POST UTME PAN-ATLANTIC UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of comparative advantage suggests that a country should specialize in producing goods for which it has a
A. absolute advantage
B. comparative advantage
C. opportunity \cost
D. marginal utility
Question 2
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's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 3
A firm has a production function given by Q = 2L + 3K, where L and K are the quantities of labor and capital used. The \cost function is C = 10L + 20K. Find the optimal quantities of L and K.
A. L = 5, K = 5
B. L = 10, K = 0
C. L = 0, K = 10
D. L = 5, K = 10
Question 4
A firm's demand function for a good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal \cost is ₦10, what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue function is MR = 50 - 2P. Find the price at which the monopolist will produce 80 units.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
The agricultural sector in Nigeria contributes significantly to the country's GDP, but its growth has been hindered by
A. poor infrastructure and lack of access to credit
B. high population growth and urbanization
C. climate change and soil degradation
D. all of the above
Question 7
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 = 12, and the price of good x is ₦2 and the price of good y is ₦3, what is the consumer's optimal bundle of goods?
A. x = 3, y = 4
B. x = 4, y = 3
C. x = 6, y = 2
D. x = 2, y = 6
Question 8
A country's balance of payments is in equilibrium when its current account is equal to its capital account. Which of the following is a consequence of this equilibrium?
A. The exchange rate is stable
B. The trade deficit is reduced
C. The trade surplus is increased
D. The capital account is balanced
Question 9
A firm is considering investing in a new project with an initial \cost of ₦1,500,000 and expected annual profits of ₦250,000. What is the payback period of the project?
A. 5 years
B. 6 years
C. 7 years
D. 8 years
Question 10
A firm is considering two production techno\logies: one that requires an investment of ₦100,000 and yields a profit of ₦150,000, and another that requires an investment of ₦200,000 and yields a profit of ₦300,000. If the firm's initial investment is ₦50,000, which techno\logy should it choose?
A. Techno\logy 1
B. Techno\logy 2
C. Both techno\logies are equally profitable
D. Neither techno\logy is profitable
Question 11
The production function for a firm is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 12
A consumer's utility function is given by U(x,y) = 2x + 3y. 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.
A. (100, 0)
B. (80, 20)
C. (60, 40)
D. (40, 60)
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 100 and the number of workers is 25, find the optimal capital.
A. 50
B. 75
C. 100
D. 125
Question 14
A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm's marginal revenue is 50, find the value of x.
A. 20
B. 30
C. 40
D. 50
Question 15
A firm is operating in a monopoly market with a demand curve given by P = 100 - 2Q. If the firm's marginal \cost is cons\tant at ₦20, what is the firm's optimal quantity of output?
A. 20 units
B. 30 units
C. 40 units
D. 50 units

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