POST UTME EKSU 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The production function is given by Q = 2L^0.5K^0.5. If the price of labor \( P_L \) is ₦100 per unit and the price of capital \( P_K \) is ₦200 per unit, what is the total \cost of producing 4 units of output?
A. ₦400
B. ₦800
C. ₦1200
D. ₦1600
Question 2
A country's money supply is given by M = 1000 + 0.5Y, where M is the money supply and Y is the national income. If the country's national income is 10,000, what is the money supply?
A. 5000
B. 6000
C. 7000
D. 8000
Question 3
A firm's demand function for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply function is given by Qs = 2P - 100, what is the equilibrium price and quantity?
A. 50, 50
B. 75, 25
C. 100, 0
D. 200, -50
Question 4
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes the firm's revenue.
A. 1
B. 2
C. 3
D. 4
Question 5
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) curve is given by MR = 200 - 2Q, what is the firm's equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A firm is considering two alternative production processes for a new product. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the market price of the product is ₦80 per unit, which production process should the firm choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 7
A firm's \cost function is given by C(x) = 2x^2 + 10x. If the firm produces 100 units of output, what is the firm's average \cost?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 8
A firm's budget function is given by B = 1000 + 0.5Y, where B is the budget and Y is the national income. If the firm's national income is 10,000, what is the budget?
A. 5000
B. 6000
C. 7000
D. 8000
Question 9
A country's balance of payments (BOP) accounts can be classified into which of the following categories?
A. Current account, capital account, and financial account
B. Current account, capital account, and trade account
C. Current account, capital account, and investment account
D. Current account, capital account, and exchange account
Question 10
The money supply in an economy is determined by the central bank. Which of the following is a correct statement regarding the relationship between the money supply and the interest rate?
A. An increase in the money supply leads to a decrease in the interest rate.
B. A decrease in the money supply leads to an increase in the interest rate.
C. The money supply has no effect on the interest rate.
D. The interest rate has no effect on the money supply.
Question 11
A government imposes a tax of ₦5 per unit on a good. The supply function is given by Q = 2P + 10. Find the new supply function after the tax is imposed.
A. Q = 2P + 20
B. Q = 2P + 25
C. Q = 2P + 30
D. Q = 2P + 35
Question 12
A firm's demand function for a product is given by \( Q = 100 - 2P \), where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, find the price at which it should sell the product.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
Suppose the demand function for a commodity is given by Q = 100 - 2P and the supply function is given by Q = 2P + 10. Find the equilibrium price and quantity.
A. ₦50, 60 units
B. ₦75, 50 units
C. ₦100, 40 units
D. ₦120, 30 units
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor \( P_L \) is ₦100 per unit and the price of capital \( P_K \) is ₦200 per unit, what is the optimal combination of labor and capital that minimizes the \cost of producing 4 units of output?
A. L = 4, K = 2
B. L = 2, K = 4
C. L = 1, K = 8
D. L = 8, K = 1
Question 15
The agricultural sector in Nigeria is a significant contributor to the country's GDP. Which of the following is a correct statement regarding the impact of agricultural subsidies on the agricultural sector?
A. Agricultural subsidies lead to an increase in the production of crops and a decrease in the price of agricultural products.
B. Agricultural subsidies lead to a decrease in the production of crops and an increase in the price of agricultural products.
C. Agricultural subsidies have no effect on the production of crops and the price of agricultural products.
D. Agricultural subsidies lead to an increase in the production of crops and an increase in the price of agricultural products.

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