POST UTME NILE UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, find the price at which the quantity demanded is 60 units.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 2
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are the prices of two goods, Q1 and Q2 are the quantities consumed, and I is the consumer's income. If the consumer has an income of ₦100, the price of good 1 is ₦10, and the price of good 2 is ₦20, what is the consumer's indifference curve?
A. 45°
B. 60°
C. 90°
D. 120°
Question 3
A firm's production function is given by \( Q = 2L^{1/2}K^{1/2} \). If the firm's current input prices are \( w = 10 \) and \( r = 20 \), and the firm's current output price is \( p = 30 \), what is the firm's optimal input combination?
A. \( L = 100, K = 200 \)
B. \( L = 200, K = 100 \)
C. \( L = 50, K = 150 \)
D. \( L = 150, K = 50 \)
Question 4
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue (MR) function is given by MR = 200 - 4Q, what is the firm's optimal price?
A. 40
B. 50
C. 60
D. 70
Question 5
Consider a smallholder farmer in Nigeria who cultivates maize and soybeans. The farmer's production function for maize is given by Q = 100 + 2L + 3K, where Q is the quantity of maize produced, L is the labor input, and K is the capital input. The production function for soybeans is given by Q = 80 + 2L + 4K. If the farmer allocates 20 units of labor and 30 units of capital to maize production, and 15 units of labor and 25 units of capital to soybeans production, what is the opportunity \cost of producing one unit of maize?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A consumer's utility function is given by \( U = 2x + 3y \), where (x) and (y) are the quantities of two goods consumed. If the consumer's budget constraint is \( 2x + 3y = 100 \), and the prices of the two goods are \( p_x = 5 \) and \( p_y = 10 \), what is the consumer's optimal consumption bundle?
A. \( x = 20, y = 30 \)
B. \( x = 30, y = 20 \)
C. \( x = 25, y = 25 \)
D. \( x = 10, y = 40 \)
Question 7
A consumer's indifference curve is downward sloping because of the law of increa\sing marginal disutility. Which of the following is a correct statement about the law of increa\sing marginal disutility?
A. The law states that as the quantity of a good consumed increases, the marginal utility derived from it decreases.
B. The law states that as the quantity of a good consumed increases, the marginal utility derived from it increases.
C. The law states that as the quantity of a good consumed increases, the marginal utility derived from it remains cons\tant.
D. The law states that as the quantity of a good consumed increases, the marginal utility derived from it first increases and then decreases.
Question 8
A consumer's indifference curve is given by the equation U = 2Q1 + Q2, where U is the utility and Q1 and Q2 are the quantities of good 1 and good 2. If the consumer's income increases by 20% and the price of good 1 decreases by 10%, what is the new indifference curve equation?
A. U = 2.2Q1 + 1.1Q2
B. U = 2.2Q1 + Q2
C. U = 2Q1 + 1.1Q2
D. U = 2Q1 + Q2
Question 9
A firm produces a product u\sing two inputs, labour and capital. The production function is given by Q = 10L^0.5K^0.5, where Q is the quantity produced and L and K are the quantities of labour and capital, respectively. If the firm has 100 units of labour and 50 units of capital, find the quantity produced and the marginal product of labour.
A. Q = 20, MPL = 5
B. Q = 15, MPL = 3
C. Q = 10, MPL = 2
D. Q = 12, MPL = 4
Question 10
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. What is the marginal \cost function?
A. ( C'(q) = 2q + 5 )
B. ( C'(q) = 4q + 10 )
C. ( C'(q) = 6q + 15 )
D. ( C'(q) = 8q + 20 )
Question 11
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to increase revenue by 10%, what is the required change in price?
A. ₦5
B. ₦10
C. ₦15
D. ₦20
Question 12
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2, where C is total \cost and Q is output. If the firm's revenue function is given by R = 200 - 2Q, what is the firm's profit-maximizing output level?
A. 4
B. 6
C. 8
D. 10
Question 13
A central bank uses open market operations to increase the money supply in the economy. Which of the following is a correct statement about open market operations?
A. Open market operations involve the central bank buying government securities from commercial banks.
B. Open market operations involve the central bank selling government securities to commercial banks.
C. Open market operations involve the central bank buying government securities from the public.
D. Open market operations involve the central bank selling government securities to the public.
Question 14
A consumer's utility function is given by U = 2X + 3Y, where X and Y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2X + 3Y = 12, and the prices of the two goods are P_X = 2 and P_Y = 3, respectively, what is the consumer's optimal bundle of goods?
A. (2, 2)
B. (4, 0)
C. (0, 4)
D. (6, 0)
Question 15
Suppose a firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output level?
A. 24
B. 32
C. 48
D. 64

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: