is given by Q = 100 - 2P. If the price elasticity of demand is -2, what is the price at which the firm should sell its product?
A. $20
B. $30
C. $40
D. $50
Question 12
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $20 per unit of labor, what is the optimal level of labor to hire?
A. 10 units of labor
B. 20 units of labor
C. 30 units of labor
D. 40 units of labor
Question 13
A country's GDP is $100 billion, and its GNP is $120 billion. What is the net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 14
A country has a production function of Q = 100K^0.5L^0.5, where Q is the output, K is the capital and L is the labor. If the capital increases by 20% and labor remains cons\tant, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 15
A consumer's budget constraint is given by P_1Q_1 + P_2Q_2 = I. What is the consumer's indifference curve?
A. U = U\( Q_1, Q_2 \)
B. U = U\( P_1, P_2 \)
C. U = U\( I, P_1 \)
D. U = U\( I, P_2 \)

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