POST UTME COAL CITY UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by R(x) = 100x - 2x^2, where x is the number of units produced. If the firm produces 20 units, what is its revenue?
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 2
Consider a small open economy with a perfectly competitive market for a particular good. The domestic price of the good is $10, and the world price is $8. The domestic supply curve is given by Qs = 100 - 2P, and the domestic demand curve is given by Qd = 150 + 3P. Assuming that the economy is initially in equilibrium, what is the effect of a 10% depreciation in the value of the domestic currency on the domestic price of the good?
A. The domestic price of the good will increase by 10%
B. The domestic price of the good will decrease by 10%
C. The domestic price of the good will remain unchanged
D. The domestic price of the good will increase by 20%
Question 3
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) and marginal \cost (MC) curves intersect at point E, where MR = MC, and the firm is producing 100 units of output, what is the opportunity \cost of producing one more unit of output?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 4
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 consumption is 100, investment is 50, and government sp\ending is 200, what is the GDP?
A. 350
B. 400
C. 450
D. 500
Question 5
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied. Find the equilibrium price and quantity.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 6
A firm faces a demand curve given by Qd = 100 - 2P and a supply curve given by Qs = 50 + 2P. If the firm produces 30 units of the good, what is the consumer surplus?
A. $100
B. $200
C. $300
D. $400
Question 7
A farmer produces wheat u\sing a production function Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor used, and K is the capital used. The farmer has a budget constraint of 100 units of labor and 50 units of capital. Find the maximum quantity of wheat that can be produced.
A. 20
B. 30
C. 40
D. 50
Question 8
A firm produces a product u\sing a production function Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor used, and K is the capital used. The firm has a budget constraint of 100 units of labor and 50 units of capital. Find the maximum quantity of wheat that can be produced.
A. 20
B. 30
C. 40
D. 50
Question 9
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, what is the marginal product of labor (MPL) when the firm is u\sing these input levels?
A. 1
B. 2
C. 3
D. 4
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital are 4 and 9 respectively, what is the marginal product of labor?
A. 1.5
B. 2.5
C. 3.5
D. 4.5
Question 11
A country's agricultural sector is given by the following equation: Q = 2A^0.5L^0.5. If the country's agricultural input and labor are 4 and 9 respectively, what is the marginal product of labor?
A. 1.5
B. 2.5
C. 3.5
D. 4.5
Question 12
A firm is considering two different production processes, A and B. Process A requires 2 units of labor and 1 unit of capital to produce 10 units of output, while process B requires 1 unit of labor and 2 units of capital to produce 15 units of output. If the firm has 100 units of labor and 50 units of capital, which process should it use?
A. Process A
B. Process B
C. Both processes are equally efficient
D. Neither process is efficient
Question 13
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function C(Q) = 10Q + 100. If the monopolist produces 20 units of the good, what is the consumer surplus?
A. $100
B. $200
C. $300
D. $400
Question 14
A consumer has the following utility function: U(X,Y) = 2X + 3Y. The prices of X and Y are $2 and $3, respectively. If the consumer has a budget of $15, what is the optimal quantity of X and Y to consume?
A. X = 5, Y = 3
B. X = 3, Y = 5
C. X = 4, Y = 4
D. X = 2, Y = 6
Question 15
Consider a small open economy with a trade balance of -100, a current account balance of -50, and a capital account balance of 50. What is the country's overall balance of payments position?
A. Current account deficit of 50
B. Capital account surplus of 50
C. Trade balance deficit of 100
D. Overall balance of payments deficit of 50

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