POST UTME CHRISTOPHER UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a market demand curve given by Q = 100 - 2P and a marginal revenue function MR = 200 - 2Q. Find the profit-maximizing price and quantity.
A. P = 50, Q = 25
B. P = 75, Q = 12.5
C. P = 100, Q = 0
D. P = 0, Q = 100
Question 2
A country's elasticity of demand for a particular good is given by the following equation: E = \( ΔQ / ΔP \) × \( P / Q \). If the demand for the good is Q = 100 - 2P and the price elasticity of demand is E = 0.5, find the new price and quantity of output after a 10% increase in price.
A. P = 45, Q = 85
B. P = 50, Q = 90
C. P = 55, Q = 95
D. P = 60, Q = 100
Question 3
In a perfectly competitive market, the supply curve is a straight line. If the price elasticity of demand is 2, and the demand curve is given by Qd = 100 - 2P, what is the price elasticity of supply?
A. 1
B. 2
C. 3
D. 4
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output increases by 20% when labor increases by 10% and capital increases by 15%, what is the value of the elasticity of output with respect to labor?
A. 0.5
B. 1
C. 1.5
D. 2
Question 5
A firm is considering the introduction of a new product. The demand for the product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The firm's \cost function is given by C = 50 + 5Q, where C is the total \cost and Q is the quantity produced. What is the profit-maximizing price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A government imposes a tax on a firm's output. The firm's supply function is given by Q = 100 + 2P. If the tax rate is 10% of the output price, what is the new supply function?
A. Q = 100 + 2.2P
B. Q = 100 + 2.1P
C. Q = 100 + 2P
D. Q = 100 + 2.3P
Question 7
A firm is operating in a perfectly competitive market with a \cost function given by C(q) = 2q^2 + 10q. If the market price is P = 20, find the profit-maximizing quantity of output.
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 8
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (10,20)
B. (20,10)
C. (15,15)
D. (25,5)
Question 9
A firm is operating in a monopoly market with a demand function given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10, find the profit-maximizing price and quantity of output.
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 10
The balance of payments (BOP) accounts for a country 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
D. Remit\tances
Question 11
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy involves a 10% tax on all agricultural produce sold in the country. If the total value of agricultural produce sold in the country is ₦100 billion, what is the total tax revenue generated from this policy?
A. ₦10,000,000,000
B. ₦20,000,000,000
C. ₦30,000,000,000
D. ₦40,000,000,000
Question 12
A central bank increases the reserve requirement for commercial banks from 10% to 15%. What will be the effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 13
A monopolist faces a demand curve given by Qd = 100 - 2P. If the monopolist's marginal \cost curve is MC = 10, what is the monopolist's optimal price and quantity?
A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20
Question 14
A government is considering a policy to reduce inflation. The government's objective function is given by U(C, P) = 2C + 3P. The constraint is given by C + P = 10. Find the government's optimal policy.
A. C = 5, P = 5
B. C = 10, P = 0
C. C = 0, P = 10
D. C = 5, P = 5
Question 15
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q + 100. If the firm produces 20 units of output, what is the total \cost?
A. ₦500
B. ₦600
C. ₦700
D. ₦800

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