POST UTME LEAD CITY UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is given by MC = 10 + 2Q. What is the profit-maximizing price and quantity for the monopolist?
A. \( P = 40, Q = 60 \)
B. \( P = 30, Q = 70 \)
C. \( P = 20, Q = 80 \)
D. \( P = 10, Q = 90 \)
Question 2
A firm's average total \cost (ATC) curve is U-shaped, with ATC initially decrea\sing and then increa\sing. What is the primary reason for this U-shaped ATC curve?
A. Increa\sing marginal product of labor
B. Decrea\sing marginal product of labor
C. Increa\sing marginal \cost
D. Decrea\sing marginal revenue
Question 3
A country's balance of payments (BOP) is in equilibrium when the current account and capital account are balanced. What is the primary factor that determines the equilibrium value of the exchange rate?
A. Supply and demand for foreign exchange
B. Interest rates and inflation rates
C. Government intervention and trade policies
D. Economic growth and development
Question 4
A firm's total revenue (TR) 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 the total revenue?
A. ₦1800
B. ₦2000
C. ₦2200
D. ₦2400
Question 5
A firm's demand function is given by Q = 100 - 2P. If the price increases from ₦50 to ₦60, what is the percentage change in quantity demanded?
A. 10%
B. 20%
C. 30%
D. 40%
Question 6
A government wants to implement a subsidy on a particular good to increase its consumption. If the demand for the good is given by Q = 100 - 2P and the supply is given by Q = 2P - 10, what is the optimal price and quantity of the good?
A. P^* = 20, Q^* = 20
B. P^* = 22.5, Q^* = 22.5
C. P^* = 25, Q^* = 25
D. P^* = 30, Q^* = 30
Question 7
The demand for a commodity is given by \( Q_d = 100 - 2P \) and the supply is given by \( Q_s = 2P - 10 \). Find the equilibrium price and quantity.
A. \( P = 20, Q = 40 \ \)
B. \( P = 30, Q = 50 \ \)
C. \( P = 40, Q = 60 \ \)
D. \( P = 50, Q = 70 \ \)
Question 8
A firm's revenue function is given by R(q) = 20q - 0.5q^2. If the firm produces 20 units of output, what is the marginal revenue?
A. Marginal Revenue = 15
B. Marginal Revenue = 20
C. Marginal Revenue = 25
D. Marginal Revenue = 30
Question 9
A firm's revenue function is given by R(q) = 3q^2 - 2q + 1. If the firm produces 10 units, what is its total revenue?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 10
The government of Nigeria plans to increase the production of rice by 20% in the next fiscal year. If the current production is 1.2 million metric tons, what will be the new production level?
A. 1.44 million metric tons
B. 1.44 million metric tons
C. 1.44 million metric tons
D. 1.44 million metric tons
Question 11
A monopolist faces a demand curve given by \( P = 100 - Q \) and a \cost function given by ( C(Q) = 20Q + 100 ). Find the profit-maximizing quantity and price.
A. \( Q = 40, P = 60 \ \)
B. \( Q = 50, P = 70 \ \)
C. \( Q = 60, P = 80 \ \)
D. \( Q = 70, P = 90 \ \)
Question 12
A country's GDP is ₦1,500 billion. The country's GNP is ₦1,600 billion. What is the country's net factor income from abroad?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 13
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 10 units of output, what is the total \cost of production?
A. 120
B. 150
C. 200
D. 250
Question 14
A firm operating under perfect competition faces a market demand curve that is a straight line. If the firm's marginal revenue (MR) curve is also a straight line and MR = 50, then the firm's price elasticity of demand (PED) is:
A. 0.5
B. 1
C. 2
D. 3
Question 15
A consumer's utility function is given by U = 2x + 3y. If the consumer's current budget is ₦1,000 and the prices of x and y are ₦5 and ₦10 respectively, then the consumer's optimal consumption bundle is:
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: