POST UTME DELSU 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of taxation is a fundamental principle in public finance. Which of the following statements best describes the concept of taxation?
A. The compulsory payment of money by individuals or bu\sinesses to the government
B. The payment of money by individuals or bu\sinesses to the government voluntarily
C. The payment of money by individuals or bu\sinesses to the government in exchange for a service
D. The payment of money by individuals or bu\sinesses to the government in exchange for a good
Question 2
A firm's \cost function is given by C = 2Q + 3, where C is the total \cost and Q is the quantity produced. If the firm's revenue function is R = 4Q, find the profit-maximizing quantity.
A. 2
B. 4
C. 6
D. 8
Question 3
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 5 units of output, what is the total \cost of production?
A. ₦35
B. ₦40
C. ₦45
D. ₦50
Question 4
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 ATC curve is downward sloping, what can be concluded about the firm's production level?
A. The firm is producing at a level where the marginal \cost (MC) is equal to the marginal revenue (MR).
B. The firm is producing at a level where the MC is greater than the MR.
C. The firm is producing at a level where the MC is less than the MR.
D. The firm is producing at a level where the MC is equal to the MR, but the ATC curve is upward sloping.
Question 5
A central bank has a monetary policy goal of reducing inflation from 5% to 3% within two years. If the current money supply is ₦100 billion and the velocity of money is 2, determine the required money supply growth rate.
A. 10%
B. 15%
C. 20%
D. 25%
Question 6
The elasticity of demand for a commodity is measured by the percentage change in the quantity demanded in response to a 1% change in the price of the commodity. If the demand for a commodity is elastic, what happens to the total revenue of the producer when the price of the commodity increases by 10%?
A. Total revenue increases by 10%
B. Total revenue decreases by 10%
C. Total revenue remains the same
D. Total revenue increases by 20%
Question 7
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue (MR) is 80, find the value of x.
A. 20
B. 30
C. 40
D. 50
Question 8
The demand function for a commodity is given by p = 100 - 2x, where p is the price and x is the quantity demanded. If the supply function is given by p = 50 + 3x, find the elasticity of demand at x = 20.
A. 0.5
B. 1
C. 2
D. 3
Question 9
A firm is a pure monopolist with a demand function given by p = 100 - 2x, where p is the price and x is the quantity demanded. If the firm's marginal \cost function is given by MC(x) = 2x, find the profit-maximizing quantity.
A. 20
B. 30
C. 40
D. 50
Question 10
Determine the price elasticity of demand for a product whose price elasticity of supply is 0.5 and the cross-price elasticity of demand is -0.2.
A. 0.5
B. -0.2
C. 1.0
D. -0.5
Question 11
Consider a small open economy with a fixed exchange rate. The government imposes a tariff on imported goods, leading to a decrease in imports. U\sing the Marshall-Lerner condition, determine the effect on the balance of payments.
A. The balance of payments will improve due to the decrease in imports.
B. The balance of payments will worsen due to the decrease in imports.
C. The balance of payments will remain unchanged due to the fixed exchange rate.
D. The balance of payments will improve due to the increase in exports.
Question 12
A government is considering a tax on a particular good. The demand for the good is given by Qd = 100 - 2P, and the supply is given by Qs = 2P. U\sing the concept of elasticity, determine the effect of the tax on the price and quantity of the good.
A. The price will increase, and the quantity will decrease.
B. The price will decrease, and the quantity will increase.
C. The price will remain unchanged, and the quantity will remain unchanged.
D. The price will increase, and the quantity will increase.
Question 13
A firm's revenue function is given by R = 100P - 0.5P^2, where P is the price. If the firm's \cost function is given by C = 50 + 20P, what is the firm's profit function?
A. P = 50 - 0.5Q
B. P = 100 - 0.5Q
C. P = 150 - 0.5Q
D. P = 200 - 0.5Q
Question 14
A firm has a \cost function given by C(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm produces 20 units, what is the total \cost?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 15
A firm is considering a new investment project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦70,000, Year 3: ₦90,000. Calculate the net present value (NPV) of the project u\sing a discount rate of 10%.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

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