POST UTME MADONNA UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is increa\sing at a rate of 5% per annum. What is the implication for the country's s\tandard of living?
A. The s\tandard of living is increa\sing.
B. The s\tandard of living is decrea\sing.
C. The s\tandard of living is cons\tant.
D. The effect on the s\tandard of living is ambiguous.
Question 2
A firm's marginal \cost is given by the equation MC = 10 + 2x, where x is the number of units produced. Find the total \cost function.
A. TC = 5x^2 + 10x
B. TC = 5x^2 + 10x + 100
C. TC = 5x^2 + 10x - 100
D. TC = 5x^2 - 10x
Question 3
A firm is producing a good with the following \cost function: C(q) = 2q^2 + 10q + 5. What is the marginal \cost of producing the 5th unit of the good?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 4
Agricultural development in Nigeria has been hindered by several factors, including lack of access to credit and limited market information. Which of the following policies would be most effective in addres\sing these issues?
A. Providing subsidies to farmers to reduce production \costs.
B. Establishing a national agricultural bank to provide credit to farmers.
C. Creating a national agricultural marketing board to provide market information to farmers.
D. Implementing a policy of price controls to stabilize agricultural prices.
Question 5
A central bank uses an open market operation to increase the money supply. What is the effect on the interest rate?
A. The interest rate will increase.
B. The interest rate will decrease.
C. The interest rate will remain cons\tant.
D. The effect on the interest rate is ambiguous.
Question 6
A firm's demand curve is given by Q = 100 - 2P and its \cost function is C = 200 + 5Q. If the firm produces 20 units, what is the profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 7
A monopolistically competitive firm faces a downward-sloping demand curve due to product differentiation. Which of the following statements best describes the relationship between the firm's price and output?
A. The firm's price and output are inversely related.
B. The firm's price and output are directly related.
C. The firm's price and output are unrelated.
D. The firm's price and output are related, but the relationship is not straightforward.
Question 8
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment, and G is the government sp\ending. If the consumption is ₦100, the investment is ₦50, and the government sp\ending is ₦20, what is the GDP?
A. ₦170
B. ₦180
C. ₦190
D. ₦200
Question 9
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12 and the price of x is 2, what is the optimal level of y?
A. 2
B. 4
C. 6
D. 8
Question 10
A consumer's budget constraint is represented by the equation: 2x + 3y = 12. If the consumer's income is ₦12, what is the maximum amount of money they can sp\end on good x?
A. ₦4
B. ₦6
C. ₦8
D. ₦10
Question 11
A firm's production function is represented by the equation: Q = 2L + 3K. If the firm's labor input is 4 units and its capital input is 2 units, what is the total output?
A. 8
B. 10
C. 12
D. 14
Question 12
A country with a perfectly competitive market structure has a demand curve that is downward sloping. What is the implication of this for the firm's revenue?
A. The firm's revenue will increase as the price of the good increases.
B. The firm's revenue will decrease as the price of the good increases.
C. The firm's revenue will remain cons\tant as the price of the good increases.
D. The firm's revenue will increase as the price of the good decreases.
Question 13
At the point of equilibrium, the price of a commodity is determined by the intersection of the supply and demand curves. Which of the following statements is true about the equilibrium price?
A. The equilibrium price is determined by the quantity demanded.
B. The equilibrium price is determined by the quantity supplied.
C. The equilibrium price is determined by the intersection of the supply and demand curves.
D. The equilibrium price is determined by the slope of the supply curve.
Question 14
In a perfectly competitive market, the supply curve is downward sloping because of the law of increa\sing opportunity \cost. What is the opportunity \cost of producing one more unit of a good?
A. The \cost of producing the next unit of the good
B. The \cost of producing the previous unit of the good
C. The \cost of producing the last unit of the good
D. The \cost of producing the first unit of the good
Question 15
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where Q_X is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 4 units of labor and 9 units of capital, what is the quantity of good X produced?
A. 8
B. 16
C. 32
D. 64

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