POST UTME VERITAS UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost is MC = 10. What is the profit-maximizing price?
A. ₦50
B. ₦40
C. ₦30
D. ₦20
Question 2
A consumer has a utility function given by U = 2x + 3y. The prices of x and y are ₦5 and ₦3 respectively. The consumer's budget is ₦20. What is the optimal bundle of x and y?
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 3, y = 3
D. x = 1, y = 5
Question 3
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 200 - 2Q. What is the firm's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor increases by 20% and the price of capital increases by 15%, what is the new production level?
A. 10
B. 12
C. 15
D. 18
Question 5
A consumer's utility function is given by the equation U = 2x + 3y, where U is the utility and x and y are the quantities of two goods. If the quantities of the two goods are 5 and 3 respectively, what is the utility?
A. 13
B. 15
C. 17
D. 19
Question 6
A perfectly competitive market is characterized by a large number of firms producing a homogeneous product, and each firm has complete knowledge of market conditions.
A. Monopoly
B. Oligopoly
C. Perfect Competition
D. Monopsony
Question 7
A consumer's utility function is a mathematical representation of the satisfaction or pleasure derived from consuming a particular good or service.
A. Production Function
B. Cost-Benefit Analysis
C. Consumer's Utility Function
D. Supply and Demand Curve
Question 8
A country's money supply is given by the equation M = 1000 + 0.5B, where M is the money supply and B is the bank reserves. If the bank reserves are ₦500,000, what is the money supply?
A. ₦1,250,000
B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000
Question 9
A perfectly competitive market is characterized by a large number of firms producing a homogeneous product, and each firm has complete knowledge of market conditions.
A. Monopoly
B. Oligopoly
C. Perfect Competition
D. Monopsony
Question 10
A firm faces a demand curve given by Q = 50 - 2P. The firm's marginal \cost is MC = 10. What is the profit-maximizing quantity?
A. 20
B. 25
C. 30
D. 35
Question 11
The concept of opportunity \cost is the value of the next best alternative that is given up when a choice is made.
A. Scarcity
B. Opportunity Cost
C. Law of Increa\sing Costs
D. Law of Diminishing Marginal Utility
Question 12
A consumer has a utility function given by U = 2x + 3y. The prices of x and y are ₦5 and ₦3 respectively. The consumer's budget is ₦20. What is the optimal bundle of x and y?
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 3, y = 3
D. x = 1, y = 5
Question 13
The elasticity of demand for a product is 0.5. If the price of the product increases by 10%, what is the percentage change in the quantity demanded?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
Suppose a country has a production possibility frontier (PPF) given by the equation \( Y = 2X + 3Z \), where (Y) is the total output, (X) is the quantity of good X produced, and (Z) is the quantity of good Z produced. If the country's resources are fully employed, find the maximum possible output.
A. \( Y = 5 \)
B. \( Y = 10 \)
C. \( Y = 15 \)
D. \( Y = 20 \)
Question 15
A government imposes a tax on a firm's profits. The tax rate is 20% of the profits. If the firm's profits before tax are ₦1,000,000, what is the amount of tax paid?
A. ₦200,000
B. ₦150,000
C. ₦250,000
D. ₦300,000

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