POST UTME WELLSPRING UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a production function \( Q = 2L^2 + 3K^2 \). If the firm's output is 100 units and the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, find the optimal combination of labor and capital.
A. (10, 5)
B. (5, 10)
C. (15, 3)
D. (20, 2)
Question 2
A country has a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. What is the capital account surplus?
A. ₦50 billion
B. ₦75 billion
C. ₦100 billion
D. ₦150 billion
Question 3
A monopolist faces a demand curve with a price elasticity of -2. What is the price elasticity of the demand curve?
A. The price elasticity of the demand curve is -2.
B. The price elasticity of the demand curve is -1.
C. The price elasticity of the demand curve is 1.
D. The price elasticity of the demand curve is 2.
Question 4
A firm's demand function is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 5
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's current GDP is 100 billion, and the values of C, I, G, X, and M are 60, 20, 10, 15, and 5 respectively, what is the value of the country's net exports \( X - M \)?
A. 5
B. 10
C. 15
D. 20
Question 6
A country's GDP is 100 billion naira. The government decides to increase the price of a commodity by 20%. If the price elasticity of demand is 0.5, what is the percentage change in the quantity demanded?
A. 10%
B. 20%
C. 15%
D. 5%
Question 7
A country's GNP is ₦120 billion. The country imports goods and services worth ₦20 billion. What will be the effect on the country's GDP?
A. GDP will increase by ₦20 billion
B. GDP will decrease by ₦20 billion
C. GDP will remain cons\tant
D. GDP will increase by ₦10 billion
Question 8
Consider a market with a demand function \( Q = 100 - 2P \) and a supply function \( Q = 2P - 10 \). If the market is in equilibrium, what is the price and quantity?
A. P = ₦20, Q = 30
B. P = ₦30, Q = 40
C. P = ₦40, Q = 50
D. P = ₦50, Q = 60
Question 9
A country's GDP is 100 billion naira. The government decides to increase the price of a commodity by 20%. If the price elasticity of demand is 0.5, what is the percentage change in the quantity demanded?
A. 10%
B. 20%
C. 15%
D. 5%
Question 10
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity?
A. The equilibrium price increases and the equilibrium quantity decreases.
B. The equilibrium price decreases and the equilibrium quantity increases.
C. The equilibrium price remains the same and the equilibrium quantity decreases.
D. The equilibrium price increases and the equilibrium quantity remains the same.
Question 11
A firm's \cost function is given by C(x) = 100 + 2x^2. If the firm's revenue function is R(x) = 100x - 2x^2, find the firm's profit function.
A. R(x) - C(x)
B. C(x) - R(x)
C. R(x) + C(x)
D. C(x) - R(x)
Question 12
A firm's budget constraint is given by 2L + 3K = 100, where L is the labor and K is the capital. If the firm uses 50 units of labor, what is the maximum amount of capital it can use?
A. 20
B. 30
C. 40
D. 50
Question 13
A monopolist faces a demand curve with the following equation: Qd = 100 - 2P. If the monopolist produces 20 units, what is the price elasticity of demand?
A. 0.5
B. 1.0
C. 2.0
D. 5.0
Question 14
A firm is producing a commodity at a point where the marginal \cost of production is equal to the marginal revenue. If the firm increases the price of the commodity, what will be the effect on the quantity supplied?
A. The quantity supplied will increase
B. The quantity supplied will decrease
C. The quantity supplied will remain cons\tant
D. The quantity supplied will increase at a decrea\sing rate
Question 15
A firm is considering investing in a new project with a net present value of ₦100 million. If the firm's \cost of capital is 10%, what is the project's internal rate of return?
A. 12%
B. 15%
C. 18%
D. 20%

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