POST UTME WELLSPRING UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C(x) = 100 + 2x, where x is the number of units produced. If the firm produces 20 units, what is the total \cost?
A. ₦220
B. ₦240
C. ₦260
D. ₦280
Question 2
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P and the supply curve is given by Qs = 10 + 3P, find the equilibrium price and quantity.
A. ₦50, 80 units
B. ₦40, 60 units
C. ₦30, 40 units
D. ₦20, 20 units
Question 3
A firm's revenue function is given by the equation R = 2x^2, where R is the revenue and x is the quantity sold. If the firm sells 10 units, what is the revenue?
A. ₦20
B. ₦40
C. ₦60
D. ₦80
Question 4
A consumer has the following utility function: U = 2x + 3y. The prices of x and y are ₦20 and ₦30 respectively. The consumer's budget is ₦100. What is the optimal level of x and y that the consumer should consume?
A. x = 2, y = 1
B. x = 1, y = 2
C. x = 3, y = 0
D. x = 0, y = 3
Question 5
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are ₦1000 and its imports are ₦800, what is the balance of payments?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 6
A country's GDP is ₦100 billion. If the country's population is 20 million, what is the per capita GDP?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 7
A consumer's utility function is given by 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. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 8
A firm is faced with the following production function: Q = 2L^0.5 * K^0.5. If the price of labor (w) is ₦100 and the price of capital (r) is ₦50, and the firm's budget constraint is wL + rK = ₦5000, what is the optimal level of labor (L) and capital (K) that the firm should employ?
A. L = 10, K = 10
B. L = 20, K = 5
C. L = 5, K = 20
D. L = 15, K = 15
Question 9
A firm's production function is given by Q = 2L^0.5 * K^0.5, where Q is the output, L is the labor input, and K is the capital input. If the firm's labor input increases by 20% and the capital input remains cons\tant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the labor is 50 units and the capital is 100 units, what is the output?
A. 20
B. 40
C. 60
D. 80
Question 11
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 12
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment, and G is the government sp\ending. If the consumption is 60% of the GDP, the investment is 20% of the GDP, and the government sp\ending is 10% of the GDP, what is the value of the GDP?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
Question 13
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 5 units of output, what is the total \cost of production?
A. ₦125
B. ₦250
C. ₦375
D. ₦500
Question 14
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm's average total \cost (ATC) curve is U-shaped, what is the likely effect on the firm's profit-maximizing output level if the demand curve shifts to the left?
A. The firm will produce at a higher output level.
B. The firm will produce at a lower output level.
C. The firm's output level will remain unchanged.
D. The firm will experience a decrease in profit.
Question 15
A consumer's utility function is given by the equation U = 2x + 3y, where U is the utility, x is the quantity of good 1, and y is the quantity of good 2. If the consumer has a budget of ₦100 and the prices of good 1 and good 2 are ₦5 and ₦10 respectively, what is the optimal bundle of goods?
A. x = 10, y = 5
B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1

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