POST UTME COAL CITY UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's average total \cost curve intersects its marginal \cost curve at point E, where MC = ATC. If the firm is currently producing at point D, where MC > ATC, what can be concluded about the firm's short-run production decision?
A. The firm should increase production to point E.
B. The firm should decrease production to point E.
C. The firm should maintain production at point D.
D. The firm should shut down production.
Question 2
A firm is facing a market structure with a demand curve given by Q = 100 - 2P and a marginal \cost curve given by MC = 10. The firm's revenue is given by R = 50Q. What is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 3
A consumer has a utility function given by U = 2x + 3y. The prices of x and y are $2 and $3 respectively. The consumer's income is $10. What is the optimal bundle of x and y?
A. x = 2, y = 1
B. x = 3, y = 2
C. x = 4, y = 3
D. x = 5, y = 4
Question 4
A firm faces a production function given by Q = 100K^0.5L^0.5. If the price of K is ₦100 per unit and the price of L is ₦50 per unit, and if the firm produces 100 units of output, what is the opportunity \cost of one more unit of output?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the firm's current output?
A. 6
B. 8
C. 10
D. 12
Question 6
A country's GDP is given by the equation Y = C + I + G + \( X - M \). What is the name of this equation?
A. GDP Equation
B. National Income Equation
C. Balance of Payments Equation
D. Fiscal Policy Equation
Question 7
A consumer's utility function is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = ₦100, find the optimal quantities of x and y.
A. x = 20, y = 10
B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25
Question 8
A consumer's indifference curve is steeper than another consumer's indifference curve. What does this imply about the two consumers' preferences?
A. The first consumer is more risk-averse than the second consumer.
B. The first consumer is more risk-seeking than the second consumer.
C. The first consumer prefers a more diverse basket of goods than the second consumer.
D. The first consumer prefers a less diverse basket of goods than the second consumer.
Question 9
A country's GDP is ₦1,000,000,000. If the country's population is 20 million, what is the per capita income?
A. ₦50
B. ₦100
C. ₦200
D. ₦500
Question 10
A country's GDP is $100 billion, and its GNP is $120 billion. What is the country's net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 11
A firm's demand curve is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's revenue function is given by R(P) = P\( 100 - 2P \), find the price at which the firm's revenue is maximized.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 12
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are ₦10 and ₦20 respectively, and the consumer has a budget of ₦100, determine the optimal bundle of x and y.
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 13
The government of a country imposes a tax on imports to raise revenue. This tax is an example of a _______ tax.
A. Proportional
B. Progressive
C. Regressive
D. Lump sum
Question 14
A perfectly competitive market has a demand function given by p = 100 - 2q. What is the price when q = 20?
A. 60
B. 80
C. 100
D. 120
Question 15
A monopolist is facing a demand curve with the following equation: Q = 100 - 2P. The monopolist's marginal \cost (MC) is ₦50. What is the monopolist's profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80

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