POST UTME NOUN 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, calculate the firm's total \cost of production when L = 4 and K = 9.
A. ₦1,440
B. ₦1,680
C. ₦1,920
D. ₦2,160
Question 2
Consider a firm with a production function Q = 3L^0.7K^0.3. If the firm's current input prices are w = 15 and r = 25, calculate the firm's marginal \cost when L = 6 and K = 12.
A. ₦15
B. ₦20
C. ₦25
D. ₦30
Question 3
A firm's total revenue (TR) is given by the equation TR = P * Q, where P is the price per unit and Q is the quantity sold. If the price per unit is ₦50 and the quantity sold is 100 units, what is the total revenue?
A. ₦5000
B. ₦50000
C. ₦500000
D. ₦5000000
Question 4
A firm's marginal \cost (MC) is given by the equation MC = 2Q + 10, where Q is the quantity produced. If the firm produces 5 units, what is the marginal \cost?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A consumer has a budget constraint of 100 and a preference for two goods, A and B. The prices of A and B are 5 and 10 respectively. If the consumer's indifference curve is \tangent to the budget line, what is the consumer's optimal consumption bundle?
A. (10, 20)
B. (20, 10)
C. (15, 15)
D. (5, 5)
Question 6
A firm produces two products, A and B. The production function for A is Q_A = 2L + 3K and for B is Q_B = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, how many units of A and B should it produce to maximize profit?
A. Q_A = 15, Q_B = 10
B. Q_A = 20, Q_B = 5
C. Q_A = 10, Q_B = 15
D. Q_A = 5, Q_B = 20
Question 7
Consider a firm operating in a perfectly competitive market with a given supply curve. If the price elasticity of demand is greater than 1, what will be the effect on the firm's revenue?
A. Increase in revenue
B. Decrease in revenue
C. No change in revenue
D. Uncertain effect on revenue
Question 8
A country's GDP is calculated as the sum of consumption, investment, government sp\ending, and net exports. If the country's GDP is ₦10 trillion and the government sp\ending is ₦1.5 trillion, what is the sum of consumption and investment?
A. ₦8.5 trillion
B. ₦9 trillion
C. ₦9.5 trillion
D. ₦10 trillion
Question 9
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are ₦5 and ₦3 respectively, and the consumer's income is ₦100, find the consumer's optimal bundle of x and y.
A. (10,20)
B. (15,15)
C. (20,10)
D. (25,5)
Question 10
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 20%, what is the required percentage increase in labor?
A. 10%
B. 15%
C. 20%
D. 25%
Question 11
The elasticity of demand for a product is 0.5. If the price of the product increases by 10%, what is the percentage change in the quantity demanded?
A. 5%
B. 10%
C. 15%
D. 20%
Question 12
The government of a country has a budget deficit of ₦100 billion. If the government increases its revenue by 15% and decreases its exp\enditure by 10%, what is the new budget deficit?
A. ₦85 billion
B. ₦90 billion
C. ₦95 billion
D. ₦100 billion
Question 13
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 of the two goods, and I is the income. If the consumer's income is ₦100, the price of good 1 is ₦10, and the price of good 2 is ₦20, what is the maximum quantity of good 1 that the consumer can buy?
A. 5 units
B. 10 units
C. 15 units
D. 20 units
Question 14
Consider a country that imports 100 units of a good from another country at a price of ₦50 per unit, and exports 50 units of another good to the same country at a price of ₦75 per unit. If the country's balance of payments is in equilibrium, what is the value of the good that the country imports?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 15
A firm's production function is Q = 2L + 3K. The firm has 10 units of labor and 5 units of capital. Find the firm's marginal product of labor and marginal product of capital.
A. Marginal Product of Labor = 2, Marginal Product of Capital = 3
B. Marginal Product of Labor = 3, Marginal Product of Capital = 2
C. Marginal Product of Labor = 4, Marginal Product of Capital = 1
D. Marginal Product of Labor = 1, Marginal Product of Capital = 4

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