POST UTME AL-HIKMAH UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is operating in a monopoly market with a demand curve given by \( Q = 100 - 2P \). If the firm's marginal \cost is ₦10, what is the firm's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 2
A government budget has a total exp\enditure of 50 billion naira and a total revenue of 40 billion naira. What is the budget deficit?
A. 5 billion naira
B. 10 billion naira
C. 15 billion naira
D. 20 billion naira
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 100 units, and the price of labor is ₦100 per unit, while the price of capital is ₦200 per unit, what is the optimal combination of labor and capital?
A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 100, K = 50
Question 4
A government is considering implementing a policy to reduce income inequality. Which of the following is a potential tool?
A. Progressive taxation
B. Redistributive taxation
C. Social welfare programs
D. Trade policies
Question 5
A firm is considering the production of a new product. The firm has a fixed \cost of ₦500,000 and a variable \cost of ₦20 per unit. If the firm produces 50,000 units of the product, what is the total \cost of production?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 6
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is ₦1,000,000 and the value of imports is ₦800,000, what is the balance of payments?
A. ₦200,000
B. ₦100,000
C. ₦300,000
D. ₦400,000
Question 7
Determine the value of the elasticity of demand for a product whose price elasticity of demand is 0.8 and whose quantity demanded decreases by 15% when the price increases by 10%.
A. 0.6
B. 0.8
C. 1.2
D. 1.5
Question 8
A firm is considering investing in a new project. The project has a net present value (NPV) of ₦1,500,000 and a required rate of return of 10%. What is the present value of the project's expected cash flows?
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,100,000
D. ₦2,400,000
Question 9
The government of Nigeria has implemented a policy to increase the production of rice through the use of irrigation. However, the policy has led to a decrease in the production of other crops such as maize and sorghum. What is the likely effect of this policy on the overall agricultural sector?
A. Increase in agricultural output
B. Decrease in agricultural output
C. No effect on agricultural output
D. Increase in agricultural output, but with a decrease in the production of other crops
Question 10
Consider a firm that produces two goods, A and B. The production function for good A is given by Q_A = 2L_A^\( 1/2 \)K_A^\( 1/2 \), and the production function for good B is given by Q_B = 2L_B^\( 1/2 \)K_B^\( 1/2 \). If the firm's capital (K) is 4 units, and the firm's labor (L) is 8 units, what is the optimal allocation of labor between good A and good B?
A. L_A = 4, L_B = 4
B. L_A = 2, L_B = 6
C. L_A = 6, L_B = 2
D. L_A = 8, L_B = 0
Question 11
A firm is considering two different production processes for its product. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the firm produces 10,000 units of the product, what is the total \cost of production for each process?
A. Process A: ₦1,500,000, Process B: ₦1,200,000
B. Process A: ₦1,200,000, Process B: ₦1,500,000
C. Process A: ₦1,000,000, Process B: ₦1,000,000
D. Process A: ₦1,500,000, Process B: ₦1,500,000
Question 12
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦50, what is the optimal quantity to produce?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 13
A firm is operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price falls from ₦100 to ₦90, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 14
A firm is operating in a perfectly competitive market with a production function given by \( Q = 2L^{1/2}K^{1/2} \). If the firm's output is 100 units and the wage rate is ₦10 per unit of labor, what is the firm's optimal capital?
A. 100
B. 200
C. 300
D. 400
Question 15
The supply of a product is given by the equation Q = 2P + 100, where Q is the quantity supplied and P is the price. If the price is ₦50, what is the quantity supplied?
A. 150
B. 200
C. 250
D. 300

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