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POST UTME OSUSTECH 2022 Economics | Objective

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Question 1

A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is the total revenue?

Correct A. ₦1800

B. ₦2000

C. ₦2200

D. ₦2400

Correct Answer: A

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Question 2

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 is ₦50, what is the quantity demanded?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 3

A firm's \cost function is given by the equation C(x) = 50 + 10x + 2x^2, where x is the number of units produced. If the firm produces 15 units, what is the total \cost?

A. ₦350

B. ₦400

Correct C. ₦450

D. ₦500

Correct Answer: C

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Question 4

The supply function for a product is given by the equation Qs = 20 + 2P, where Qs is the quantity supplied and P is the price. If the price is ₦30, what is the quantity supplied?

A. 10

B. 20

Correct C. 30

D. 40

Correct Answer: C

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Question 5

A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦10 trillion, and the country's consumption, investment, government sp\ending, exports, and imports are ₦3 trillion, ₦2 trillion, ₦1 trillion, ₦2 trillion, and ₦1 trillion respectively, what is the value of X - M?

A. ₦1 trillion

Correct B. ₦2 trillion

C. ₦3 trillion

D. ₦4 trillion

Correct Answer: B

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Question 6

A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm increases labor from 4 units to 9 units, and capital from 16 units to 25 units, what is the percentage change in output?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 7

A consumer's utility function is given by U = 2x + 3y, 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 ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?

A. x = 80, y = 20

Correct B. x = 60, y = 40

C. x = 40, y = 60

D. x = 20, y = 80

Correct Answer: B

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Question 8

A firm is operating in a perfectly competitive market. If the firm's marginal revenue is ₦100 and the price of the good is ₦120, what is the firm's profit-maximizing output?

A. 10 units

B. 20 units

Correct C. 30 units

D. 40 units

Correct Answer: C

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Question 9

A consumer's budget constraint is given by 2x + 3y = 12, where x and y are the quantities of two goods. If the consumer's utility function is given by U = 2x + y, what is the consumer's optimal bundle of goods?

Correct A. x = 3, y = 2

B. x = 2, y = 3

C. x = 1, y = 4

D. x = 4, y = 1

Correct Answer: A

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Question 10

A firm is operating in a monopoly market. If the firm's demand function is given by Q = 100 - 2P, and the firm's marginal \cost is ₦50, what is the firm's profit-maximizing price?

A. ₦50

Correct B. ₦60

C. ₦70

D. ₦80

Correct Answer: B

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Question 11

The demand for a commodity 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 -2, what is the percentage change in quantity demanded when the price increases by 10%?

Correct A. 20%

B. 30%

C. 40%

D. 50%

Correct Answer: A

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Question 12

A government imposes a tax of ₦10 on every unit of a commodity. If the supply curve is given by Qs = 100 + 2P, where Qs is the quantity supplied and P is the price, what is the new supply curve after the tax is imposed?

Correct A. Qs = 100 + 2P + 20

B. Qs = 100 + 2P - 20

C. Qs = 100 + 2P

D. Qs = 100 - 2P

Correct Answer: A

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Question 13

A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production function for good A is given by Q_A = 10L^0.5K^0.5, where Q_A is the quantity of good A produced, L is the amount of labor used, and K is the amount of capital used. If the firm wants to produce 100 units of good A, how much labor and capital should it use?

A. L = 100, K = 100

Correct B. L = 50, K = 50

C. L = 200, K = 200

D. L = 25, K = 25

Correct Answer: B

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Question 14

A country's money supply is given by M = 1000 + 0.5Y, where M is the money supply and Y is the national income. If the national income increases by 10%, what is the percentage change in the money supply?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 15

A firm's revenue function is given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. If the firm wants to maximize its revenue, what quantity should it produce?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 16

A country's inflation rate is given by π = \( M/P \) - 1, where π is the inflation rate, M is the money supply, and P is the price level. If the money supply increases by 10% and the price level remains cons\tant, what is the new inflation rate?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 17

A firm's \cost function is given by C = 100 + 2Q, where C is the \cost and Q is the quantity produced. If the firm produces 50 units, what is the total \cost?

A. 150

B. 200

Correct C. 250

D. 300

Correct Answer: C

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Question 18

A country's budget is given by B = 1000 + 0.5Y, where B is the budget and Y is the national income. If the national income increases by 10%, what is the new budget?

A. 1100

Correct B. 1200

C. 1300

D. 1400

Correct Answer: B

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Question 19

A firm's revenue function is given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. If the firm wants to maximize its revenue, what price should it charge?

A. 10

B. 20

C. 30

D. 40

Correct Answer: VIEW ANSWER

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Question 20

The opportunity \cost of producing one more unit of a good is measured by the

A. marginal benefit

Correct B. marginal \cost

C. average \cost

D. average revenue

Correct Answer: B

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Question 21

The production possibility frontier (PPF) is a graphical representation of the

Correct A. production possibilities of a country

B. opportunity \cost of producing one more unit of a good

C. law of diminishing marginal returns

D. theory of comparative advantage

Correct Answer: A

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Question 22

The marginal propensity to consume (MPC) is the change in consumption

Correct A. when income increases by one unit

B. when income decreases by one unit

C. when consumption increases by one unit

D. when consumption decreases by one unit

Correct Answer: A

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Question 23

The concept of scarcity implies that

A. people have unlimited wants and needs

B. people have unlimited resources

Correct C. people have limited resources to meet unlimited wants and needs

D. people have unlimited wants and needs, but limited resources

Correct Answer: C

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Question 24

The multiplier effect is a concept in economics that refers to the

Correct A. increase in aggregate demand when government increases sp\ending

B. decrease in aggregate demand when government decreases sp\ending

C. increase in aggregate supply when government increases taxes

D. decrease in aggregate supply when government decreases taxes

Correct Answer: A

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Question 25

The concept of opportunity \cost is related to the

A. law of diminishing marginal returns

Correct B. theory of comparative advantage

C. production possibility frontier

D. marginal propensity to consume

Correct Answer: B

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