POST UTME SKYLINE UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The Central Bank of Nigeria (CBN) uses monetary policy to control inflation. Which of the following instruments is most effective in reducing inflation?
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Cash Reserve Ratio (CRR)
D. Discount Rate
Question 2
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm increases labor from 4 units to 9 units and capital from 9 units to 16 units, what is the percentage change in \cost?
A. 25%
B. 50%
C. 75%
D. 100%
Question 3
A firm has a \cost function C = 2Q + 3Q^2, where Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. 50
B. 100
C. 150
D. 200
Question 4
Suppose a firm's demand function is given by Qd = 100 - 2P, and its supply function is given by Qs = 2P - 50. Find the equilibrium price and quantity.
A. P = ₦20, Q = 50
B. P = ₦30, Q = 70
C. P = ₦40, Q = 90
D. P = ₦50, Q = 110
Question 5
A government wants to reduce the budget deficit by increa\sing taxes. If the government currently collects ₦100 billion in taxes and sp\ends ₦150 billion, what is the new tax rate if the government wants to reduce the deficit by 20%?
A. 20%
B. 25%
C. 30%
D. 35%
Question 6
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's income is ₦1000, and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (100, 50)
B. (50, 100)
C. (200, 50)
D. (50, 200)
Question 7
A government wants to reduce the budget deficit by reducing sp\ending. If the government currently collects ₦100 billion in taxes and sp\ends ₦150 billion, what is the new sp\ending level if the government wants to reduce the deficit by 20%?
A. ₦120 billion
B. ₦125 billion
C. ₦130 billion
D. ₦135 billion
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 supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦50, 200 units
B. ₦75, 150 units
C. ₦100, 100 units
D. ₦125, 50 units
Question 9
A monopolist faces a demand curve given by P = 100 - Q. If the firm's marginal \cost (MC) is ₦20, what is the firm's optimal quantity (Q)?
A. 5
B. 10
C. 15
D. 20
Question 10
A firm operating in a perfectly competitive market is faced with a short-run production function given by Q = 100 - 2P. If the firm's average revenue (AR) is ₦200, what is the firm's marginal revenue (MR)?
A. ₦400
B. ₦200
C. ₦100
D. ₦50
Question 11
Suppose a firm's revenue function is given by R(x) = 2x^2 + 5x + 1, and its \cost function is given by C(x) = 3x^2 + 2x + 10. Find the break-even point, where TR = TC.
A. \( x = -1 \)
B. \( x = 2 \)
C. \( x = -2 \)
D. \( x = 1 \)
Question 12
A firm has a production function Q = 2√(KL), where Q is the quantity produced, K is the amount of capital, and L is the amount of labor. If the price of capital is ₦100 per unit and the price of labor is ₦50 per unit, and the firm's revenue is ₦10,000, what is the value of L?
A. 100
B. 200
C. 300
D. 400
Question 13
A consumer's budget constraint is given by 2X + 3Y = 12. If the price of good X is $2 per unit, and the price of good Y is $3 per unit, what is the consumer's indifference curve?
A. X = 2Y
B. X = 3Y
C. X = 4Y
D. X = 6Y
Question 14
Determine the price elasticity of demand for a product that experiences a 20% decrease in price, resulting in a 15% increase in quantity demanded. Assume the initial price and quantity demanded are $100 and 100 units, respectively.
A. 0.75
B. 1.25
C. -0.75
D. -1.25
Question 15
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 increases labor from 4 units to 9 units and capital from 9 units to 16 units, what is the percentage change in output?
A. 25%
B. 50%
C. 75%
D. 100%

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: