POST UTME NILE UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good u\sing a production function with the following characteristics: Q = 2L^0.5K^0.5. If the firm increases the quantity of labor from 100 to 120, and keeps the quantity of capital cons\tant at 100, what is the new marginal product of labor?
A. 10
B. 15
C. 20
D. 25
Question 2
The supply of a good is given by the equation QS = 2P + 10, where QS is the quantity supplied and P is the price. If the price elasticity of supply is 0.5, find the percentage change in quantity supplied when the price increases by 10%.
A. 5%
B. 10%
C. 15%
D. 20%
Question 3
A country's national income is calculated as the sum of all factor incomes earned within its borders. However, this measure does not account for the value of unpaid household work, such as childcare and household chores. Which of the following is a limitation of national income as a measure of a nation's economic activity?
A. It does not account for the value of imports.
B. It does not account for the value of exports.
C. It does not account for the value of unpaid household work.
D. It does not account for the value of government sp\ending.
Question 4
A government imposes a tax of ₦10 per unit on a product. If the price of the product is ₦50 per unit, what is the tax revenue collected by the government?
A. ₦100
B. ₦500
C. ₦1000
D. ₦5000
Question 5
A government imposes a tax of ₦10 on a commodity. The demand curve for the commodity is given by Qd = 100 - 2P and the supply curve is given by Qs = 2P - 10. Find the new equilibrium price and quantity.
A. Q = 40, P = ₦60
B. Q = 30, P = ₦80
C. Q = 20, P = ₦100
D. Q = 10, P = ₦120
Question 6
A central bank increases the money supply in an economy by ₦100 million. The money demand function is given by M = 50 + 0.5Y and the money supply function is given by M = 100 + 0.2Y. Find the new equilibrium value of Y.
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 7
A monopolistically competitive firm faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2Q. Find the firm's equilibrium output and price.
A. Q = 40, P = ₦60
B. Q = 30, P = ₦80
C. Q = 20, P = ₦100
D. Q = 10, P = ₦120
Question 8
A central bank uses the following monetary policy tools to control inflation: open market operations, reserve requirements, and discount rate. Which of the following is NOT a direct effect of an increase in the discount rate?
A. Reduced borrowing \costs for commercial banks.
B. Increased reserve requirements for commercial banks.
C. Increased interest rates for consumers.
D. Increased money supply in the economy.
Question 9
A farmer produces 100 units of wheat and 50 units of maize. If the price of wheat is ₦5 per unit and the price of maize is ₦3 per unit, what is the total value of the farmer's output?
A. ₦500
B. ₦550
C. ₦600
D. ₦650
Question 10
A country's government is considering impo\sing a tax on imports to reduce the trade deficit. Explain the effects of the tax on the trade deficit and the overall economy.
A. The tax will reduce the trade deficit by reducing imports, but will also reduce economic growth by increa\sing the \cost of imports.
B. The tax will increase the trade deficit by increa\sing imports, and will also reduce economic growth by increa\sing the \cost of imports.
C. The tax will have no effect on the trade deficit, but will reduce economic growth by increa\sing the \cost of imports.
D. The tax will reduce the trade deficit by reducing imports, and will also increase economic growth by reducing the \cost of imports.
Question 11
Determine the equilibrium price and quantity of a commodity in a market where the demand function is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10. The market price is initially at ₦50.
A. ₦75, 50 units
B. ₦80, 60 units
C. ₦90, 70 units
D. ₦100, 80 units
Question 12
A firm's production function is given by Q = 2L^0.5H^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200H = 1000, what is the optimal level of labor and capital to maximize profits?
A. L = 10, H = 5
B. L = 5, H = 10
C. L = 20, H = 2
D. L = 15, H = 3
Question 13
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function C(Q) = 2Q^2. If the firm produces 20 units, what is the profit-maximizing price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 14
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 15
The concept of returns to scale in production theory is closely related to the law of diminishing marginal returns. Explain how the law of diminishing marginal returns leads to the concept of returns to scale.
A. The law of diminishing marginal returns leads to the concept of returns to scale because as the quantity of a variable input increases, the marginal product of that input decreases.
B. The law of diminishing marginal returns leads to the concept of returns to scale because as the quantity of a variable input increases, the marginal product of that input increases.
C. The law of diminishing marginal returns is unrelated to the concept of returns to scale.
D. The law of diminishing marginal returns leads to the concept of returns to scale because as the quantity of a variable input increases, the marginal product of that input remains cons\tant.

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