POST UTME OSUSTECH 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government imposes a tax on a firm's output. The firm's supply function is given by Q = 100 + 2P. If the tax rate is 10% and the firm's current output is Q = 120, what is the new supply function after the tax is imposed?
A. Q = 100 + 2P
B. Q = 90 + 2P
C. Q = 80 + 2P
D. Q = 70 + 2P
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 4 and K = 9, what is the marginal product of labor (MPL) when the firm is producing at the current input levels?
A. 1
B. 2
C. 3
D. 4
Question 3
A country's import demand function is given by M = 100 - 2P + 3Y. If the price of the imported good is P = 50 and the country's income is Y = 200, what is the quantity of imports demanded?
A. 50
B. 75
C. 100
D. 125
Question 4
A country's balance of payments is in equilibrium when the current account is equal to the capital account. U\sing the concept of the balance of payments, explain the likely effect of an increase in foreign investment on the country's balance of payments.
A. The current account will increase, and the capital account will decrease.
B. The current account will decrease, and the capital account will increase.
C. The current account will remain the same, and the capital account will increase.
D. The current account will increase, and the capital account will remain the same.
Question 5
A consumer's utility function is given by U = 2x^0.5y^0.5, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦10 and ₦20 respectively, what is the consumer's optimal bundle of goods?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 25
Question 6
A government imposes a tax on a firm's output. The firm's supply function is given by Q = 100 + 2P. If the tax rate is 10% and the firm's current output is Q = 120, what is the new supply function after the tax is imposed?
A. Q = 100 + 2P
B. Q = 90 + 2P
C. Q = 80 + 2P
D. Q = 70 + 2P
Question 7
A firm's revenue function is given by ( R(x) = 20x - 0.5x^2 ). Find the maximum revenue u\sing the first derivative test.
A. ₦100
B. ₦120
C. ₦140
D. ₦160
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 9
A firm's production function is given by Q = 2L^2 + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's \cost function is C = 10L + 20K, what is the optimal input combination?
A. L = 5, K = 10
B. L = 10, K = 5
C. L = 15, K = 0
D. L = 0, K = 15
Question 10
A country's balance of payments is in equilibrium when the current account is equal to the capital account. If the current account is -₦100 billion and the capital account is ₦150 billion, what is the net capital outflow?
A. ₦250 billion
B. ₦200 billion
C. ₦150 billion
D. ₦100 billion
Question 11
A country's export supply function is given by X = 50 + 2P. If the price of the exported good is P = 75 and the country's income is Y = 200, what is the quantity of exports supplied?
A. 50
B. 75
C. 100
D. 125
Question 12
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 100, what is the optimal bundle of goods?
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 50, y = 0
Question 13
A consumer's utility function is given by ( U(x,y) = 10\sqrt{x} + 5\sqrt{y} ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the optimal bundle of x and y u\sing the budget constraint.
A. \( x = 80, y = 40 \)
B. \( x = 40, y = 80 \)
C. \( x = 60, y = 60 \)
D. \( x = 20, y = 20 \)
Question 14
A firm is producing a good with the following \cost and revenue functions: C(x) = 2x^2 + 10x + 5 and R(x) = 3x^2 - 2x + 1. Find the profit-maximizing level of production.
A. x = 1
B. x = 2
C. x = 3
D. x = 4
Question 15
A firm is producing a good with the following \cost and revenue functions: C(x) = 2x^2 + 10x + 5 and R(x) = 3x^2 - 2x + 1. Find the profit-maximizing level of production.
A. x = 1
B. x = 2
C. x = 3
D. x = 4

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