POST UTME AL-HIKMAH UNIVERSITY 2020 Economics | Objective

Are you preparing for POST UTME AL-HIKMAH UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5, what is the optimal level of labor (L) and capital (K) that the firm should employ?
A. \( L = 100, K = 100 \)
B. \( L = 25, K = 25 \)
Correct C. \( L = 50, K = 50 \)
D. \( L = 200, K = 200 \)

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal level of x and y that the consumer should consume?
A. \( x = 2, y = 2 \)
Correct B. \( x = 3, y = 1 \)
C. \( x = 4, y = 0 \)
D. \( x = 1, y = 3 \)

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
Consider a country with a GDP of $100 billion and a GNP of $120 billion. If the country has a net factor income from abroad of $10 billion, what is the country's national income?
A. $110 billion
B. $120 billion
Correct C. $130 billion
D. $140 billion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A government imposes a tax of 10% on a good. If the price of the good is $100, what is the new price of the good after the tax is imposed?
A. $90
B. $100
Correct C. $110
D. $120

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
Consider a firm with a production function given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5, what is the optimal level of labor (L) and capital (K) that the firm should employ?
A. \( L = 100, K = 100 \)
B. \( L = 25, K = 25 \)
Correct C. \( L = 50, K = 50 \)
D. \( L = 200, K = 200 \)

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A firm's total revenue is given by the equation \( TR = 100x - 2x^2 \), where ( x ) is the number of units sold. If the firm's marginal revenue is \( MR = 100 - 4x \), find the value of ( x ) at which the firm's marginal revenue equals its average revenue.
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
The demand for a product is given by the equation \( Q = 100 - 2P \), where ( Q ) is the quantity demanded and ( P ) is the price. If the supply of the product is given by the equation \( Q = 50 + 3P \), find the equilibrium price and quantity.
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A firm's \cost function is given by the equation ( C(x) = 100 + 2x + 0.01x^2 ), where ( x ) is the number of units produced. If the firm's revenue function is given by the equation ( R(x) = 200x - 0.05x^2 ), find the profit-maximizing level of production.
A. 100
B. 200
Correct C. 300
D. 400

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
The demand for a product is given by the equation \( Q = 100 - 2P \), where ( Q ) is the quantity demanded and ( P ) is the price. If the supply of the product is given by the equation \( Q = 50 + 3P \), find the elasticity of demand at the equilibrium price.
A. 0.5
Correct B. 1
C. 2
D. 3

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A firm's production function is given by the equation \( Q = 100 + 2x + 0.01x^2 \), where ( x ) is the number of units produced. If the firm's \cost function is given by the equation ( C(x) = 100 + 2x + 0.01x^2 ), find the marginal product of labor.
A. 2
Correct B. 4
C. 6
D. 8

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase its output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (20, 10)
Correct B. (15, 15)
C. (10, 20)
D. (5, 25)

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labor and H is capital. If the firm wants to minimize its \cost while producing 100 units of output, what is the optimal combination of labor and capital?
Correct A. (50, 25)
B. (25, 50)
C. (10, 90)
D. (90, 10)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods. If the consumer's utility function is given by U = 2x + 3y, what is the consumer's optimal bundle of goods?
A. (20, 10)
Correct B. (15, 15)
C. (10, 20)
D. (5, 25)

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase its output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases labor from 4 units to 9 units, while keeping capital cons\tant at 16 units, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A consumer's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price of the good increases from ₦50 to ₦75, what is the percentage change in quantity demanded?
A. -20%
Correct B. -30%
C. -40%
D. -50%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor and K is capital. If the firm increases labor from 4 units to 9 units, while keeping capital cons\tant at 16 units, what is the percentage change in \cost?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A consumer's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price of the good increases from ₦50 to ₦75, what is the elasticity of demand?
A. Inelastic
B. Unit Elastic
Correct C. Elastic
D. Perfectly Elastic

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases capital from 16 units to 25 units, while keeping labor cons\tant at 4 units, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
The following table shows the balance of payments for a country in a given year. What is the value of the current account balance?
A. ₦100 billion
B. ₦200 billion
Correct C. ₦300 billion
D. ₦400 billion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A firm has a production function given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, what is the \cost-minimizing level of labor?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are ₦5 and ₦10 respectively, and the consumer has a budget of ₦50, what is the optimal consumption bundle?
A. x = 5, y = 3
Correct B. x = 10, y = 5
C. x = 15, y = 10
D. x = 20, y = 15

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A firm has a \cost function given by C = 2L + 3K. If the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, what is the \cost-minimizing level of capital?
A. 10 units
B. 20 units
Correct C. 30 units
D. 40 units

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A country has a GDP of ₦100 billion and a GNP of ₦120 billion. What is the value of the net factor income from abroad?
A. ₦20 billion
Correct B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support