POST UTME DELSU 2024 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 ₦100. The market price (P) is ₦120. If the firm's average total \cost (ATC) is ₦110, what is the firm's profit-maximizing output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 2
A country's GDP is ₦1,000,000,000,000. If the country's population is 200,000,000, what is the country's per capita income?
A. ₦5,000
B. ₦5,000
C. ₦5,000
D. ₦5,000
Question 3
A firm's demand curve is given by Q = 100 - 2P. The firm's supply curve is given by Q = 2P - 50. What is the equilibrium price?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 4
A firm's demand function is given by Q = 100 - 2P. If the price of the good is currently ₦50, what is the firm's current revenue?
A. ₦2,500
B. ₦2,500
C. ₦2,500
D. ₦2,500
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's input prices are w_L = ₦100 and w_K = ₦200, what is the firm's optimal input bundle?
A. (10 units of L, 20 units of K)
B. (20 units of L, 10 units of K)
C. (15 units of L, 30 units of K)
D. (30 units of L, 15 units of K)
Question 6
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's output is 16 units, and the labor (L) is 4 units, what is the firm's capital (K)?
A. 4 units
B. 8 units
C. 16 units
D. 32 units
Question 7
A firm has a production function Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm produces 20 units of output, what is the total \cost of production?
A. ₦4000
B. ₦5000
C. ₦6000
D. ₦7000
Question 8
A consumer has a budget constraint of ₦1000 and two goods, A and B, priced at ₦200 and ₦300 respectively. If the consumer's indifference curve is \tangent to the budget line, what is the consumer's optimal consumption bundle?
A. (2 units of A, 3 units of B)
B. (3 units of A, 2 units of B)
C. (4 units of A, 1 unit of B)
D. (1 unit of A, 4 units of B)
Question 9
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. U\sing the Marshall-Lerner condition, calculate the percentage change in the exchange rate required for Nigeria's balance of payments to improve, given that the percentage change in export prices is 5% and the percentage change in import prices is 3%.
A. -2%
B. -1%
C. 1%
D. 2%
Question 10
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is ₦50. What is the firm's profit-maximizing price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 11
A firm's demand curve is given by Q = 100 - 2P. The firm's supply curve is given by Q = 2P - 50. What is the equilibrium price?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 12
A consumer has a budget constraint 50x + 75y = 300, where x and y are the quantities of two goods consumed. If the consumer's utility function is U = 2x + 3y, what is the consumer's optimal consumption bundle?
A. (10, 10)
B. (15, 5)
C. (20, 0)
D. (0, 20)
Question 13
The concept of opportunity \cost is a fundamental principle in economics. Which of the following is a correct statement about opportunity \cost?
A. Opportunity \cost is the value of the next best alternative that is given up as a result of making a choice.
B. Opportunity \cost is the value of the next best alternative that is gained as a result of making a choice.
C. Opportunity \cost is the value of the next best alternative that is irrelevant to the choice made.
D. Opportunity \cost is the value of the next best alternative that is unknown to the decision-maker.
Question 14
A firm's demand curve is given by Q = 100 - 2P. The firm's supply curve is given by Q = 2P - 50. What is the equilibrium quantity?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 15
A consumer has a utility function U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦50 and ₦75 respectively, and the consumer sp\ends ₦300 on the two goods, what is the consumer's budget constraint?
A. 50x + 75y = 300
B. 75x + 50y = 300
C. 50x + 75y = 600
D. 75x + 50y = 600

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