POST UTME DELSU 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is operating in a perfectly competitive market with a cons\tant marginal \cost (MC) of ₦10 and a downward-sloping demand curve. If the firm's marginal revenue (MR) is ₦20, what is the optimal quantity of output to produce?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 2
A firm's demand function is given by Q = 100 - 2P + 3I, where Q is the quantity demanded, P is the price, and I is the income. If the price is $10 and the income is $500, calculate the quantity demanded.
A. 50
B. 75
C. 100
D. 125
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. -5%
B. 0%
C. 5%
D. 10%
Question 4
The concept of opportunity \cost is closely related to the law of scarcity. Explain how the law of scarcity leads to opportunity \cost, u\sing a numerical example.
A. The law of scarcity leads to opportunity \cost because it forces individuals to make choices between different goods and services.
B. The law of scarcity leads to opportunity \cost because it results in the allocation of resources to their most valuable uses.
C. The law of scarcity leads to opportunity \cost because it causes the value of one good to increase as the quantity of another good decreases.
D. The law of scarcity leads to opportunity \cost because it results in the production of goods and services that are not in high demand.
Question 5
A firm is considering investing in a new project that has an expected return of 15% per annum and a s\tandard deviation of 20% per annum. If the firm's \cost of capital is 10% per annum, what is the project's internal rate of return (IRR)?
A. 10%
B. 12%
C. 15%
D. 18%
Question 6
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where Q_X is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 4 units of labor and 9 units of capital, how many units of good X will the firm produce?
A. 8 units
B. 10 units
C. 12 units
D. 16 units
Question 7
A firm's revenue function is given by R(x) = 2x^2 + 5x - 3. Find the marginal revenue function and explain its significance.
A. The marginal revenue function is given by MR(x) = 4x + 5.
B. The marginal revenue function is given by MR(x) = 2x + 5.
C. The marginal revenue function is given by MR(x) = 4x - 5.
D. The marginal revenue function is given by MR(x) = 2x - 5.
Question 8
A firm's supply function is given by Q = 2P + 50, where Q is the quantity supplied and P is the price. If the price is $20, calculate the quantity supplied.
A. 50
B. 75
C. 100
D. 125
Question 9
A country's GDP is given by the following equation: GDP = C + I + G + \( X - M \). Explain the significance of each component of the equation.
A. C represents consumption, I represents investment, G represents government sp\ending, X represents exports, and M represents imports.
B. C represents consumption, I represents government sp\ending, G represents investment, X represents imports, and M represents exports.
C. C represents government sp\ending, I represents investment, G represents consumption, X represents exports, and M represents imports.
D. C represents consumption, I represents imports, G represents exports, X represents government sp\ending, and M represents investment.
Question 10
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the optimal bundle of x and y?
A. x = 40, y = 30
B. x = 30, y = 40
C. x = 50, y 20
D. x = 20, y = 50
Question 11
Determine the Marshall-Lerner condition for a country experiencing a trade deficit. Assume the country's export price elasticity is 0.5 and import price elasticity is 0.2.
A. The Marshall-Lerner condition is met if the sum of the export and import price elasticities is greater than 1.
B. The Marshall-Lerner condition is met if the sum of the export and import price elasticities is less than 1.
C. The Marshall-Lerner condition is met if the export price elasticity is greater than the import price elasticity.
D. The Marshall-Lerner condition is met if the export price elasticity is less than the import price elasticity.
Question 12
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 sells 20 units, what is the total revenue?
A. ₦2000
B. ₦1800
C. ₦1600
D. ₦1400
Question 13
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where BOP is the balance of payments, X is the value of exports, M is the value of imports, F is the value of foreign investment, and I is the value of domestic investment. If the value of exports is $100, the value of imports is $80, the value of foreign investment is $20, and the value of domestic investment is $10, calculate the balance of payments.
A. $30
B. $40
C. $50
D. $60
Question 14
A firm's production function is given by Q = 2L + 3K, where L is labor and K is capital. If the firm uses 10 units of labor and 5 units of capital, what is the total output?
A. 25
B. 30
C. 35
D. 40
Question 15
A country's balance of payments is given by BOP = X - M, where X is exports and M is imports. If the country's exports are $100 billion and its imports are $120 billion, what is the balance of payments?
A. $10 billion surplus
B. $10 billion deficit
C. $20 billion surplus
D. $20 billion deficit

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