POST UTME CALEB UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Suppose 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 supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied, what is the equilibrium price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 2
A country's import demand function is given by M = 100 - 2P + 3Y, where M is imports, P is price, and Y is income. If the price of imports increases by 10% and income increases by 5%, what is the percentage change in imports?
A. -5%
B. -7%
C. -10%
D. -12%
Question 3
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q + 100. If the firm produces 20 units, what is the total \cost?
A. $1,300
B. $1,400
C. $1,500
D. $1,600
Question 4
The balance of payments (BOP) accounts for a country are divided into three main components: the current account, the capital account, and the financial account. Which of the following is a characteristic of the current account?
A. It records transactions in goods and services
B. It records transactions in capital and financial assets
C. It records transactions in the production of goods and services
D. It records transactions in the distribution of goods and services
Question 5
The Nigerian government has implemented policies to promote agricultural development. Which of the following is a likely consequence of these policies?
A. Increased food production
B. Reduced food prices
C. Increased agricultural exports
D. Decreased agricultural employment
Question 6
A firm's production function is given by Q = 3L^0.5K^0.5. What is the marginal product of labor?
A. \( 3/2 \)L^\( -0.5 \)K^0.5
B. \( 3/2 \)L^0.5K^\( -0.5 \)
C. \( 3/2 \)L^0.5K^0.5
D. \( 3/2 \)L^\( -0.5 \)K^\( -0.5 \)
Question 7
A consumer's indifference curve is steeper than another consumer's indifference curve. What can be concluded about the two consumers?
A. The first consumer is more risk-averse
B. The first consumer is more risk-loving
C. The first consumer has a higher marginal rate of substitution
D. The first consumer has a lower marginal rate of substitution
Question 8
A firm is considering two different production processes. Process A has a higher fixed \cost but a lower variable \cost, while Process B has a lower fixed \cost but a higher variable \cost. Which process will the firm choose if it expects to produce 100 units?
A. Process A
B. Process B
C. Both processes are equally profitable.
D. Neither process is profitable.
Question 9
A monopolistically competitive firm faces a demand curve given by the equation Qd = 100 - 2P. If the firm's marginal revenue curve is given by the equation MR = 200 - 2Q, what is the firm's profit-maximizing output?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 10
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where Q_X is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 4 units of labor and 9 units of capital, how many units of good X will it produce?
A. 6
B. 8
C. 10
D. 12
Question 11
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Question 12
The Gross Domestic Product (GDP) of a country is $100 billion. The Gross National Product (GNP) is $120 billion. What is the net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 13
A firm's \cost function is given by C = 100 + 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in \cost?
A. 10%
B. 12%
C. 15%
D. 18%
Question 14
A firm's \cost function is given by C = 100 + 2Q + 0.01Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 100 units, what is the total \cost?
A. ₦1200
B. ₦1300
C. ₦1400
D. ₦1500
Question 15
A firm's revenue function is given by R = 100L + 200K, where R is revenue, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in revenue?
A. 10%
B. 12%
C. 15%
D. 18%

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