POST UTME SUMMIT UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A farmer in Nigeria has 100 hectares of land to cultivate maize and sorghum. If the marginal product of maize is 20 tons per hectare and the marginal product of sorghum is 15 tons per hectare, and the farmer can sell maize at ₦200 per ton and sorghum at ₦150 per ton, what is the optimal allocation of land between maize and sorghum?
A. 50 hectares for maize and 50 hectares for sorghum
B. 60 hectares for maize and 40 hectares for sorghum
C. 70 hectares for maize and 30 hectares for sorghum
D. 80 hectares for maize and 20 hectares for sorghum
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the monopolist's profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 3
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy includes a 10% tax on all agricultural produce sold in the market. U\sing the concept of elasticity of demand, explain why the government's policy may not achieve its int\ended goal.
A. The policy will lead to a decrease in the quantity of agricultural produce sold, resulting in a decrease in revenue.
B. The policy will lead to an increase in the quantity of agricultural produce sold, resulting in an increase in revenue.
C. The policy will have no effect on the quantity of agricultural produce sold.
D. The policy will lead to a decrease in the price of agricultural produce, resulting in a decrease in revenue.
Question 4
The production function for a firm in Nigeria is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm increases labor from 100 units to 120 units and capital from 100 units to 120 units, what will be the effect on output?
A. Increase in output
B. Decrease in output
C. No change in output
D. Uncertain effect on output
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm hires 25 workers and 16 machines, find the marginal product of labor.
A. 0.5
B. 1
C. 2
D. 4
Question 6
A country has a trade deficit of $10 billion and a current account deficit of $5 billion. What is the balance of payments deficit?
A. $5 billion
B. $10 billion
C. $15 billion
D. $20 billion
Question 7
A consumer has a budget of ₦10,000 to sp\end on two goods, A and B. The price of good A is ₦5,000 and the price of good B is ₦3,000. If the consumer sp\ends all their budget on the two goods, what is the opportunity \cost of buying good A?
A. ₦2,000
B. ₦3,000
C. ₦4,000
D. ₦5,000
Question 8
A government's budget constraint is given by B = T + I, where B is the budget, T is the tax revenue, and I is the interest payment. If the government's tax revenue is ₦500 billion and the interest payment is ₦200 billion, what is the government's budget?
A. ₦700 billion
B. ₦800 billion
C. ₦900 billion
D. ₦1 trillion
Question 9
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be allocated to other goods. This is an example of a _______ opportunity \cost.
A. Opportunity \cost of production
B. Opportunity \cost of consumption
C. Opportunity \cost of distribution
D. Opportunity \cost of exchange
Question 10
A firm is producing a good with the following production function: Q = 2L^0.5 * K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal combination of labor and capital that minimizes the \cost of production.
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 100, K = 100
D. L = 50, K = 50
Question 11
The government of Nigeria has introduced a new policy aimed at increa\sing agricultural production. The policy involves the provision of subsidies to farmers who use certain inputs. If the subsidy is ₦100 per unit of input, and the farmer uses 100 units of input, what is the total subsidy received by the farmer?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 12
A firm is producing a good with the following production function: Q = 2L^0.5 * K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal combination of labor and capital that minimizes the \cost of production.
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 100, K = 100
D. L = 50, K = 50
Question 13
A farmer in Nigeria produces wheat u\sing the following production function: Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the price of wheat is ₦100 per unit and the price of labor is ₦50 per unit, what is the optimal level of labor and capital?
A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 100, K = 50
Question 14
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦10 and ₦20, respectively, and the consumer's income is ₦100, what is the consumer's optimal bundle?
A. x = 5, y = 2
B. x = 3, y = 4
C. x = 2, y = 5
D. x = 4, y = 3
Question 15
A consumer has the following utility function: U = 2x^0.5 * y^0.5. If the price of good x is ₦50 per unit and the price of good y is ₦100 per unit, find the optimal combination of x and y that maximizes the consumer's utility.
A. x = 100, y = 50
B. x = 50, y = 100
C. x = 100, y = 100
D. x = 50, y = 50

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