POST UTME NILE UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C = 100 + 2Q + 5P, where C is the \cost, Q is the quantity produced, and P is the price. If the quantity produced is 50 units and the price is ₦20, what is the \cost?
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,000
Question 2
A monopolist faces a demand curve and has a cons\tant marginal \cost of production. If the monopolist's marginal revenue is equal to its marginal \cost, what is the optimal price and quantity of output?
A. The optimal price is the highest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
B. The optimal price is the lowest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
C. The optimal price is the price at which the demand curve intersects the marginal revenue curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
D. The optimal price is the highest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal revenue curve.
Question 3
A firm is operating on its long-run average \cost curve. If the firm experiences a 20% increase in output, what will be the effect on its average \cost?
A. The average \cost will decrease by 20%
B. The average \cost will increase by 20%
C. The average \cost will remain unchanged
D. The average \cost will decrease by 10%
Question 4
A firm has a production function Q = 3L^0.7K^0.3. If the price of the good is $15 and the wage rate is $6 per unit of labor, what is the optimal level of labor (L) that the firm should employ, given that the price of capital is $3 per unit?
A. 15
B. 30
C. 45
D. 60
Question 5
A country's GDP grows at a rate of 5% per annum, while its population grows at a rate of 2.5% per annum. If the current GDP is ₦1.2 trillion, what is the GDP 5 years from now?
A. ₦1.8 trillion
B. ₦2.1 trillion
C. ₦1.5 trillion
D. ₦1.0 trillion
Question 6
A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods. If the consumer's utility function is U = 2x + 3y, what is the consumer's optimal bundle?
A. x = 20, y = 10
B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25
Question 7
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
A. 1
B. 2
C. 3
D. 4
Question 8
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is 100 and the prices of the two goods are 5 and 10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1
Question 9
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are $100 billion, imports are $80 billion, foreign investment is $20 billion, and domestic investment is $30 billion, what is the balance of payments?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 10
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is $100 and the prices of x and y are $5 and $10 respectively, what is the consumer's optimal bundle?
A. (10, 10)
B. (15, 5)
C. (20, 0)
D. (0, 20)
Question 11
A central bank is considering a contractionary monetary policy to combat inflation. Which of the following tools would be most effective in achieving this goal?
A. Increa\sing the reserve requirement
B. Increa\sing the discount rate
C. Selling government securities
D. Increa\sing the money supply
Question 12
A firm operating in a perfectly competitive market has a revenue function given by R(q) = 20q. If the firm's \cost function is C(q) = 2q^2 + 10q, what is the firm's profit-maximizing output?
A. 5
B. 10
C. 15
D. 20
Question 13
A firm faces a downward-sloping demand curve and has a cons\tant marginal \cost of production. If the firm's marginal revenue is greater than its marginal \cost, what is the optimal price and quantity of output?
A. The optimal price is the highest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
B. The optimal price is the lowest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
C. The optimal price is the price at which the demand curve intersects the marginal revenue curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
D. The optimal price is the highest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal revenue curve.
Question 14
A monopolist faces a demand curve given by P = 100 - 2q. The firm's marginal \cost is MC = 10. What is the monopolist's profit-maximizing output?
A. 20
B. 30
C. 40
D. 50
Question 15
A firm operating in a perfectly competitive market has a \cost function given by C(q) = 2q^2 + 10q. If the market price is P = 20, what is the firm's profit-maximizing output?
A. 5
B. 10
C. 15
D. 20

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