POST UTME SUMMIT UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government is considering a policy to reduce inflation by increa\sing the reserve requirement for commercial banks. If the current reserve requirement is 10% and the government increases it to 15%, what is the expected effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 2
A consumer's utility function is given by U = 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?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 3
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are 4 and 9 units respectively, what is the marginal product of labor (MPL) when H = 9?
A. 1
B. 2
C. 3
D. 4
Question 4
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget constraint is 10x + 5y = 50, what is the optimal quantity of good x?
A. 2
B. 4
C. 6
D. 8
Question 5
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost (MC) is 10, what is the optimal price (P) and quantity (Q) that the firm should produce?
A. P = 40, Q = 60
B. P = 50, Q = 50
C. P = 60, Q = 40
D. P = 70, Q = 30
Question 6
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, find the optimal quantities of x and y.
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 0
D. x = 0, y = 10
Question 7
A government imposes a tax of ₦100 on a firm's output. If the firm's demand function is given by Q = 100 - 2P, find the new demand function.
A. Q = 100 - 2P
B. Q = 100 - 4P
C. Q = 100 + 2P
D. Q = 100 + 4P
Question 8
A firm has a production function F(x) = 2x^2 + 3x - 4. If the price of the good is P = 10, find the profit-maximizing quantity.
A. x = 2
B. x = 3
C. x = 4
D. x = 5
Question 9
A firm's production function is given by Q = 2L^0.5H^0.5. 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 10
A firm's production function is given by Q = 100K^0.5L^0.5. What is the firm's marginal product of labor?
A. \frac{1}{2} \left\( \frac{Q}{L} \right \)^{0.5}
B. \frac{1}{2} \left\( \frac{Q}{K} \right \)^{0.5}
C. \frac{1}{2} \left\( \frac{K}{L} \right \)^{0.5}
D. \frac{1}{2} \left\( \frac{L}{K} \right \)^{0.5}
Question 11
A monopolist faces a demand curve with a price elasticity of 0.8. If the monopolist increases the price of its product by 10%, what is the percentage change in the quantity demanded?
A. -8%
B. -10%
C. -12%
D. -15%
Question 12
A government is considering a tax on a particular good. If the tax is 10% of the price of the good, and the demand curve for the good is given by Q = 100 - 2P, what is the effect on the equilibrium price and quantity?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price remains the same, quantity decreases
D. Price remains the same, quantity increases
Question 13
A country's money supply is increa\sing at a rate of 10% per annum. What is the expected effect on the country's inflation rate?
A. The inflation rate will decrease.
B. The inflation rate will increase.
C. The inflation rate will remain cons\tant.
D. The inflation rate will fluctuate.
Question 14
A firm's \cost function is given by C = 2L + 3H, where L is labor and H is capital. If the firm's current labor and capital inputs are 4 and 9 units respectively, what is the total \cost?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 15
A firm's demand curve is given by Qd = 100 - 2P, and the supply curve is given by Qs = 2P - 50. Find the equilibrium price and quantity.
A. ₦50, 75
B. ₦25, 50
C. ₦75, 25
D. ₦100, 0

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