POST UTME OSUSTECH 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's supply function is given by Q = 50 + 3P, what is the equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 2
A government has a budget constraint of ₦1000 and a tax rate of 20%. If the government wants to maximize its revenue, what is the optimal level of taxation?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 3
A country's GDP is ₦10 trillion, its imports are ₦2 trillion, and its exports are ₦1.5 trillion. What is its balance of trade?
A. ₦0.5 trillion surplus
B. ₦1 trillion deficit
C. ₦0.5 trillion deficit
D. ₦1 trillion surplus
Question 4
A firm faces a production function Q = 2L^0.5K^0.5. If the prices of labor and capital are w = ₦100 and r = ₦200, respectively, find the profit-maximizing values of L and K.
A. \( L = 4, K = 9 \)
B. \( L = 9, K = 4 \)
C. \( L = 16, K = 9 \)
D. \( L = 25, K = 16 \)
Question 5
A firm is considering investing in a new project that has the following cash flows: Year 1: -100, Year 2: 150, Year 3: 200. What is the net present value of the project if the discount rate is 10%?
A. -50
B. -30
C. -20
D. 10
Question 6
A firm is considering investing in a new project with a net present value (NPV) of ₦1000. If the \cost of capital is 10%, find the internal rate of return (IRR) of the project.
A. \( IRR = 10% \)
B. \( IRR = 12% \)
C. \( IRR = 15% \)
D. \( IRR = 18% \)
Question 7
A firm is considering investing in a new project with a net present value (NPV) of ₦1000. If the \cost of capital is 10%, find the internal rate of return (IRR) of the project.
A. \( IRR = 10% \)
B. \( IRR = 12% \)
C. \( IRR = 15% \)
D. \( IRR = 18% \)
Question 8
A firm's revenue function is given by ( R(x) = 2x^2 - 3x + 10 ). If the firm produces 10 units of output, find the marginal revenue.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
A monopolist faces a demand curve with the following equation: Q = 100 - 2P. If the firm's marginal \cost curve is MC = 10, what is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 10
A country's GDP is calculated as the sum of all final goods and services produced within its borders. If a foreign company produces a good within the country, but the good is not sold within the country, how will this affect the country's GDP?
A. The country's GDP will increase by the value of the good produced.
B. The country's GDP will decrease by the value of the good produced.
C. The country's GDP will remain unchanged.
D. The country's GDP will increase by the value of the good sold within the country.
Question 11
A country's balance of payments is given by the equation \( BOP = X - M \), where X is the value of exports and M is the value of imports. If the country's exports are ₦500 and imports are ₦300, find the balance of payments.
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 12
A country's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the country has 100 units of labor and 200 units of capital, what is the output?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 13
Consider a firm that produces two goods, A and B. The production function for good A is \( Q_A = 2L_A + 3K_A \) and the production function for good B is \( Q_B = 3L_B + 2K_B \). If the firm has 10 units of labor and 8 units of capital, how many units of good A and good B should the firm produce to maximize profits?
A. Good A: 20 units, Good B: 15 units
B. Good A: 15 units, Good B: 20 units
C. Good A: 10 units, Good B: 10 units
D. Good A: 5 units, Good B: 5 units
Question 14
A firm's production function is given by Q = 10L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 100 to 120 units, and capital from 100 to 121 units, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 15
A monopolist faces a demand curve given by P = 100 - 2Q, where P is price and Q is quantity. If the firm's marginal \cost (MC) is 20, what is the profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50

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