POST UTME PAN-ATLANTIC UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand curve is given by \( Q = 100 - 2P \). If the firm's marginal revenue curve is given by \( MR = 200 - 2Q \), what is the firm's marginal \cost curve?
A. \( MC = 10 + 2Q \)
B. \( MC = 10 - 2Q \)
C. \( MC = 20 + 2Q \)
D. \( MC = 20 - 2Q \)
Question 2
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the equilibrium price and quantity in the market?
A. \( P = 100, Q = 1000 \)
B. \( P = 50, Q = 2000 \)
C. \( P = 200, Q = 500 \)
D. \( P = 150, Q = 750 \)
Question 3
Consider a production function \( Q = f\( L, K \ \) ) where ( Q ) is the output, ( L ) is labor, and ( K ) is capital. If the marginal product of labor is \( MPL = \frac{partial Q}{partial L} = 10L \) and the marginal product of capital is \( MPK = \frac{partial Q}{partial K} = 20K \), what is the returns to scale of the production function?
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale
Question 4
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by the equation Qs = 2P - 100, what is the equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A firm's demand curve is given by \( Q = 100 - 2P \). If the firm's marginal revenue curve is given by \( MR = 200 - 2Q \), what is the firm's marginal \cost curve?
A. \( MC = 10 + 2Q \)
B. \( MC = 10 - 2Q \)
C. \( MC = 20 + 2Q \)
D. \( MC = 20 - 2Q \)
Question 6
The demand for a product is given by the demand curve \( Q_d = 100 - 2P \), where Q_d is the quantity demanded and P is the price. If the supply curve is given by \( Q_s = 2P - 100 \), what is the equilibrium price and quantity?
A. P = 50, Q = 50
B. P = 75, Q = 25
C. P = 25, Q = 75
D. P = 100, Q = 0
Question 7
The concept of scarcity in economics refers to the
A. inability to produce a good or service
B. inability to meet the wants and needs of society
C. inability to produce a good or service at a given price
D. inability to produce a good or service at a given quantity
Question 8
A firm's elasticity of demand is given by the equation E = 0.5P, where E is the elasticity and P is the price. If the firm's price is ₦50, what is its elasticity of demand?
A. 0.25
B. 0.5
C. 0.75
D. 1.0
Question 9
Suppose the Nigerian government imposes a tariff on imported goods. If the tariff is 20% and the price of the imported good is 100, what will be the new price of the good?
A. 80
B. 100
C. 120
D. 140
Question 10
The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit
A. increases
B. decreases
C. remains cons\tant
D. becomes negative
Question 11
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal \cost curve
C. average revenue curve
D. average \cost curve
Question 12
A country's balance of payments deficit is caused by
A. a trade deficit and a capital account surplus
B. a trade surplus and a capital account deficit
C. a trade deficit and a capital account deficit
D. a trade surplus and a capital account surplus
Question 13
A farmer is faced with a choice between cultivating wheat or maize. If the opportunity \cost of cultivating wheat is ₦50,000 and the opportunity \cost of cultivating maize is ₦30,000, what will be the opportunity \cost of choo\sing maize over wheat?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 14
Consider the following diagram:
A. The demand curve is downward sloping
B. The supply curve is upward sloping
C. The equilibrium price is 10
D. The equilibrium quantity is 20
Question 15
A country is experiencing a recession. The government implements a fiscal policy to stimulate the economy. What will be the effect on the aggregate demand curve?
A. Shift to the left
B. Shift to the right
C. Remain the same
D. Become perfectly elastic

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