POST UTME SUMMIT UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a downward-sloping demand curve. If the demand curve is
A. more inelastic
B. more elastic
C. less elastic
D. more inelastic than the demand curve for a perfectly competitive firm
Question 2
A perfectly competitive firm's supply curve is upward-sloping because of the law of increa\sing \costs. What is the name of this law?
A. The Law of Diminishing Returns
B. The Law of Increa\sing Costs
C. The Law of Supply
D. The Law of Demand
Question 3
A firm produces two goods, A and B, u\sing two inputs, Labour (L) and Capital (K). The production function for good A is given by Q_A = 10L^0.5K^0.5 and for good B is Q_B = 5L^0.2K^0.8. If the firm has 100 units of Labour and 200 units of Capital, what is the total output?
A. 1000
B. 1200
C. 1500
D. 1800
Question 4
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1. If the firm's marginal revenue is 10, find the value of x.
A. 1
B. 2
C. 3
D. 4
Question 5
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its net foreign income?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 6
A monopolist faces a demand curve given by Q = 100 - 2P. If the monopolist's marginal \cost is MC = 10, what is the optimal price and quantity to maximize profits?
A. P = 40, Q = 30
B. P = 50, Q = 20
C. P = 60, Q = 10
D. P = 70, Q = 5
Question 7
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 10, what is the optimal bundle of x and y to maximize utility?
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 4, y = 0
D. x = 1, y = 3
Question 8
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's current 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 = 20, y = 10
B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25
Question 9
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal \cost curve
C. average revenue curve
D. average \cost curve
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's \cost function is C = 10L + 20K, what is the optimal level of L and K to minimize \costs?
A. L = 4, K = 4
B. L = 8, K = 2
C. L = 16, K = 1
D. L = 32, K = 0.5
Question 11
A consumer's utility function is given by U = 2x + 3y. If the consumer's current 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 = 20, y = 10
B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25
Question 12
A government's budget constraint is given by B = T + M, where B is the budget, T is the tax revenue, and M is the government's sp\ending. If the government's tax revenue is 100 and its sp\ending is 150, find the value of B.
A. 100
B. 150
C. 200
D. 250
Question 13
A firm's revenue function is given by R(x) = 100x - 2x^2. The marginal revenue function is
A. R'(x) = 100 - 4x
B. R'(x) = 100 + 4x
C. R'(x) = 100 - 2x
D. R'(x) = 100 + 2x
Question 14
A country's balance of payments is in equilibrium when the current account is equal to the capital account. True or False?
A. True
B. False
C. Dep\ends on the country's economic conditions
D. Not enough information to determine
Question 15
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's current 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 = 20, y = 10
B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25

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