POST UTME MADONNA UNIVERSITY 2024 Economics | Objective

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Question 1
A firm's supply function is given by P(x) = 2x + 10. If the firm's demand function is D(x) = 100 - 5x, find the equilibrium price and quantity.
A. P = 30, Q = 10
B. P = 40, Q = 20
C. P = 50, Q = 30
D. P = 60, Q = 40
Question 2
A consumer is faced with the following utility function: U = 2x + 3y, where x is the number of units of good X and y is the number of units of good Y. If the consumer's income is ₦12 and the price of good X is ₦2 per unit, what is the optimal bundle of goods that the consumer will choose?
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 3
The demand for a good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the good is given by the equation Qs = 2P - 50, where Qs is the quantity supplied. U\sing the concept of equilibrium, find the price and quantity at which the market is in equilibrium.
A. P = 25, Q = 50
B. P = 50, Q = 25
C. P = 75, Q = 10
D. P = 100, Q = 0
Question 4
A firm has a production function F(L, K) = L^0.4 K^0.6. If the firm has 10 units of labor and 20 units of capital, what is the marginal product of labor?
A. 0.8
B. 1.2
C. 1.6
D. 2.0
Question 5
A firm's total revenue is given by the equation TR = 100Q - 2Q^2, where Q is the quantity sold. If the firm sells 20 units, what is the total revenue?
A. ₦1,800
B. ₦2,000
C. ₦2,200
D. ₦2,400
Question 6
A firm is producing a good with a production function Q = 2L^2 + 3K, where L is labor and K is capital. The firm's budget constraint is 10L + 5K = 100. U\sing the concept of opportunity \cost, find the optimal level of labor and capital that maximizes the firm's output.
A. L = 5, K = 10
B. L = 10, K = 5
C. L = 15, K = 3
D. L = 20, K = 2
Question 7
A firm's \cost function is given by C(x) = 2x^2 + 5x + 1. If the firm produces 10 units of the good, what is the total \cost?
A. ₦1250
B. ₦1500
C. ₦1750
D. ₦2000
Question 8
The government of a country imposes a tax on imported goods. The tax is levied at a rate of 10% on the value of the goods. If the value of the goods is ₦1000, what is the amount of tax paid?
A. ₦100
B. ₦110
C. ₦120
D. ₦130
Question 9
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦20, what is the firm's current quantity demanded?
A. 80
B. 90
C. 100
D. 110
Question 10
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 5
Question 11
A firm's production function is given by Q(x) = 2x^2 + 5x. If the firm's \cost function is C(x) = 10x + 5, find the firm's profit-maximizing level of output.
A. x = 5
B. x = 10
C. x = 15
D. x = 20
Question 12
The balance of payments (BOP) accounts are a statistical record of all economic transactions between residents and non-residents of a country. Which of the following is NOT a component of the BOP?
A. Current account
B. Capital account
C. Financial account
D. Government account
Question 13
A government imposes a tax of ₦10 per unit on a firm that produces a good with a demand curve given by Q = 100 - 2P. If the firm produces 20 units, what is the deadweight loss?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 14
A government imposes a tax of ₦10 per unit on a firm that produces a good with a demand curve given by Q = 100 - 2P. If the firm produces 20 units, what is the tax revenue?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 15
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 5

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