POST UTME CALEB UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's output is 16 units when L = 4 and K = 9, what is the value of the marginal product of labor (MPL) at this point?
A. 2
B. 4
C. 6
D. 8
Question 2
A firm is considering two investment projects. Project A has a higher initial \cost but a higher expected return. Project B has a lower initial \cost but a lower expected return. Which project should the firm choose?
A. Project A
B. Project B
C. Dep\endence on other factors
D. Both projects are equally good
Question 3
A firm is producing a good u\sing a production function of the form Q = 2L^0.5K^0.5. 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, what is the likely outcome for the firm's profit?
A. The firm will experience a supernormal profit.
B. The firm will experience a normal profit.
C. The firm will experience a loss.
D. The firm will experience a loss, but the loss will be minimized.
Question 4
A country's balance of payments (BOP) accounts can be classified into three main categories: current account, capital account, and financial account. Which of the following is NOT a component of the current account?
A. Exports
B. Imports
C. Foreign Direct Investment (FDI)
D. Unilateral Transfers
Question 5
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 ₦3 respectively, determine the optimal quantities of x and y.
A. x = 10, y = 10
B. x = 15, y = 5
C. x = 20, y = 0
D. x = 0, y = 20
Question 6
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. P = 40, Q = 30
B. P = 50, Q = 20
C. P = 60, Q = 10
D. P = 70, Q = 5
Question 7
A firm is operating under cons\tant returns to scale. If it increases its output by 10%, what will be the percentage change in its total \cost?
A. 0%
B. 5%
C. 10%
D. 15%
Question 8
A consumer's utility function is given by U = 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 9
A country's inflation rate is given by the formula: inflation rate = \( CPI - 100 \) / 100, where CPI is the consumer price index. If the CPI is 120, what is the inflation rate?
A. 20%
B. 25%
C. 30%
D. 35%
Question 10
A government wants to implement a tax on a firm's output. If the firm's supply curve is given by P = 10 + 2Q and the government wants to collect a tax of 5 units, what is the new supply curve?
A. P = 15 + 2Q
B. P = 20 + 2Q
C. P = 25 + 2Q
D. P = 30 + 2Q
Question 11
A firm is operating under cons\tant returns to scale. If it increases its output by 10%, what will be the percentage change in its total \cost?
A. 10%
B. 5%
C. 0%
D. 15%
Question 12
A firm is operating under decrea\sing returns to scale. If it increases its output by 10%, what will be the percentage change in its total \cost?
A. 0%
B. 5%
C. 10%
D. 15%
Question 13
The demand for a commodity is said to be elastic if the percentage change in the quantity demanded is greater than the percentage change in the price. Which of the following is a characteristic of an elastic demand?
A. The demand curve is steeper than the supply curve
B. The demand curve is flatter than the supply curve
C. The demand curve is vertical
D. The demand curve is horizontal
Question 14
A country's economic growth rate is given by the following equation: GDP = C + I + G + \( X - M \). If the country's consumption is ₦100, investment is ₦20, government exp\enditure is ₦30, exports are ₦50, and imports are ₦20, determine the country's economic growth rate.
A. 10%
B. 15%
C. 20%
D. 25%
Question 15
A government imposes a tax of ₦10 per unit on a good. If the pre-tax price of the good is ₦50, what will be the new price of the good?
A. ₦40
B. ₦50
C. ₦60
D. ₦70

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