POST UTME CALEB UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of production theory implies that the firm's goal is to maximize profits by producing the optimal quantity of goods and services. Which of the following is a characteristic of a perfectly competitive firm?
A. The firm produces the optimal quantity of goods and services.
B. The firm produces the maximum quantity of goods and services.
C. The firm produces the minimum quantity of goods and services.
D. The firm produces the quantity of goods and services that maximizes profits.
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is ₦10,000, what is the optimal level of labor and capital?
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 100
D. L = 100, K = 200
Question 3
A government's budget constraint is given by G = 100 + 0.5T, where G is government exp\enditure and T is tax revenue. If the government wants to sp\end ₦150, find the required tax revenue.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 4
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. What is the marginal revenue when x = 20?
A. 980
B. 1000
C. 1020
D. 1040
Question 5
A firm's \cost function is given by C = 2L + 3K, where C is the total \cost, L is the number of labor units, and K is the number of capital units. If the firm hires 2 labor units and 3 capital units, what is the total \cost?
A. 10
B. 12
C. 15
D. 20
Question 6
A monopolist faces a demand curve with the following equation: \( Q = 100 - 2P \). If the monopolist's marginal \cost is \( MC = 10 \), what is the profit-maximizing price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm has 100 units of labor and 200 units of capital, find the maximum output.
A. 100 units
B. 200 units
C. 400 units
D. 800 units
Question 8
A firm's production function is given by \( Q = 2L^0.5K^0.5 \). If the firm's input prices are \( w = 10 \) and \( r = 20 \), what is the profit-maximizing level of labor?
A. 5
B. 10
C. 15
D. 20
Question 9
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the monopolist produces 20 units, what is the consumer surplus?
A. ₦500
B. ₦750
C. ₦1000
D. ₦1250
Question 10
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 4x + 2y = 12, and the prices of the two goods are $2 and $3 respectively, what is the consumer's optimal bundle of goods?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 11
A firm produces two goods, A and B. The production of good A requires 2 units of labor and 1 unit of capital, while the production of good B requires 1 unit of labor and 2 units of capital. If the firm has 10 units of labor and 8 units of capital, and the prices of goods A and B are ₦100 and ₦120 respectively, what is the optimal production plan?
A. Produce 5 units of good A and 3 units of good B
B. Produce 3 units of good A and 5 units of good B
C. Produce 4 units of good A and 4 units of good B
D. Produce 6 units of good A and 2 units of good B
Question 12
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment, and G is the government sp\ending. If the country's consumption is $100, investment is $50, and government sp\ending is $20, what is the GDP?
A. 170
B. 180
C. 190
D. 200
Question 13
The concept of economic planning and development implies that the government plays a crucial role in guiding the economy towards sustainable development. Which of the following is a characteristic of a planned economy?
A. The government plays a minimal role in guiding the economy.
B. The government plays a crucial role in guiding the economy.
C. The economy is characterized by a high level of government intervention.
D. The economy is characterized by a low level of government intervention.
Question 14
The concept of returns to scale in production theory implies that as the input factors increase, the output will increase at a rate that is proportional to the increase in input factors. Which of the following is a characteristic of increa\sing returns to scale?
A. The marginal product of labor increases as the number of workers increases.
B. The average product of capital decreases as the amount of capital increases.
C. The marginal product of capital increases as the amount of capital increases.
D. The average product of labor decreases as the number of workers increases.
Question 15
A firm's revenue function is given by R(Q) = 100Q - 2Q^2. Find the marginal revenue function.
A. MR = 100 - 4Q
B. MR = 100 - 2Q
C. MR = 100 + 2Q
D. MR = 100 + 4Q

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