POST UTME DELSU 2020 Economics | Objective

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Question 1
An economy is experiencing a recession. The government decides to implement a fiscal policy to stimulate the economy. Which of the following fiscal policy tools would be most effective in increa\sing aggregate demand?
A. Increa\sing government sp\ending on infrastructure projects.
B. Reducing taxes to increase disposable income.
C. Implementing a monetary policy to increase the money supply.
D. Increa\sing government subsidies to bu\sinesses.
Question 2
A perfectly competitive firm's marginal revenue (MR) is given by the equation MR = 50 - 0.5x. If the firm's marginal \cost (MC) is 20, what is the profit-maximizing quantity of output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 3
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by \( Q = 100K^0.4L^0.6 \). If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, and the firm's objective is to maximize profit, what is the optimal combination of capital and labor?
A. \( K = 100, L = 50 \)
B. \( K = 50, L = 100 \)
C. \( K = 100, L = 100 \)
D. \( K = 50, L = 50 \)
Question 4
A firm's \cost function is given by C = 2L + 3K. If the firm's current output is 16 units, and it wants to increase output to 25 units, what should be the new ratio of labor to capital?
A. 1:1
B. 2:1
C. 1:2
D. 3:2
Question 5
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by \( Q = 100L^0.4K^0.6 \). If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, and the firm's objective is to minimize \cost, what is the optimal combination of labor and capital?
A. \( L = 100, K = 50 \)
B. \( L = 50, K = 100 \)
C. \( L = 100, K = 100 \)
D. \( L = 50, K = 50 \)
Question 6
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's marginal \cost is 10, what is the profit-maximizing price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue (MR) function is given by MR = 200 - 2Q. What is the price elasticity of demand (PED) at the point where Q = 20?
A. 0.5
B. 1
C. 2
D. 4
Question 8
A firm is considering implementing a new pricing strategy. The firm's current price is ₦100 per unit. If the firm wants to increase its revenue by 20%, what should be the new price?
A. ₦120
B. ₦120.00
C. ₦120.00
D. ₦120.00
Question 9
A firm's supply curve is given by the equation Qs = 2P - 10, where Qs is the quantity supplied and P is the price. If the firm's marginal revenue is 20, what is the profit-maximizing quantity of output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 10
A country's agricultural sector is characterized by a high degree of economies of scale. What is the likely effect on the country's agricultural production?
A. Increased production
B. Decreased production
C. No change in production
D. Dep\ends on the type of crop
Question 11
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 12
A firm's demand for labor is given by L = 100 - 2P, where P is the price of labor. If the price of labor increases by 10%, what is the new demand for labor?
A. 90
B. 95
C. 100
D. 105
Question 13
Consider a production function Q = 2L^2, where Q is output and L is labor. If the marginal product of labor is 4L, what is the value of L?
A. 2
B. 4
C. 6
D. 8
Question 14
The Nigerian government has introduced a new policy to increase industrial production. The policy includes providing subsidies to industries, improving infrastructure, and providing training on new techno\logies. What is the likely effect of this policy on the industrial sector?
A. Increase in industrial production
B. Decrease in industrial production
C. No change in industrial production
D. Increase in industrial prices
Question 15
A country's GDP is ₦1,500,000,000. The country's population is 20,000,000. What is the country's GDP per capita?
A. ₦75
B. ₦75.00
C. ₦75.00
D. ₦75.00

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