POST UTME CHRISTOPHER UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm operating in a perfectly competitive market. 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 2
A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods. If the consumer's income is ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, what is the optimal combination of the two goods?
A. (10, 5)
B. (5, 10)
C. (15, 3)
D. (3, 15)
Question 3
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue (MR) is 80, find the value of x.
A. 10
B. 20
C. 30
D. 40
Question 4
The inflation rate (I) in an economy is given by the equation I = 2 + 0.01Y, where Y is the income. If the income is ₦500 billion, find the inflation rate.
A. 2.5%
B. 3.0%
C. 3.5%
D. 4.0%
Question 5
A firm's demand function is given by \( Q = 100 - 2P \). If the firm's current price is \( P = 20 \), what is the firm's quantity demanded?
A. 60
B. 40
C. 20
D. 10
Question 6
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the two goods are $2 and $3 respectively, and the consumer's income is $15, 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 7
Consider a small open economy with a trade balance of $10 million and a current account surplus of $20 million. If the exchange rate is 1 USD = 100 Naira, what is the value of the trade balance in Naira?
A. ₦1,000,000
B. ₦2,000,000
C. ₦10,000,000
D. ₦20,000,000
Question 8
A firm's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal \cost is $5, what is the firm's optimal price?
A. $5
B. $10
C. $15
D. $20
Question 9
A firm's revenue function is given by R = 2L^2 + 3K, where R is revenue, L is labor, and K is capital. If labor increases by 20% and capital remains cons\tant, what is the percentage change in revenue?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
A firm's supply function is given by Q = 2P + 10, where Q is quantity supplied and P is price. If the firm's marginal \cost is $5, what is the firm's optimal price?
A. $5
B. $10
C. $15
D. $20
Question 11
A country's national income accounts show that its GDP is ₦15 trillion, its GNP is ₦12 trillion, and its net factor income from abroad is ₦1 trillion. What is the country's net domestic product?
A. ₦12 trillion
B. ₦13 trillion
C. ₦14 trillion
D. ₦15 trillion
Question 12
A consumer's indifference curve is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is $15 and the prices of the two goods are $2 and $3 respectively, 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
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains cons\tant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 14
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor, and K is capital. If labor increases by 20% and capital remains cons\tant, what is the percentage change in \cost?
A. 10%
B. 20%
C. 30%
D. 40%
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains cons\tant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%

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