POST UTME OSUSTECH 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has the following production function: \( Q = 10L^{\frac{1}{2}}K^{\frac{1}{2}} \). The prices of labor and capital are \( P_L = 10 \) and \( P_K = 20 \), respectively. Find the firm's \cost function.
A. \( C = 10L^{\frac{1}{2}}K^{\frac{1}{2}} + 20L + 40K \)
B. \( C = 10L^{\frac{1}{2}}K^{\frac{1}{2}} + 20L + 80K \)
C. \( C = 10L^{\frac{1}{2}}K^{\frac{1}{2}} + 40L + 80K \)
D. \( C = 10L^{\frac{1}{2}}K^{\frac{1}{2}} + 80L + 160K \)
Question 2
A consumer has a utility function U(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the prices of the goods are $2 and $3, respectively, and the consumer has a budget of $10, find the optimal quantities of the goods.
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 4, y = 0
D. x = 0, y = 3
Question 3
A firm is considering a new investment project with a \cost of ₦100 million and a expected return of ₦120 million. The firm's \cost of capital is 10%. What is the net present value (NPV) of the project?
A. ₦20 million
B. ₦30 million
C. ₦40 million
D. ₦50 million
Question 4
A firm's \cost function is given by C(q) = 3q^2 + 20q + 100. If the firm's revenue function is R(q) = 30q, what is the profit-maximizing quantity of output?
A. 5 units
B. 10 units
C. 15 units
D. 20 units
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm uses 4 units of labor and 9 units of capital, what is the output?
A. 8
B. 10
C. 12
D. 14
Question 6
Consider a consumer with a utility function U(x,y) = 2x + 3y - x^2 - y^2. If the consumer's budget constraint is 2x + 3y = 12, find the optimal values of x and y u\sing Lagrange multipliers.
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 1, y = 3
D. x = 4, y = 0
Question 7
A consumer has a budget of ₦100 and faces a price of ₦20 for a good. The consumer's indifference curves are given by U = 2x + y, where x is the quantity of the good consumed and y is the quantity of a substitute good. If the consumer's initial consumption bundle is (x, y) = (2, 4), what is the new consumption bundle after the price increase?
A. (3, 3)
B. (4, 2)
C. (5, 1)
D. (6, 0)
Question 8
Consider a country with a mixed economy, where the government plays a significant role in the production and distribution of goods and services. Analyze the impact of government intervention on the efficiency of resource allocation in the economy.
A. Government intervention leads to a more efficient allocation of resources, as it allows for the correction of market failures.
B. Government intervention leads to a less efficient allocation of resources, as it distorts market signals and creates inefficiencies.
C. Government intervention has no impact on the efficiency of resource allocation, as it is determined by market forces.
D. Government intervention leads to a more efficient allocation of resources, but only in the short run.
Question 9
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue function is MR = 200 - 2Q, what is the price elasticity of demand?
A. 0.5
B. 1.0
C. 2.0
D. 3.0
Question 10
A government wants to reduce the budget deficit by increa\sing taxes. If the tax rate is increased from 20% to 25%, and the tax base remains cons\tant, what is the percentage change in tax revenue?
A. -10%
B. -5%
C. 0%
D. 5%
Question 11
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, find the percentage change in quantity demanded when the price increases by 10%.
A. -20%
B. -10%
C. 0%
D. 10%
Question 12
A consumer's utility function is given by U = 2X + 3Y. If the consumer has a budget of ₦100 and the prices of X and Y are ₦20 and ₦30 respectively, what is the consumer's optimal bundle?
A. X = 2, Y = 2
B. X = 3, Y = 1
C. X = 4, Y = 0
D. X = 0, Y = 3
Question 13
A consumer has the following utility function: \( U = 2x + 3y \). The prices of x and y are \( P_x = 2 \) and \( P_y = 3 \), respectively. Find the consumer's budget constraint.
A. \( 2x + 3y = 6 \)
B. \( 2x + 3y = 12 \)
C. \( 2x + 3y = 18 \)
D. \( 2x + 3y = 24 \)
Question 14
A firm's revenue function is given by R = 100P - 2P^2. If the price is ₦50, what is the revenue?
A. ₦1500
B. ₦2000
C. ₦2500
D. ₦3000
Question 15
A government is considering a policy to reduce the budget deficit. The government's budget constraint is given by B = T + I + G, where B is the budget deficit, T is tax revenue, I is interest payments, and G is government sp\ending. If the government wants to reduce the budget deficit by ₦10 billion, and tax revenue increases by ₦5 billion, what is the new level of government sp\ending?
A. ₦20 billion
B. ₦25 billion
C. ₦30 billion
D. ₦35 billion

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