POST UTME OSUSTECH 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government is considering a budget that includes a tax on a particular good. The tax revenue is given by \( TR = 100,000 \), and the government wants to allocate it to different sectors. If the government wants to allocate ( 30% ) of the tax revenue to education, how much will be allocated to education?
A. ( 30,000 )
B. ( 40,000 )
C. ( 50,000 )
D. ( 60,000 )
Question 2
A firm is operating in a market with a high degree of monopoly power. If the firm increases its price, what will happen to its quantity demanded?
A. The quantity demanded will increase.
B. The quantity demanded will decrease.
C. The quantity demanded will remain the same.
D. The firm will not be able to change the quantity demanded.
Question 3
A government imposes a tax of $T = 10$ on a firm's output. If the firm's supply curve is given by Qs = 10 + 3P, find the new supply curve and the equilibrium price and quantity.
A. $Qs = 10 + 3P, P = 20, Q = 60$
B. $Qs = 10 + 3P, P = 30, Q = 40$
C. $Qs = 10 + 3P, P = 40, Q = 20$
D. $Qs = 10 + 3P, P = 50, Q = 10$
Question 4
A firm is producing a good with a production function F(L,K) = L^0.4K^0.6. If the firm has 100 units of labor and 50 units of capital, and the prices of labor and capital are ₦50 and ₦100 respectively, what is the optimal input combination?
A. L = 50, K = 50
B. L = 75, K = 25
C. L = 25, K = 75
D. L = 100, K = 0
Question 5
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the firm's current output?
A. 12
B. 15
C. 18
D. 20
Question 6
A firm is producing a good with a production function F(L,K) = L^0.4K^0.6. If the firm has 100 units of labor and 50 units of capital, and the prices of labor and capital are ₦50 and ₦100 respectively, what is the optimal input combination?
A. L = 50, K = 50
B. L = 75, K = 25
C. L = 25, K = 75
D. L = 100, K = 0
Question 7
A consumer has the following utility function: \( U = 2x + 3y \). If the prices of x and y are ₦5 and ₦10 respectively, and if the consumer's budget is ₦100, what is the optimal level of x and y?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 8
A firm is considering two different production techno\logies: one that produces 100 units of output per unit of labor and another that produces 200 units of output per unit of labor. If the price of labor is ₦100 per unit, which techno\logy should the firm choose?
A. Techno\logy 1
B. Techno\logy 2
C. Both techno\logies are equally profitable
D. Neither techno\logy is profitable
Question 9
A firm is considering investing in a new project. The project has a payback period of 5 years and a discount rate of 10%. What is the likely decision of the firm?
A. The firm will accept the project.
B. The firm will reject the project.
C. The firm will wait for more information.
D. The firm will not be able to make a decision.
Question 10
A country's GDP is ₦1,000,000,000,000. If the country's population is 200 million, what is the per capita income?
A. ₦5,000
B. ₦10,000
C. ₦20,000
D. ₦50,000
Question 11
A firm is considering two different investment projects. Project A has a \cost of \( C_A = 100,000 \) and a return of \( R_A = 120,000 \), while Project B has a \cost of \( C_B = 150,000 \) and a return of \( R_B = 180,000 \). Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally profitable
D. Neither project is profitable
Question 12
A firm has a production function given by Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the output?
A. 50
B. 60
C. 70
D. 80
Question 13
A government is considering a tax on a particular good. The supply curve for the good is given by ( S(p) = 2p ), and the demand curve is given by ( D(p) = 100 - p ). If the government imposes a tax of \( T = 5 \) on the producer, what will be the new equilibrium price?
A. \( p = 10 \)
B. \( p = 15 \)
C. \( p = 20 \)
D. \( p = 25 \)
Question 14
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer has a budget of 100 and the prices of the two goods are 2 and 3 respectively, what is the optimal bundle of goods?
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 10, y = 40
Question 15
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are ₦10 and ₦20 respectively, and the consumer has a budget of ₦100, what is the optimal consumption bundle?
A. x = 5, y = 2
B. x = 3, y = 4
C. x = 2, y = 5
D. x = 0, y = 5

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