POST UTME OAU 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a utility function given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of goods x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. x = 50, y = 100
B. x = 100, y = 50
C. x = 150, y = 25
D. x = 200, y = 0
Question 2
A firm's revenue function is given by ( R(p) = 2p^2 + 10p + 5 ). If the firm sells its product at a price of ₦10, what is the total revenue?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 3
A firm is producing a product with a production function Q = 2L^0.5K^0.5. If the firm's labor (L) is 100 units and its capital (K) is 400 units, what is the firm's marginal product of labor (MPL)?
A. 0.5
B. 1
C. 2
D. 4
Question 4
A consumer has an income of ₦1000 and faces the following budget constraint: 2x + 3y = 1000. If the price of good x is ₦5 and the price of good y is ₦10, what is the consumer's optimal bundle of goods?
A. x = 50, y = 100
B. x = 100, y = 50
C. x = 150, y = 25
D. x = 200, y = 0
Question 5
A consumer has a budget of ₦1000 and faces the following indifference curves: IC1 and IC2. If the price of good X is ₦200 and the price of good Y is ₦300, what is the consumer's optimal bundle?
A. (2X, 1Y)
B. (1X, 2Y)
C. (3X, 0Y)
D. (0X, 3Y)
Question 6
Agricultural development in Nigeria has been hindered by
A. lack of access to credit
B. poor infrastructure
C. inadequate extension services
D. all of the above
Question 7
The government of Nigeria has introduced a new policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the availability of fertilizers. However, the policy has been criticized for being too expensive and not addres\sing the root causes of the problem. Analyze the policy u\sing the concepts of opportunity \cost and Pareto optimality.
A. The policy is a good example of Pareto optimality because it benefits the majority of the population.
B. The policy is a bad example of Pareto optimality because it benefits only a few farmers.
C. The policy is a good example of opportunity \cost because it involves giving up other impor\tant activities to produce more rice.
D. The policy is a bad example of opportunity \cost because it does not involve giving up other impor\tant activities.
Question 8
The concept of comparative advantage explains why countries should specialize in producing goods in which they have a
A. absolute advantage
B. comparative advantage
C. opportunity \cost
D. marginal benefit
Question 9
A firm faces a demand curve given by P = 100 - 2Q. If the firm's marginal \cost is MC = 20 + 2Q, what is the firm's optimal quantity of output?
A. 20
B. 30
C. 40
D. 50
Question 10
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, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
A consumer's demand function for a good is given by \( Q = 2P - 10 \). If the price of the good is ₦5, how many units of the good will the consumer purchase?
A. 0
B. 5
C. 10
D. 15
Question 12
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. If the demand curve is inelastic, the tax will result in a
A. increase in the price of the good
B. decrease in the price of the good
C. increase in the quantity supplied
D. decrease in the quantity supplied
Question 13
The Marshall-Lerner condition states that if the sum of the elasticities of demand for imports and exports is greater than 1, then a devaluation of the currency will lead to a
A. increase in the trade balance
B. decrease in the trade balance
C. increase in the current account deficit
D. decrease in the current account deficit
Question 14
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production functions are given by Q_A = 10L^0.5K^0.5 and Q_B = 5L^0.2K^0.8. If the firm has 100 units of labor and 50 units of capital, what is the total output of the firm?
A. 1000
B. 1200
C. 1500
D. 2000
Question 15
A firm is producing a product with a total revenue (TR) of ₦1000 and a total \cost (TC) of ₦800. If the firm's profit-maximizing output is 100 units, what is the firm's average \cost (AC) per unit?
A. ₦8
B. ₦10
C. ₦12
D. ₦15

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