POST UTME OSUSTECH 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government imposes a tax of ₦10 on every unit of a good. The supply function of the good is given by \( Q = 2P - 10 \). Find the new equilibrium price and quantity after the tax is imposed.
A. \( P = 15, Q = 10 \)
B. \( P = 20, Q = 15 \)
C. \( P = 25, Q = 20 \)
D. \( P = 30, Q = 25 \)
Question 2
A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. However, this equilibrium is not sustainable in the long run. What is the main reason for this?
A. The country's imports are not matched by an equivalent increase in exports.
B. The country's exports are not matched by an equivalent increase in imports.
C. The country's trade deficit is financed by foreign investment.
D. The country's trade surplus is financed by foreign investment.
Question 3
A government is considering a tax on a particular commodity. The tax is expected to reduce the quantity demanded of the commodity by 10%. If the initial price of the commodity is ₦50 and the initial quantity demanded is 100 units, what will be the new price of the commodity after the tax is imposed?
A. ₦45
B. ₦50
C. ₦55
D. ₦60
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. The firm's current inputs are L = 16 and K = 9. What is the firm's average product (AP) and marginal product (MP)?
A. AP = 1, MP = 0.5
B. AP = 0.5, MP = 1
C. AP = 1.5, MP = 0.75
D. AP = 0.75, MP = 1.5
Question 5
A firm is a pure monopolist in a market where the demand curve is given by Qd = 100 - 2P. The firm's marginal \cost (MC) is cons\tant at ₦10. What is the firm's optimal price and quantity?
A. P = ₦40, Q = 30
B. P = ₦50, Q = 25
C. P = ₦60, Q = 20
D. P = ₦70, Q = 15
Question 6
A firm's demand curve is given by the equation \( Q = 100 - 2P \). If the firm's current price is ₦50, what is the quantity demanded?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 7
A firm's supply function is given by \( Q = 2P - 10 \). If the price of the good is ₦15, find the elasticity of supply.
A. 0.5
B. 1
C. 2
D. 3
Question 8
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 9
A firm is producing a good with a production function \( Q = 2L^2 + 3K^2 \), where ( L ) is labor and ( K ) is capital. If the price of labor is ( ₦100 ) per unit and the price of capital is ( ₦200 ) per unit, what is the optimal level of labor and capital to produce 100 units of the good?
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 15, K = 3
D. L = 20, K = 2
Question 10
A firm has a \cost function given by ( C(x) = 2x^2 + 10x + 5 ) and a revenue function given by ( R(x) = 3x^2 - 5x + 2 ). Find the break-even point.
A. \( x = 5 \)
B. \( x = 10 \)
C. \( x = 15 \)
D. \( x = 20 \)
Question 11
A firm is producing at a point on its production function where the marginal product of labor (MPL) is equal to the wage rate. However, the firm is not maximizing its profits. What is the main reason for this?
A. The firm is not producing at the optimal level of output.
B. The firm is not u\sing the optimal amount of capital.
C. The firm is not u\sing the optimal amount of labor.
D. The firm is not u\sing the optimal combination of labor and capital.
Question 12
A consumer's utility function is given by ( U(x,y) = \sqrt{x^2 + y^2} ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y u\sing the budget constraint.
A. \( x = 40, y = 20 \)
B. \( x = 60, y = 10 \)
C. \( x = 80, y = 0 \)
D. \( x = 0, y = 33.33 \)
Question 13
A consumer's budget constraint is given by 2X + 3Y = 12. The consumer's indifference curve is given by U = 2X + 3Y. What is the consumer's optimal bundle of X and Y?
A. X = 2, Y = 2
B. X = 3, Y = 1
C. X = 1, Y = 4
D. X = 4, Y = 1
Question 14
A country is experiencing a trade deficit due to a decline in its exports. What is the main reason for this?
A. The country's imports have increased.
B. The country's exports have decreased.
C. The country's trade deficit is financed by foreign investment.
D. The country's trade surplus is financed by foreign investment.
Question 15
A consumer's demand function for a good is given by \( Q = 100 - 2P \). If the price of the good is ₦20, find the consumer's surplus.
A. ₦100
B. ₦200
C. ₦300
D. ₦400

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