POST UTME SUMMIT UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦150 per unit, and the firm's budget constraint is 200L + 300K = ₦100,000, find the optimal level of labor (L) and capital (K) that maximizes the firm's output.
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 15, K = 15
D. L = 30, K = 5
Question 2
A firm is producing a good with a production function \( Q = 2L^{0.5}K^{0.5} \). If the firm's \cost of production is given by \( C = 10L + 20K \), find the firm's optimal input bundle of L and K.
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 15, K = 15
D. L = 5, K = 25
Question 3
A country's balance of payments is given by the equation \( BOP = X - M \), where X is the country's exports and M is its imports. If the country's exports are ₦1000 and its imports are ₦800, find the country's balance of payments.
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 4
A firm has a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 10Q + 100. If the firm produces 20 units, what is the profit-maximizing price?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 5
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports (X) are ₦100 billion, imports (M) are ₦80 billion, foreign direct investment (F) is ₦20 billion, and domestic investment (I) is ₦15 billion, what is the balance of payments?
A. ₦25 billion surplus
B. ₦5 billion deficit
C. ₦10 billion surplus
D. ₦20 billion deficit
Question 6
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (10, 5)
B. (5, 10)
C. (15, 3)
D. (20, 2)
Question 7
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 L = 4 and H = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the given input levels?
A. 1
B. 2
C. 3
D. 4
Question 8
A consumer has a utility function U(x,y) = 2x + 3y, where x is the quantity of good X and y is the quantity of good Y. If the consumer has a budget of ₦100 and the prices of good X and good Y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. (10,20)
B. (15,15)
C. (20,10)
D. (25,5)
Question 9
A firm is producing a good u\sing a production function given by Q = 2L^0.5K^0.5. If the firm's revenue function is given by R = 100Q, find the level of output that maximizes the firm's revenue.
A. 10
B. 20
C. 30
D. 40
Question 10
Suppose a firm is producing a good u\sing a production function given by Q = 2L^0.5K^0.5. If the firm's \cost function is given by C = 100 + 10L + 20K, find the level of output that minimizes the firm's \cost.
A. 10
B. 20
C. 30
D. 40
Question 11
A consumer's budget constraint is given by B = P1x + P2y, where B is the budget, P1 and P2 are the prices of two goods, and x and y are the quantities of the two goods consumed. If the consumer's budget is ₦1000, the prices of the two goods are ₦2 and ₦3, respectively, and the consumer's income is ₦1200, what is the consumer's optimal bundle of goods?
A. x = 4, y = 3
B. x = 3, y = 4
C. x = 2, y = 6
D. x = 6, y = 2
Question 12
A monopolist faces a demand curve given by Qd = 100 - P and a marginal revenue curve given by MR = 20 - 2P. Find the monopolist's profit-maximizing price and quantity.
A. ₦75, 400
B. ₦100, 300
C. ₦125, 200
D. ₦150, 100
Question 13
A firm is producing a good with a production function \( Q = 2L^{0.5}K^{0.5} \). If the firm's \cost of production is given by \( C = 10L + 20K \), find the firm's optimal input bundle of L and K.
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 15, K = 15
D. L = 5, K = 25
Question 14
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 15
A consumer's budget constraint is given by the equation \( 2x + 3y = 100 \). If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (10, 5)
B. (5, 10)
C. (15, 3)
D. (20, 2)

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