POST UTME COVENANT UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?
A. 20%
B. 10%
C. 5%
D. 15%
Question 2
A firm's production function is given by Q = 100K^0.5L^0.5, where Q is output, K is capital, and L is labor. If the firm's capital stock increases by 20% and labor remains cons\tant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its revenue?
A. Revenue will increase
B. Revenue will decrease
C. Revenue will remain unchanged
D. Revenue will increase in the short run but decrease in the long run
Question 4
A country's balance of payments is in deficit, indicating that it is importing more goods and services than it is exporting. Which of the following policies would help to reduce the deficit?
A. Devaluing the currency to make exports cheaper
B. Increa\sing government sp\ending to stimulate economic growth
C. Implementing a trade agreement to reduce tariffs
D. Reducing interest rates to encourage borrowing and sp\ending
Question 5
The agricultural sector in Nigeria contributes significantly to the country's GDP. However, the sector faces numerous challenges, including inadequate infrastructure, lack of access to credit, and limited market information. Which of the following policies would be most effective in addres\sing these challenges?
A. Implementing a cash transfer program to support smallholder farmers
B. Providing training and capacity-building programs for farmers
C. Establishing a national agricultural extension service
D. Creating a commodity exchange to improve market access
Question 6
A country's GDP is $100 billion. If the country's population is 50 million and the average GDP per capita is $2,000, what is the country's GDP per capita in terms of the number of people who earn less than $1,500 per year?
A. 25%
B. 30%
C. 35%
D. 40%
Question 7
A consumer has a utility function given by U(X,Y) = 2X + 3Y, where X is the quantity of good X and Y is the quantity of good Y. If the consumer's budget constraint is given by P_X X + P_Y Y = 100, where P_X and P_Y are the prices of goods X and Y, respectively, and P_X = 2P_Y, what is the consumer's optimal bundle of goods X and Y?
A. (20, 30)
B. (30, 20)
C. (40, 10)
D. (10, 40)
Question 8
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of the good, what is the minimum \cost of producing 120 units of the good?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 9
A country's balance of payments account shows a trade deficit of $100 million. If the country's exchange rate is currently 1 USD = 1.5 NGN, what is the equivalent trade deficit in Nigerian naira?
A. ₦150,000,000
B. ₦200,000,000
C. ₦250,000,000
D. ₦300,000,000
Question 10
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 4Q, what is the firm's marginal \cost (MC)?
A. 50 - 2Q
B. 100 - 2Q
C. 200 - 4Q
D. 300 - 6Q
Question 11
A firm's \cost function is given by C = 10L + 20K. If the firm's labor and capital inputs are increased by 10% and 15% respectively, what is the percentage change in total \cost?
A. 10%
B. 15%
C. 20%
D. 25%
Question 12
A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are ₦50 and ₦75 respectively, and the consumer has a budget of ₦300, what is the optimal combination of x and y?
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 4, y = 0
D. x = 0, y = 4
Question 13
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the total \cost of producing 4 units of output.
A. ₦400
B. ₦800
C. ₦1200
D. ₦1600
Question 14
A firm has a \cost function given by C(Q) = 2Q^2 + 5Q + 10, where Q is output. If the firm's revenue function is given by R(Q) = 3Q^2 + 2Q + 5, what is the firm's profit function?
A. Q^2 + 7Q + 15
B. 2Q^2 + 3Q + 5
C. Q^2 + 2Q + 10
D. 3Q^2 + Q + 5
Question 15
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price is ₦50, find the quantity demanded.
A. 20
B. 40
C. 60
D. 80

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