POST UTME EKSU 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 demand curve given by Q = 100 - P. The firm's marginal \cost (MC) is cons\tant at ₦10. What is the profit-maximizing price and quantity for the firm?
A. P = ₦45, Q = 55
B. P = ₦50, Q = 50
C. P = ₦55, Q = 45
D. P = ₦60, Q = 40
Question 2
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. What is the primary implication of this on the consumer's behavior?
A. The consumer is a risk-averse individual.
B. The consumer is a risk-neutral individual.
C. The consumer is a risk-loving individual.
D. The consumer's behavior is unaffected by the indifference curve.
Question 3
A consumer is faced with the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $15, what is the optimal bundle of x and y?
A. \( x=3, y=2 \)
B. \( x=2, y=3 \)
C. \( x=4, y=1 \)
D. \( x=1, y=4 \)
Question 4
The opportunity \cost of producing one more unit of a good is represented by the?
A. Marginal Product Curve
B. Average Product Curve
C. Marginal Revenue Curve
D. Average Total Cost Curve
Question 5
Consider a closed economy with a GDP of $100 billion and a GNP of $120 billion. What is the value of net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 6
The government of Nigeria has introduced a new policy aimed at promoting agricultural development in the country. The policy includes a 10% subsidy on all fertilizers used by farmers. If the price of a fertilizer is ₦500 per unit, what is the price of the fertilizer to the farmer?
A. ₦450
B. ₦500
C. ₦550
D. ₦600
Question 7
A firm is operating in a monopoly market with a demand curve given by Q = 100 - P. The firm's marginal \cost (MC) is cons\tant at ₦10. What is the profit-maximizing price and quantity for the firm?
A. P = ₦50, Q = 50
B. P = ₦55, Q = 45
C. P = ₦60, Q = 40
D. P = ₦65, Q = 35
Question 8
A consumer's budget constraint is given by 2x + 3y = 12. The consumer's indifference curve is downward sloping and convex to the origin. What is the consumer's optimal bundle of x and y?
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 4, y = 0
D. x = 0, y = 4
Question 9
A firm is considering two different production techno\logies: a traditional techno\logy with a production function Q = 2L^0.5K^0.5, and a new techno\logy with a production function Q = 3L^0.7K^0.3. If the firm currently employs 4 units of labor and 2 units of capital, and the input prices are w = ₦100 and r = ₦200, which techno\logy will the firm choose?
A. Traditional techno\logy
B. New techno\logy
C. Both techno\logies are equally profitable
D. Neither techno\logy is profitable
Question 10
A consumer's utility function is given by U = 2x^0.5y^0.5. If the price of good x is ₦50 and the price of good y is ₦100, and if the consumer's income is ₦1000, what is the optimal level of good x (x) and good y (y) that the consumer should purchase?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (w) is ₦100 and the price of capital (r) is ₦50, and if the firm's budget constraint is 100wL + 50rK = 1000, what is the optimal level of labor (L) and capital (K) that the firm should employ?
A. L = 10, K = 10
B. L = 20, K = 5
C. L = 5, K = 20
D. L = 15, K = 15
Question 12
The government of Nigeria has introduced a new policy aimed at promoting industrialization in the country. The policy includes a 20% tariff on all imported goods. If the price of a good imported from abroad is ₦500 per unit, what is the price of the good in the domestic market?
A. ₦500
B. ₦600
C. ₦700
D. ₦800
Question 13
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's utility function is given by U = x + 2y, what is the optimal level of good x (x) and good y (y) that the consumer should purchase?
A. x = 4, y = 2
B. x = 2, y = 4
C. x = 3, y = 3
D. x = 5, y = 1
Question 14
A firm is operating in a monopoly market with a demand curve given by Qd = 100 - 2P. If the firm's marginal \cost (MC) is $10, what is the optimal price to charge?
A. $20
B. $30
C. $40
D. $50
Question 15
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the current output price is p = ₦500, calculate the firm's marginal revenue product.
A. ₦10
B. ₦20
C. ₦30
D. ₦40

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