POST UTME MADONNA UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist is producing at a point on its demand curve where the price elasticity of demand is one. What is the implication of this for the monopolist's revenue?
A. The monopolist's revenue is maximized.
B. The monopolist's revenue is minimized.
C. The monopolist's revenue is unchanged.
D. The monopolist's revenue is increa\sing.
Question 2
A firm is producing at a point on its production function where the marginal product of labor is zero. What is the implication of this for the firm's production?
A. The firm is producing at its maximum level of output.
B. The firm is producing at its minimum level of output.
C. The firm is producing at a point where the law of diminishing returns is operating.
D. The firm is producing at a point where the law of increa\sing returns is operating.
Question 3
The Nigerian government has implemented a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers by 20%. What is the likely effect of this policy on the agricultural sector?
A. The policy will lead to an increase in agricultural production and a decrease in the price of fertilizers.
B. The policy will lead to a decrease in agricultural production and an increase in the price of fertilizers.
C. The policy will have no effect on agricultural production and the price of fertilizers.
D. The policy will lead to an increase in agricultural production and an increase in the price of fertilizers.
Question 4
The demand function for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply function is given by Qs = 2P - 100, what is the equilibrium price and quantity?
A. P = ₦50, Q = 150 units
B. P = ₦75, Q = 100 units
C. P = ₦100, Q = 50 units
D. P = ₦150, Q = 25 units
Question 5
A firm is producing at a point on its production function where the marginal product of capital is zero. What is the implication of this for the firm's production?
A. The firm is producing at its maximum level of output.
B. The firm is producing at its minimum level of output.
C. The firm is producing at a point where the law of diminishing returns is operating.
D. The firm is producing at a point where the law of increa\sing returns is operating.
Question 6
A perfectly competitive market is characterized by a large number of firms producing a homogeneous product. What is the equilibrium price and quantity in such a market?
A. The equilibrium price is $10 and the equilibrium quantity is 100 units.
B. The equilibrium price is $20 and the equilibrium quantity is 200 units.
C. The equilibrium price is $30 and the equilibrium quantity is 300 units.
D. The equilibrium price is $40 and the equilibrium quantity is 400 units.
Question 7
A monopolistically competitive firm is producing a good with a demand curve that is downward sloping. The firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E. What is the likely effect of an increase in the price of the good on the firm's profit-maximizing output?
A. The firm will increase its profit-maximizing output.
B. The firm will decrease its profit-maximizing output.
C. The firm will not change its profit-maximizing output.
D. The firm will increase its profit-maximizing output, but only temporarily.
Question 8
A monopolist's demand function is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the monopolist's marginal revenue function is given by MR = 200 - 2Q, what is the monopolist's optimal price and quantity?
A. P = ₦50, Q = 150 units
B. P = ₦75, Q = 100 units
C. P = ₦100, Q = 50 units
D. P = ₦150, Q = 25 units
Question 9
A firm has a production function \( Q = 2L^{0.5}K^{0.5} \). If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm is currently producing 100 units of output, what is the value of the marginal product of labor?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 10
A central bank can increase the money supply by buying government securities in the open market. What is the effect of this action on the interest rate?
A. The interest rate will decrease.
B. The interest rate will increase.
C. The interest rate will remain unchanged.
D. The interest rate will fluctuate.
Question 11
The indifference curve of a consumer is downward sloping because of the law of increa\sing marginal utility. Which of the following is a consequence of this law?
A. The consumer will always choose the combination of goods that gives the highest marginal utility.
B. The consumer will always choose the combination of goods that gives the highest total utility.
C. The consumer will always choose the combination of goods that gives the highest marginal utility per unit of money spent.
D. The consumer will always choose the combination of goods that gives the highest total utility per unit of money spent.
Question 12
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦100 trillion, and the values of C, I, G, X, and M are ₦50 trillion, ₦20 trillion, ₦15 trillion, ₦30 trillion, and ₦25 trillion respectively, what is the value of the country's net exports?
A. ₦5 trillion
B. ₦10 trillion
C. ₦15 trillion
D. ₦20 trillion
Question 13
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is 100, consumption is 30, investment is 20, government sp\ending is 10, exports are 20, and imports are 10, what is the value of the marginal propensity to consume?
A. 0.3
B. 0.4
C. 0.5
D. 0.6
Question 14
A firm produces a good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L + 3K. If the firm has 10 units of labor and 8 units of capital, what is the total output?
A. 40
B. 50
C. 60
D. 70
Question 15
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

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