POST UTME COVENANT UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government imposes a tax of ₦5 on a commodity. If the price of the commodity is ₦20, and the quantity demanded is 10 units, what is the tax revenue?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 2
A government imposes a tax on a commodity, which increases the price of the commodity by 10%. If the original price of the commodity was 100, what is the new price?
A. 90
B. 100
C. 110
D. 120
Question 3
A country's GNP is $120 billion, its net factor income from abroad is $10 billion, and its GDP is $110 billion. What is its national income?
A. $130 billion
B. $140 billion
C. $150 billion
D. $160 billion
Question 4
A firm has a total revenue function given by \( TR = 2Q^2 + 10Q \) and a total \cost function given by \( TC = Q^2 + 5Q \). Find the profit-maximizing quantity and price.
A. \( Q = 5, P = 15 \)
B. \( Q = 10, P = 20 \)
C. \( Q = 15, P = 25 \)
D. \( Q = 20, P = 30 \)
Question 5
A firm is producing a good with a total revenue of ₦1000 and a total \cost of ₦800. The profit is
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 6
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $30 billion. What is its GDP at market price?
A. $120 billion
B. $130 billion
C. $140 billion
D. $150 billion
Question 7
A firm's average revenue is given by the equation AR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its average revenue?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 8
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm increases labor from 4 to 9 units, and capital from 9 to 16 units, what is the percentage change in output?
A. 25%
B. 30%
C. 35%
D. 40%
Question 9
At a price of ₦200, the quantity demanded of a commodity is 100 units. At a price of ₦300, the quantity demanded is 50 units. U\sing the midpoint formula, calculate the equilibrium price and quantity. Assume the market is in equilibrium.
A. ₦250, 75 units
B. ₦275, 62.5 units
C. ₦225, 87.5 units
D. ₦275, 75 units
Question 10
A firm's \cost function is given by the equation C(x) = 10x + 20x^2. If the firm produces 10 units, what is the total \cost?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 11
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. ₦1200
B. ₦1800
C. ₦2000
D. ₦2200
Question 12
A firm's \cost function is given by the equation C = 2Q + 100, where C is the total \cost and Q is the quantity produced. If the firm produces 50 units, what is the total \cost?
A. 200
B. 250
C. 300
D. 350
Question 13
A perfectly competitive market has a supply curve given by Qs = 100 - 2P and a demand curve given by Qd = 200 - P. Find the equilibrium price and quantity.
A. P = 50, Q = 100
B. P = 75, Q = 125
C. P = 100, Q = 150
D. P = 125, Q = 175
Question 14
Suppose the demand for a commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the commodity is given by the equation Qs = 2P - 50, where Qs is the quantity supplied. If the equilibrium price is 25, what is the equilibrium quantity?
A. 50
B. 75
C. 100
D. 125
Question 15
A firm's total revenue is given by the equation TR = 20x + 30x^2, where x is the number of units sold. If the firm sells 10 units, what is the total revenue?
A. ₦500
B. ₦550
C. ₦600
D. ₦650

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