POST UTME REDEEMERS UNIVERSITY 2025 Economics | Objective

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Question 1
A firm has a \cost function given by ( C(x) = 100 + 2x + 0.01x^2 ). If the firm produces 100 units of output, what is the total \cost?
A. ₦1200
B. ₦1300
C. ₦1400
D. ₦1500
Question 2
A government imposes a tax on a particular good. What is the effect of this tax on the supply curve?
A. The supply curve shifts to the left.
B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve becomes vertical.
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 4
The demand function for a product is given by \( Q = 100 - 2P \). If the price elasticity of demand is 0.5, what is the price at which the quantity demanded is 50?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 5
A consumer's utility function is given by ( U(x,y) = 10x + 20y - x^2 - 2y^2 ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the optimal bundle of x and y?
A. x=20, y=10
B. x=15, y=5
C. x=10, y=0
D. x=0, y=10
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 7
A country's balance of payments (BOP) is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are $100 million and its imports are $120 million, what is the BOP?
A. $20 million surplus
B. $20 million deficit
C. $40 million surplus
D. $40 million deficit
Question 8
A firm has a \cost function given by ( C(x) = 100 + 2x + 0.01x^2 ). If the firm produces 100 units of output, what is the total \cost?
A. ₦1200
B. ₦1300
C. ₦1400
D. ₦1500
Question 9
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is given by MR = 100 - 2q, where q is the quantity sold, find the firm's optimal quantity and price.
A. q = 25, p = 75
B. q = 50, p = 50
C. q = 75, p = 37.5
D. q = 100, p = 25
Question 10
A consumer's utility function is given by U = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = ₦100. If the consumer's income is ₦1000, what is the optimal value of y?
A. 20
B. 10
C. 15
D. 25
Question 11
A firm is facing a demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is given by MC = 10 + 2Q. If the firm's fixed \cost is ₦1000, what is the profit-maximizing quantity?
A. 50
B. 60
C. 70
D. 80
Question 12
A consumer's utility function is given by U = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = ₦100. If the consumer's income is ₦1000, what is the optimal bundle of x and y?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 25, y = 5
Question 13
A firm is producing a good u\sing a production function with cons\tant returns to scale. What does this imply about the firm's production possibilities?
A. The firm can produce more output with the same inputs.
B. The firm can produce the same output with fewer inputs.
C. The firm can produce the same output with more inputs.
D. The firm can produce more output with fewer inputs.
Question 14
A government is considering a tax on a particular good to reduce its consumption. If the demand for the good is given by Q = 100 - 2P and the supply is given by Q = 2P - 10, what is the optimal tax rate?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, what is the optimal combination of L and K that minimizes the \cost of production?
A. L = 4, K = 1
B. L = 2, K = 2
C. L = 1, K = 4
D. L = 0, K = 0

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