POST UTME OAU 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The balance of payments (BOP) of a country is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period of time. What is the main purpose of the BOP?
A. To measure the country's economic growth
B. To measure the country's trade deficit
C. To measure the country's foreign exchange reserves
D. To measure the country's economic transactions with non-residents
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 3
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5H^0.5. If the firm's current input prices are w_L = 10 and w_H = 20, and the current output price is p = 50, calculate the firm's optimal input mix u\sing the method of Lagrange multipliers.
A. L = 4, H = 16
B. L = 16, H = 4
C. L = 8, H = 8
D. L = 2, H = 32
Question 4
A firm's production function is given by \( Q = 2L^2 + 3K \), where ( L ) is labor and ( K ) is capital. If the firm's \cost function is given by \( C = 10L + 20K \), what is the value of \( \frac{partial Q}{partial L} \) when \( L = 2 \) and ( K = 3 ?
A. 4
B. 6
C. 8
D. 10
Question 5
A consumer's indifference curve is downward sloping and convex to the origin. What does this imply about the consumer's preferences?
A. The consumer prefers more of good X to good Y.
B. The consumer prefers more of good Y to good X.
C. The consumer is indifferent between good X and good Y.
D. The consumer prefers a combination of both goods X and Y.
Question 6
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 supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price, what is the equilibrium price and quantity?
A. P = 50, Q = 50
B. P = 75, Q = 25
C. P = 100, Q = 0
D. P = 0, Q = 100
Question 7
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦20, what is the quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 8
A consumer has the following utility function: U(x, y) = 2x^0.5y^0.5. If the consumer's budget is 100 and the prices of x and y are 10 and 20 respectively, find the consumer's optimal consumption bundle u\sing the method of comparative statics.
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 20, y = 2
D. x = 2, y = 20
Question 9
A country's GDP is given by \( GDP = C + I + G \), where ( C ) is consumption, ( I ) is investment, and ( G ) is government sp\ending. If the country's consumption function is given by \( C = 100 + 0.8Y \), where ( Y ) is income, and the country's investment function is given by \( I = 20 + 0.2Y \), what is the value of \( \frac{partial GDP}{partial Y} \) when ( Y = 1000 ?
A. 1.6
B. 1.8
C. 2.0
D. 2.2
Question 10
A firm's demand curve is given by \( Q = 100 - 2P \). If the firm's marginal revenue function is given by \( MR = 200 - 4P \), what is the price at which the firm will maximize profits?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 11
A monopolistically competitive firm faces a downward-sloping demand curve and a downward-sloping marginal revenue (MR) curve. If the firm's MR is $12, and the market price is $15, what is the firm's marginal \cost (MC)?
A. 3
B. 5
C. 7
D. 9
Question 12
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5H^0.5. If the firm's current input prices are w_L = 10 and w_H = 20, and the current output price is p = 50, calculate the firm's optimal input mix u\sing the method of comparative statics.
A. L = 4, H = 16
B. L = 16, H = 4
C. L = 8, H = 8
D. L = 2, H = 32
Question 13
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm wants to produce 10 units of output, how many labor units should it hire?
A. 2
B. 4
C. 6
D. 8
Question 14
The supply function of a firm is given by Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price is $20, how many units of the product will be supplied?
A. 30
B. 40
C. 50
D. 60
Question 15
The concept of scarcity in economics implies that the wants of individuals are unlimited, while the resources available to satisfy these wants are limited. Which of the following is a consequence of this scarcity?
A. Inefficient allocation of resources
B. Increased economic growth
C. Reduced poverty
D. Improved s\tandard of living

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