POST UTME COAL CITY UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of diminishing marginal utility is closely related to the law of increa\sing opportunity \cost. Explain how this relationship affects the production of agricultural commodities in Nigeria.
A. The law of increa\sing opportunity \cost leads to a decrease in the production of agricultural commodities in Nigeria.
B. The concept of diminishing marginal utility causes an increase in the production of agricultural commodities in Nigeria.
C. The relationship between the two concepts leads to a shift in the production of agricultural commodities in Nigeria towards more labor-intensive methods.
D. The law of increa\sing opportunity \cost and the concept of diminishing marginal utility have no impact on the production of agricultural commodities in Nigeria.
Question 2
A firm's revenue function is given by R(x) = 100x - 2x^2. Which of the following is the firm's marginal revenue function?
A. ( MR(x) = 100 - 4x )
B. ( MR(x) = 100 + 4x )
C. ( MR(x) = 100 - 2x )
D. ( MR(x) = 100 + 2x )
Question 3
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
A. (200, 100)
B. (150, 150)
C. (100, 200)
D. (50, 250)
Question 4
A firm's \cost function is given by C = 2L + 3K. If the firm's current input levels are L = 4 and K = 9, what is the firm's total \cost?
A. ₦24
B. ₦30
C. ₦36
D. ₦42
Question 5
The demand for a good is represented by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. What is the price elasticity of demand at a price of ₦50?
A. 0.5
B. 1
C. 2
D. 5
Question 6
A monopolistically competitive firm faces a downward-sloping demand curve. Which of the following is a characteristic of this firm's \cost function?
A. The firm's average \cost curve is U-shaped.
B. The firm's marginal \cost curve is downward-sloping.
C. The firm's average revenue curve is downward-sloping.
D. The firm's marginal \cost curve is upward-sloping.
Question 7
A firm's \cost function is given by ( C(q) = 100 + 2q + 0.5q^2 ). Find the firm's average \cost function.
A. ( AC(q) = 100 + 2q + 0.5q^2 )
B. ( AC(q) = 100 + q + 0.5q^2 )
C. ( AC(q) = 100 + 2q + q^2 )
D. ( AC(q) = 100 + q + q^2 )
Question 8
A country's balance of payments is given by BOP = X - M. If the country's current account balance is X = ₦100 and the capital account balance is M = ₦50, what is the country's balance of payments?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 9
A farmer in Nigeria has 100 hectares of land to cultivate maize. If the yield per hectare is 2.5 tons, what is the total yield?
A. 250 tons
B. 500 tons
C. 750 tons
D. 1000 tons
Question 10
A country's import demand function is given by \( M = 100 - 2P \), where M is the quantity of imports and P is the price of imports. If the price of imports is ₦50, find the quantity of imports.
A. 200
B. 250
C. 300
D. 350
Question 11
Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects the average revenue (AR) curve at a point where the firm is producing at its optimal output level, what is the implication for the firm's profit-maximizing output level?
A. The firm will produce at its minimum point on the ATC curve.
B. The firm will produce at its maximum point on the ATC curve.
C. The firm will produce at its optimal output level, where ATC = AR.
D. The firm will produce at its minimum point on the AR curve.
Question 12
A government imposes a tax on a particular good. Which of the following is a consequence of this tax?
A. The tax revenue is used to finance government exp\enditure.
B. The tax reduces the supply of the good.
C. The tax increases the demand for the good.
D. The tax has no effect on the market equilibrium.
Question 13
A country's inflation rate is 5% per annum, and its nominal interest rate is 10% per annum. What is the real interest rate?
A. 5%
B. 6%
C. 7%
D. 8%
Question 14
The Central Bank of Nigeria (CBN) has implemented a monetary policy aimed at reducing inflation. The policy involves a reduction in the money supply by 10%. If the initial money supply was ₦100 billion, what is the new money supply?
A. ₦90 billion
B. ₦80 billion
C. ₦70 billion
D. ₦60 billion
Question 15
A firm in Nigeria is considering the production of two goods, X and Y. The production function for good X is given by Q_X = 2L + 3K, where L is labor and K is capital. The production function for good Y is given by Q_Y = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the opportunity \cost of producing one more unit of good X?
A. The opportunity \cost of producing one more unit of good X is 0.5 units of good Y.
B. The opportunity \cost of producing one more unit of good X is 1 unit of good Y.
C. The opportunity \cost of producing one more unit of good X is 2 units of good Y.
D. The opportunity \cost of producing one more unit of good X is 3 units of good Y.

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