POST UTME CALEB UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by P = 100 - 2q and has a \cost function C(q) = 50q + 100. Find the monopolist's profit-maximizing quantity and price.
A. q = 25, P = 50
B. q = 30, P = 40
C. q = 35, P = 30
D. q = 40, P = 20
Question 2
A country's government budget constraint is given by B = T + P, where B is the budget, T is the tax revenue, and P is the public exp\enditure. If the government budget is ₦100 billion, tax revenue is ₦50 billion, and public exp\enditure is ₦30 billion, what is the deficit?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 3
A consumer's indifference curve is given by U(x, y) = 2x + 3y, where x and y are the consumer's consumption of good x and good y, respectively. If the consumer's current consumption bundle is (x, y) = (10, 5), calculate the consumer's marginal rate of substitution (MRS).
A. 1
B. 2
C. 3
D. 4
Question 4
A firm operating in a perfectly competitive market produces a good with the following \cost and revenue functions: C(q) = 10q + 100 and R(q) = 20q. Find the profit-maximizing quantity and price of the good.
A. q = 5, P = 30
B. q = 10, P = 20
C. q = 15, P = 15
D. q = 20, P = 10
Question 5
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦100,000, what is the firm's optimal level of output?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 6
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue function is given by MR = 200 - 2Q, what is the firm's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 7
A consumer's budget constraint is given by P_x x + P_y y = I, where P_x and P_y are the prices of good x and good y, respectively, and I is the consumer's income. If the consumer's income is I = 100, and the prices of good x and good y are P_x = 2 and P_y = 3, respectively, calculate the consumer's optimal consumption bundle (x, y).
A. x = 20, y = 10
B. x = 30, y = 15
C. x = 40, y = 20
D. x = 50, y = 25
Question 8
A firm's production function is given by Q = 2L^0.5 + 3K^0.5, where L is labor and K is capital. If the firm's current labor and capital inputs are L = 16 and K = 9, calculate the firm's marginal product of labor (MPL).
A. 2
B. 4
C. 6
D. 8
Question 9
The Marshall-Lerner condition states that a country will experience an improvement in its balance of payments if the sum of the percentage changes in its export and import prices exceeds a certain threshold. What is the name of this threshold?
A. The Marshall-Lerner condition
B. The J-curve effect
C. The balance of payments equilibrium
D. The trade deficit threshold
Question 10
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦5 trillion, and if the values of C, I, G, X, and M are ₦1.5 trillion, ₦500 billion, ₦1 trillion, ₦1.2 trillion, and ₦800 billion respectively, what is the value of the country's net exports?
A. ₦200 billion
B. ₦300 billion
C. ₦400 billion
D. ₦500 billion
Question 11
A company produces two products, A and B. The production \costs of the two products are given by the equations C_A = 100 + 2x and C_B = 150 + 3x, where x is the number of units produced. If the company produces 50 units of product A and 30 units of product B, what is the total \cost of production?
A. ₦10,500
B. ₦11,000
C. ₦11,500
D. ₦12,000
Question 12
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦50 and ₦75 respectively, and if the consumer's budget constraint is given by 50x + 75y = ₦150, what is the consumer's optimal bundle of goods?
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 4, y = 1
D. x = 1, y = 4
Question 13
The supply of a commodity is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the demand for the commodity is given by the equation Qd = 100 - 2P, what is the equilibrium price and quantity?
A. P = 25, Q = 75
B. P = 30, Q = 80
C. P = 35, Q = 85
D. P = 40, Q = 90
Question 14
A firm's demand for labor is given by the equation L = 100 - 2P_L, where P_L is the wage rate. If the wage rate is ₦50 per hour, what is the firm's demand for labor?
A. 50 hours
B. 75 hours
C. 100 hours
D. 125 hours
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, find the marginal product of labor and the marginal product of capital.
A. MP_L = 0.1875, MP_K = 0.25
B. MP_L = 0.25, MP_K = 0.1875
C. MP_L = 0.1875, MP_K = 0.125
D. MP_L = 0.125, MP_K = 0.1875

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