POST UTME MADONNA UNIVERSITY 2024 Economics | Objective

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Question 1
A firm's production function is given by Q = 2L^0.5 * K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 32
Correct B. 64
C. 128
D. 256

Correct Answer: B

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Question 2
A country's budget constraint is given by B = T + I, where B is the budget, T is the tax revenue, and I is the interest payment. If the country's tax revenue is ₦100 billion and the interest payment is ₦50 billion, what is the country's budget?
Correct A. ₦150 billion
B. ₦200 billion
C. ₦250 billion
D. ₦300 billion

Correct Answer: A

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Question 3
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
Correct C. 100
D. 110

Correct Answer: C

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Question 4
A country's balance of payments is given by BOP = X - M, where BOP is the balance of payments, X is the export revenue, and M is the import exp\enditure. If the country's export revenue is ₦200 billion and the import exp\enditure is ₦150 billion, what is the country's balance of payments?
A. ₦50 billion
Correct B. ₦100 billion
C. ₦150 billion
D. ₦200 billion

Correct Answer: B

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Question 5
A firm's production function is given by Q = 2L^0.5 * K^0.5. If the firm's current labor and capital inputs are L = 25 and K = 16, respectively, what is the firm's current output?
A. 64
Correct B. 128
C. 256
D. 512

Correct Answer: B

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Question 6
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the monopolist produces 20 units, what is the profit?
A. ₦2000
B. ₦2500
Correct C. ₦3000
D. ₦3500

Correct Answer: C

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Question 7
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
Correct C. 1.6
D. 2.0

Correct Answer: C

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Question 8
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
Correct C. ₦300
D. ₦400

Correct Answer: C

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Question 9
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 elasticity of demand?
A. 0.8
B. 1.2
Correct C. 1.6
D. 2.0

Correct Answer: C

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Question 10
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
Correct C. ₦400
D. ₦500

Correct Answer: C

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Question 11
A perfectly competitive market has the following characteristics: (a) A \single buyer and seller, (b) A \single product, (c) Free entry and exit, (d) A fixed price. Which of the following is NOT a characteristic of a perfectly competitive market?
A. A \single buyer and seller
B. A \single product
C. Free entry and exit
Correct D. A fixed price

Correct Answer: D

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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
Correct D. Government account

Correct Answer: D

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Question 13
The National Income Accounting (NIA) system is used to measure the total income earned by a country's residents. Which of the following is NOT a component of NIA?
A. Gross Domestic Product (GDP)
B. Gross National Product (GNP)
C. Net Domestic Product (NDP)
Correct D. Net National Product (NNP)

Correct Answer: D

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Question 14
A government's budget is a statement of its planned revenues and exp\enditures over a specific period. Which of the following is NOT a type of budget?
A. Recurrent budget
B. Capital budget
C. Development budget
Correct D. Emergency budget

Correct Answer: D

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Question 15
The money supply in an economy is influenced by the following factors: (a) Central bank's monetary policy, (b) Commercial banks' l\ending and borrowing activities, (c) Government's fiscal policy, (d) Foreign exchange rates. Which of the following is NOT a factor that influences the money supply?
A. Central bank's monetary policy
B. Commercial banks' l\ending and borrowing activities
C. Government's fiscal policy
Correct D. Foreign exchange rates

Correct Answer: D

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Question 16
A firm's demand for a raw material is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
Correct A. 20%
B. 30%
C. 40%
D. 50%

Correct Answer: A

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Question 17
A central bank uses the money multiplier to determine the money supply in an economy. If the reserve requirement is 20% and the money multiplier is 10, what is the money supply if the central bank injects ₦100 million into the economy?
A. ₦1,000,000,000
Correct B. ₦1,500,000,000
C. ₦2,000,000,000
D. ₦2,500,000,000

Correct Answer: B

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Question 18
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
Correct C. ₦2,200
D. ₦2,400

Correct Answer: C

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Question 19
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. If the original equilibrium price is ₦100 and the new equilibrium price is ₦120, what is the tax revenue?
A. ₦2,000
B. ₦4,000
Correct C. ₦6,000
D. ₦8,000

Correct Answer: C

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Question 20
A firm's marginal revenue is given by the equation MR = 100 - 4Q, where Q is the quantity sold. If the firm sells 15 units, what is the marginal revenue?
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

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Question 21
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm's revenue function is R(x) = 20x - x^2, find the profit-maximizing level of output.
A. x = 5
Correct B. x = 10
C. x = 15
D. x = 20

Correct Answer: B

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Question 22
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 10x + 5y = 50, find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
Correct B. x = 3, y = 5
C. x = 4, y = 6
D. x = 5, y = 7

Correct Answer: B

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Question 23
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
Correct B. x = 10
C. x = 15
D. x = 20

Correct Answer: B

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Question 24
A monopolist's demand function is given by P(x) = 100 - 2x. If the monopolist's marginal \cost function is MC(x) = 10, find the monopolist's profit-maximizing level of output.
A. x = 20
Correct B. x = 30
C. x = 40
D. x = 50

Correct Answer: B

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Question 25
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
Correct B. P = 40, Q = 20
C. P = 50, Q = 30
D. P = 60, Q = 40

Correct Answer: B

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