POST UTME SKYLINE UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A diagram shows a downward-sloping demand curve and an upward-sloping supply curve. If the price elasticity of demand is 0.5 and the price elasticity of supply is 2, what is the likely outcome?
A. Price increases and quantity decreases
B. Price decreases and quantity increases
C. Price remains the same and quantity increases
D. Price increases and quantity increases
Question 2
A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labor, and H is capital. If the firm's current labor and capital inputs are L = 4 and H = 9, respectively, what is the firm's total \cost?
A. ₦24
B. ₦36
C. ₦48
D. ₦60
Question 3
A firm's production function exhibits cons\tant returns to scale. If the firm's current output is 100 units and the price of the input is ₦10 per unit, what is the minimum \cost of producing 200 units of output?
A. ₦2000
B. ₦4000
C. ₦6000
D. ₦8000
Question 4
A firm is producing a product u\sing a production function given by Q = 3L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm is currently producing 100 units of output with 4 units of labor and 9 units of capital, find the returns to scale.
A. Increa\sing
B. Decrea\sing
C. Cons\tant
D. Mixed
Question 5
A firm is operating in the short run and has a total \cost function given by TC = 100 + 2Q + 0.5Q^2. If the firm's output is 10 units, what is the marginal \cost?
A. 5
B. 10
C. 15
D. 20
Question 6
The indifference curve for a consumer is downward sloping because of the law of
A. Diminishing Marginal Rate of Substitution
B. Diminishing Marginal Utility
C. Increa\sing Marginal Rate of Substitution
D. Increa\sing Marginal Utility
Question 7
Agricultural development in Nigeria has been hindered by the lack of access to credit facilities for farmers. Which of the following is a correct statement about the impact of credit constraints on agricultural production?
A. Credit constraints lead to a decrease in agricultural production due to the inability to purchase inputs.
B. Credit constraints lead to an increase in agricultural production due to the ability to purchase inputs.
C. Credit constraints have no impact on agricultural production.
D. Credit constraints lead to a decrease in agricultural production due to the inability to purchase equipment.
Question 8
A consumer has the following indifference curves: IC1: 2x + 3y = 6, IC2: 2x + 3y = 12. If the consumer's initial \endowment is (2, 1), what is the consumer's optimal consumption bundle?
A. (1, 2)
B. (2, 1)
C. (3, 0)
D. (0, 3)
Question 9
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of labor is $10 per unit and the price of capital is $20 per unit, and the firm's budget constraint is 10L + 20K = 100, what is the optimal level of labor and capital?
A. L = 5, K = 2
B. L = 10, K = 5
C. L = 20, K = 10
D. L = 5, K = 10
Question 10
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function given by C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 11
A government plans to increase its exp\enditure by 20% in the next fiscal year. If the current government exp\enditure is ₦5 trillion, what is the expected value of the government exp\enditure in the next fiscal year?
A. ₦5.5 trillion
B. ₦6 trillion
C. ₦6.5 trillion
D. ₦7 trillion
Question 12
A firm is producing a product u\sing a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm is currently producing 100 units of output with 4 units of labor and 9 units of capital, find the marginal product of labor and the marginal product of capital.
A. 2
B. 3
C. 4
D. 5
Question 13
A firm's supply function is given by Q = 50 + 2P, where Q is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied if the price increases by 10%?
A. 10%
B. 20%
C. 30%
D. 40%
Question 14
A firm's demand function for labor is given by L = 100 - 2P_L, where P_L is the wage rate. If the firm's supply function for labor is given by L = 20 + 2P_L, what is the equilibrium wage rate?
A. $20
B. $30
C. $40
D. $50
Question 15
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 + 5, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦50
B. ₦75
C. ₦100
D. ₦125

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: