POST UTME PAN-ATLANTIC UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by R(q) = 100q - 2q^2. If the firm produces 10 units of output, what is the marginal revenue?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 2
A firm's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is output. If the firm's marginal revenue is MR = 100 - 4Q, what is the profit-maximizing quantity of output?
A. 10
B. 20
C. 30
D. 40
Question 3
A country's inflation rate is given by π = \( M/P \) - 1, where π is the inflation rate, M is the money supply, and P is the price level. If the money supply increases by 10% and the price level increases by 5%, what is the new inflation rate?
A. 0.05
B. 0.10
C. 0.15
D. 0.20
Question 4
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue function is given by MR = 200 - 4Q, what is the optimal price to charge?
A. 20 units of currency
B. 30 units of currency
C. 40 units of currency
D. 50 units of currency
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 9 units, and holds capital input cons\tant at 16 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 6
A consumer has a utility function given by U = 2X + 3Y, where X and Y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦200 and ₦300 respectively, what is the optimal bundle?
A. (2, 1)
B. (4, 2)
C. (6, 3)
D. (8, 4)
Question 7
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 10x + 5y = 100, what is the optimal bundle of x and y to maximize utility?
A. x = 5, y = 10
B. x = 10, y = 5
C. x = 7.5, y = 7.5
D. x = 3, y = 15
Question 8
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 9
The government of a country imposes a tax on imports to raise revenue. This tax is an example of a _______ tax.
A. Direct
B. Indirect
C. Proportional
D. Progressive
Question 10
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 5 units of output, what is the total \cost?
A. ₦135
B. ₦150
C. ₦165
D. ₦180
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 20, what is the optimal price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 12
A country's government decides to implement a value-added tax (VAT) to increase revenue. If the VAT rate is 10% and the price of a product is ₦1000, what is the amount of VAT paid by the consumer?
A. ₦100
B. ₦120
C. ₦150
D. ₦200
Question 13
A consumer has a budget constraint of 100 units of currency and faces a price of 2 units of currency per unit of good X. If the consumer's indifference curve is given by U = 2X^0.5, what is the optimal quantity of good X to consume?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 14
A firm's revenue function is given by R = 2Q - 3Q^2, where R is the revenue and Q is the output. If the firm increases output from 100 to 121 units, what is the percentage change in revenue?
A. 10%
B. 15%
C. 20%
D. 25%
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 9 units, and holds capital input cons\tant at 16 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%

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