POST UTME VERITAS UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total revenue function is given by TR = 100x - 2x^2. If the firm's current output is x = 10, what is the firm's marginal revenue?
A. 80
B. 90
C. 100
D. 110
Question 2
A consumer's budget constraint is given by 2x + 3y = 1000. If the consumer's utility function is U(x, y) = 2x + 3y, what is the consumer's optimal bundle?
A. 500, 333
B. 333, 500
C. 250, 333
D. 333, 250
Question 3
A government is considering a policy to reduce the price of a particular good. The demand function for the good is given by Q = 100 - 2P, and the supply function is given by Q = 2P - 10. If the government wants to reduce the price of the good by 10%, what will be the new equilibrium price?
A. \( P = 15 \)
B. \( P = 20 \)
C. \( P = 25 \)
D. \( P = 30 \)
Question 4
A government imposes a tax on a firm's output. The firm's supply curve is given by \( S = 10 + 2q \). The tax rate is \( t = 5 \). Find the firm's new supply curve.
A. 15 + 2q
B. 20 + 2q
C. 25 + 2q
D. 30 + 2q
Question 5
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^\( 1/2 \)H^\( 1/2 \). If the firm's current input prices are w = 10 and r = 20, and the current output price is p = 30, calculate the firm's optimal input mix (L, H) u\sing the Lagrange method, assuming a cons\tant returns to scale production techno\logy.
A. \( L = 100, H = 100 \)
B. \( L = 50, H = 50 \)
C. \( L = 200, H = 200 \)
D. \( L = 25, H = 25 \)
Question 6
The Marshall Plan was a post-war economic aid program implemented by the United States to help rebuild which of the following countries?
A. Germany
B. France
C. Italy
D. Japan
Question 7
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's trade balance is in surplus by ₦100 billion, its current account is in deficit by ₦50 billion, and its capital account is in surplus by ₦20 billion, what is the value of BOP?
A. ₦70 billion
B. ₦80 billion
C. ₦90 billion
D. ₦100 billion
Question 8
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's current inputs are L = 16 and K = 9, what is the marginal product of labor?
A. 4
B. 6
C. 8
D. 10
Question 9
Suppose the demand for a product is given by the equation \( Q_d = 100 - 2P \) and the supply is given by \( Q_s = 2P - 10 \). If the market is in equilibrium, what is the price of the product?
A. 15
B. 20
C. 25
D. 30
Question 10
The concept of comparative advantage in international trade suggests that a country should specialize in producing goods for which it has a lower opportunity \cost compared to another country. Which of the following is a correct example of comparative advantage?
A. Nigeria should produce more textiles because it has a larger labor force.
B. Nigeria should produce more agricultural products because it has a more favorable climate.
C. Nigeria should produce goods for which it has a lower opportunity \cost compared to another country.
D. Nigeria should import goods from other countries because it lacks the necessary resources.
Question 11
A firm's \cost function is given by C(x) = 2x^2 + 5x + 10. If the firm produces 20 units, what is the marginal \cost?
A. 45
B. 50
C. 55
D. 60
Question 12
A firm's \cost function is given by C(x) = 2x^2 + 5x + 10. If the firm produces 20 units, what is the total \cost?
A. 200
B. 250
C. 300
D. 350
Question 13
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 14
Consider a country's balance of payments account, which includes the following transactions: Exports of goods = ₦100 billion, Imports of goods = ₦120 billion, Services = ₦20 billion, and Transfer payments = ₦15 billion. What is the country's balance of payments deficit?
A. ₦25 billion
B. ₦30 billion
C. ₦35 billion
D. ₦40 billion
Question 15
Consider a production function ( f(x) = 2x^2 + 5x + 3 ) where ( x ) represents the number of units produced. If the marginal product of labor is 10 units when \( x = 4 \), what is the value of the average product of labor?
A. 15
B. 20
C. 25
D. 30

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