POST UTME PAN-ATLANTIC UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a perfectly competitive market with 5 firms, each producing 100 units of a homogeneous good. If the market price is ₦100 per unit, and the firms' marginal \cost is ₦80 per unit, what is the total revenue of the market?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 2
A firm is producing at a point where its marginal revenue equals its marginal \cost. What does this imply about the firm's production level?
A. The firm is producing at its profit-maximizing level.
B. The firm is producing at its minimum point.
C. The firm is producing at its maximum point.
D. The firm is producing at its break-even point.
Question 3
A firm is producing a good u\sing a production function of the form Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 9 units, and its capital input from 9 units to 16 units, what will be the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 50 - 2Q, what is the firm's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 5
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. The firm's \cost function is given by C = 2L + 3K. Find the optimal values of L and K.
A. L = 2, K = 3
B. L = 3, K = 2
C. L = 1, K = 4
D. L = 4, K = 1
Question 6
A consumer has a budget of ₦1,000 and a utility function given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods. The prices of the goods are ₦5 and ₦3, respectively. Find the optimal quantities of the goods.
A. x = 100, y = 200
B. x = 150, y = 150
C. x = 200, y = 100
D. x = 50, y = 300
Question 7
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y. If the consumer's initial \endowment is (x0, y0) = (4, 6), and the price of good x is ₦5, while the price of good y is ₦3, what is the consumer's optimal bundle?
A. x = 2, y = 4
B. x = 3, y = 5
C. x = 4, y = 6
D. x = 5, y = 7
Question 8
A firm's production function is given by Q = 3L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are L = 9 and H = 4, respectively, what is the marginal product of capital (MPH) when L = 9?
A. 1/2
B. 1
C. 2
D. 3
Question 9
The following diagram shows the production possibilities frontier (PPF) of a country. If the country decides to produce 100 units of good X and 50 units of good Y, what will be the opportunity \cost of producing one more unit of good X?
A. 20 units of good Y
B. 30 units of good Y
C. 40 units of good Y
D. 50 units of good Y
Question 10
A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. What is the country's national income?
A. ₦130 billion
B. ₦140 billion
C. ₦150 billion
D. ₦160 billion
Question 11
A perfectly competitive market has a downward-sloping demand curve and a horizontal supply curve. What is the equilibrium price and quantity?
A. Price = $10, Quantity = 100
B. Price = $5, Quantity = 50
C. Price = $15, Quantity = 150
D. Price = $20, Quantity = 200
Question 12
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its quantity demanded?
A. The quantity demanded will increase.
B. The quantity demanded will decrease.
C. The quantity demanded will remain the same.
D. There will be no change in the quantity demanded.
Question 13
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The consumer's budget constraint is given by 2x + 3y = 12. What is the consumer's optimal bundle of goods \( x*, y* \)?
A. x* = 2, y* = 4
B. x* = 3, y* = 3
C. x* = 4, y* = 2
D. x* = 6, y* = 0
Question 14
A consumer's budget constraint is given by the equation 2x + 3y = 12. What is the opportunity \cost of consuming one more unit of good x?
A. The opportunity \cost is 2 units of good y.
B. The opportunity \cost is 3 units of good y.
C. The opportunity \cost is 4 units of good y.
D. The opportunity \cost is 6 units of good y.
Question 15
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. x = 80, y = 60
B. x = 60, y = 80
C. x = 40, y = 120
D. x = 120, y = 40

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