POST UTME OAU 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by the equation R(P) = 100P - 2P^2, where P is the price. If the firm wants to maximize its revenue, what is the price at which it should sell its product?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost (MC) is 10. If the firm's price elasticity of demand is 2, what is the profit-maximizing price?
A. 20
B. 30
C. 40
D. 50
Question 3
A firm's production function is given by \( Q = 2L^2 + 3K^2 \), where ( L ) is labor and ( K ) is capital. If the firm's budget constraint is given by \( 2L + 3K = 100 \), what is the firm's optimal level of capital?
A. \( K^* = 20 \)
B. \( K^* = 30 \)
C. \( K^* = 40 \)
D. \( K^* = 50 \)
Question 4
A government is considering two economic development strategies: a strategy that focuses on increa\sing the country's human capital and a strategy that focuses on increa\sing the country's physical capital. If the country's current human capital is 50% and physical capital is 30%, which strategy is more likely to lead to economic growth?
A. Increa\sing human capital
B. Increa\sing physical capital
C. Both strategies are equally likely to lead to economic growth
D. Neither strategy is likely to lead to economic growth
Question 5
A firm's revenue function is given by R(x) = 2x^2 + 10x. If the firm's fixed \cost is ₦500, determine the profit-maximizing level of output.
A. x = 5
B. x = 10
C. x = 15
D. x = 20
Question 6
A country's trade balance is given by the equation TB = X - M, where X is exports and M is imports. If the country's exports are ₦100 billion and its imports are ₦120 billion, what is the trade balance?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 7
A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. What is the country's net factor income from abroad?
A. ₦100 billion
B. ₦50 billion
C. ₦200 billion
D. ₦300 billion
Question 8
The demand for a good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price increases from ₦10 to ₦15, what is the percentage change in quantity demanded?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
A country's inflation rate is given by the equation IR = \( P - P0 \)/P0, where P is the current price level and P0 is the base price level. If the current price level is ₦100 and the base price level is ₦90, what is the inflation rate?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the price elasticity of demand (PED) is 2, what is the firm's optimal output level?
A. \( Q^* = \frac{MR}{PED} \)
B. \( Q^* = \frac{MC}{PED} \)
C. \( Q^* = \frac{MR}{MC} \)
D. \( Q^* = PED \times MC \)
Question 11
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal \cost (MC) is 10. If the firm's price elasticity of demand is 2, what is the profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 12
A country's GDP is 100 billion naira. The government imposes a 10% tax on all goods and services. If the tax revenue is 5 billion naira, what is the country's GNP?
A. 95
B. 100
C. 105
D. 110
Question 13
A country is experiencing a trade deficit due to a decrease in exports and an increase in imports. The country's balance of payments is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is $100 and the value of imports is $120, find the balance of payments.
A. -20
B. 20
C. 40
D. 60
Question 14
A country's GDP is ₦1.5 trillion. If the country's population is 200 million, determine the per capita income.
A. ₦7,500
B. ₦7,500
C. ₦7,500
D. ₦7,500
Question 15
A firm is producing a good with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm increases capital from 400 to 441 units, and labor remains cons\tant at 100 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%

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