POST UTME AL-HIKMAH UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total revenue (TR) is given by TR = 100Q - 2Q^2. If the firm's total \cost (TC) is ₦500 + ₦50Q, calculate the profit-maximizing output level.
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 2
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦20, calculate the firm's current elasticity of demand.
A. 0.5
B. 1
C. 2
D. 3
Question 3
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. If the firm has 100 units of labor and 50 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 3
Question 4
A firm's demand curve is given by P = 100 - 2Q. If the firm's marginal revenue (MR) is ₦50, calculate the price elasticity of demand.
A. 0.5
B. 1
C. 2
D. 5
Question 5
A consumer's indifference curve is represented 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, what is the consumer's optimal bundle?
A. x = 60, y = 40
B. x = 40, y = 60
C. x = 50, y = 50
D. x = 70, y = 30
Question 6
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it currently uses 4 units of labor and 9 units of capital, calculate the firm's current total \cost.
A. ₦480
B. ₦720
C. ₦960
D. ₦1200
Question 7
The demand curve for a good is downward-sloping because
A. As the price of the good increases, consumers are willing to buy more of it
B. As the price of the good increases, consumers are willing to buy less of it
C. As the price of the good decreases, consumers are willing to buy more of it
D. As the price of the good decreases, consumers are willing to buy less of it
Question 8
The concept of diminishing marginal utility is related to the law of?
A. Diminishing returns to scale
B. Increa\sing opportunity \cost
C. Diminishing marginal utility
D. Law of supply
Question 9
A government is considering a tax on a particular good. The supply curve of the good is given by Q = 100 + 2P, and the demand curve is given by Q = 150 - 3P. If the government imposes a tax of ₦10 on the good, calculate the new equilibrium price and quantity.
A. ₦25, Q = 125
B. ₦30, Q = 100
C. ₦35, Q = 75
D. ₦40, Q = 50
Question 10
A firm operating in a perfectly competitive market is characterized by which of the following?
A. A \single price maker
B. A large number of firms producing a homogeneous product
C. A firm with a significant market share
D. A firm that can influence market price
Question 11
A monopolistically competitive firm is characterized by?
A. A \single price maker
B. A large number of firms producing a homogeneous product
C. A firm with a significant market share
D. A firm that can influence market price
Question 12
A country has a monetary policy of increa\sing the money supply by 5% per annum. If the initial money supply is 100 billion, what is the money supply after 5 years?
A. 125 billion
B. 130 billion
C. 135 billion
D. 140 billion
Question 13
The government's budget constraint is given by?
A. G = T
B. G = T + I
C. G = T - I
D. G = T + I + X
Question 14
A firm's opportunity \cost of producing one more unit of a good is the
A. Price of the good
B. Price of the good minus the firm's fixed \costs
C. Price of the good minus the firm's variable \costs
D. Price of the good plus the firm's fixed \costs
Question 15
A firm's market structure is characterized by a demand function P = 100 - 2Q. If the firm's marginal \cost is ₦20, what is the firm's optimal output?
A. 20
B. 30
C. 40
D. 50

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