POST UTME SKYLINE UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue is MR = 50 - 2Q, what is the firm's optimal quantity?
A. 20
B. 30
C. 40
D. 50
Question 2
A government's fiscal policy is given by the equation \( G = 2T + 3B \), where G is the government exp\enditure, T is the tax revenue, and B is the budget. If the tax revenue is ₦500 and the budget is ₦800, what is the government exp\enditure?
A. ₦1200
B. ₦1000
C. ₦800
D. ₦600
Question 3
A country's balance of payments account shows a trade deficit of ₦500 billion and a current account deficit of ₦300 billion. If the country's capital account surplus is ₦200 billion, what is the value of its financial account deficit?
A. ₦700 billion
B. ₦800 billion
C. ₦900 billion
D. ₦1 trillion
Question 4
A firm's production function is given by the equation \( Q = 2L^2 + 3K^2 \), where Q is the output, L is the labor, and K is the capital. If the firm uses 10 units of labor and 5 units of capital, what is the firm's output?
A. 100
B. 50
C. 20
D. 10
Question 5
A monopolistically competitive firm faces a demand curve with elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?
A. -20%
B. -10%
C. -5%
D. -15%
Question 6
The Nigerian government has implemented a policy to increase the production of rice through the use of irrigation. Which of the following is a potential benefit of this policy?
A. Increased employment opportunities in the agricultural sector
B. Improved food security through increased rice production
C. Increased government revenue through taxes on rice sales
D. Reduced poverty rates among rural communities
Question 7
Consider a country with a GDP of ₦10 trillion and a GNP of ₦12 trillion. If the country's net factor income from abroad is ₦1.5 trillion, what is the value of its net domestic product?
A. ₦8.5 trillion
B. ₦9.5 trillion
C. ₦10.5 trillion
D. ₦11.5 trillion
Question 8
A consumer's indifference curve is represented 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, find the consumer's optimal bundle of x and y.
A. (200, 100)
B. (150, 200)
C. (100, 150)
D. (50, 50)
Question 9
A government budget is given by the equation \( B = T + G \), where B is the budget, T is the tax revenue, and G is the government exp\enditure. If the tax revenue is ₦500 and the government exp\enditure is ₦300, what is the government's budget?
A. ₦800
B. ₦700
C. ₦600
D. ₦500
Question 10
A country's government imposes a tax on imports of 10%. If the pre-tax price of the good is ₦100, what is the new price of the good after the tax is imposed?
A. ₦110
B. ₦120
C. ₦130
D. ₦140
Question 11
Consider a firm operating in a perfectly competitive market with a cons\tant returns to scale production function. If the firm's revenue function is given by R(x) = 100x - 2x^2 and the price of the good is P = 10, calculate the firm's marginal revenue (MR) and marginal \cost (MC) at the profit-maximizing output level.
A. \( MR = 100 - 4x \)
B. \( MR = 100 - 2x \)
C. \( MC = 100 - 4x \)
D. \( MC = 100 - 2x \)
Question 12
A firm's industrial production function is given by the equation \( Q = 2I^2 + 3M^2 \), where Q is the output, I is the industrial input, and M is the machinery. If the firm uses 10 units of industrial input and 5 units of machinery, what is the firm's output?
A. 100
B. 50
C. 20
D. 10
Question 13
A firm's revenue function is given by R(x) = 20x - 2x^2. If the firm's \cost function is C(x) = 2x^2 + 10x + 5, what is the firm's profit function?
A. P(x) = 8x^2 + 10x - 5
B. P(x) = 8x^2 + 10x + 5
C. P(x) = 8x^2 - 10x - 5
D. P(x) = 8x^2 - 10x + 5
Question 14
A firm's production function is given by Q = 100L^0.5K^0.5. If the firm increases its labor input by 20% and its capital input by 15%, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 15
A firm's industrial production function is given by the equation \( Q = 2I^2 + 3M^2 \), where Q is the output, I is the industrial input, and M is the machinery. If the firm uses 10 units of industrial input and 5 units of machinery, what is the firm's output?
A. 100
B. 50
C. 20
D. 10

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