POST UTME SKYLINE UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good u\sing a production function \( Q = 2L^2 + 3K \). If the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, and the firm's revenue is ₦1000, what is the firm's optimal input bundle?
A. (10, 5)
B. (5, 10)
C. (20, 0)
D. (0, 20)
Question 2
A consumer's utility function is given by U(x,y) = 2x + 3y, where x is the number of units of good X and y is the number of units of good Y. If the consumer's budget constraint is 2x + 3y = 12, find the optimal values of x and y.
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 3
A firm's \cost function is given by C = 2x + 3x^2, where x is the quantity of output produced. If the selling price is ₦10 per unit, and the firm produces 10 units, what is the profit?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 4
A consumer's budget constraint is given by 2x + 3y = 12, where x is the number of units of good X and y is the number of units of good Y. If the consumer's utility function is U(x,y) = 2x + 3y, find the optimal values of x and y.
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 5
A country's demand for a good is represented by the equation \( Q = 100 - 2P \). If the price of the good is ₦50, what is the quantity demanded?
A. 50
B. 100
C. 150
D. 200
Question 6
A central bank increases the reserve requirement for commercial banks. What will be the effect on the money supply?
A. Increase
B. Decrease
C. Remain unchanged
D. No effect
Question 7
Agricultural development in Nigeria has been hindered by the lack of irrigation facilities. If the government decides to invest in irrigation facilities, which of the following would be the most likely outcome?
A. Increased crop yields and improved food security
B. Reduced crop yields and decreased food security
C. No change in crop yields and food security
D. Increased crop yields but decreased food security
Question 8
Consider a consumer with a utility function U(x,y) = 2x + 3y - x^2 - 2xy. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the optimal bundle of x and y that the consumer will purchase?
A. (x,y) = (10,20)
B. (x,y) = (20,10)
C. (x,y) = (15,15)
D. (x,y) = (5,5)
Question 9
A firm has a production function Q = 2L + 3K, where L is labor and K is capital. If the firm's output is 100 units and the price of output is ₦10 per unit, what is the minimum \cost of production?
A. ₦500
B. ₦600
C. ₦700
D. ₦800
Question 10
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 = 40, y = 60
B. x = 60, y = 40
C. x = 80, y = 20
D. x = 20, y = 80
Question 11
Consider a firm operating in a perfectly competitive market. If the market demand curve is given by Qd = 100 - 2P, and the marginal revenue (MR) is given by MR = 200 - 2Q, what is the relationship between the marginal revenue product (MRP) and the marginal product (MP)?
A. MRP = MP
B. MRP > MP
C. MRP < MP
D. MRP = -MP
Question 12
A firm's \cost function is given by (C(q) = 10q + 100). If the firm's revenue function is (R(q) = 20q), what is the profit-maximizing quantity of the product?
A. \( q = 5 \)
B. \( q = 10 \)
C. \( q = 15 \)
D. \( q = 20 \)
Question 13
A firm's demand function is Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's revenue is ₦1000, what is the price elasticity of demand?
A. -1
B. -2
C. -3
D. -4
Question 14
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P, and the marginal \cost (MC) of each firm is cons\tant at ₦10, what is the equilibrium price and quantity?
A. ₦50, 50 units
B. ₦40, 60 units
C. ₦30, 70 units
D. ₦20, 80 units
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the price of labor is ₦10 per unit, what is the minimum \cost of production?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000

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