POST UTME ELIZADE UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm operating under perfect competition faces a market demand curve that is downward-sloping. What is the shape of the firm's marginal revenue (MR) curve?
A. Horizontal
B. Vertical
C. Downward-sloping
D. Upward-sloping
Question 2
A firm is considering investing in a new project. The project requires an initial investment of ₦100,000 and is expected to generate a revenue of ₦120,000 per year for 5 years. The firm's \cost of capital is 10% per year. What is the net present value (NPV) of the project?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 3
A consumer's utility function is given by the equation U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 50, what is the optimal combination of x and y?
A. x = 2, y = 4
B. x = 3, y = 5
C. x = 4, y = 6
D. x = 5, y = 7
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue function is MR = 50 - 2Q. What is the price at which the monopolist maximizes profits?
A. ₦20
B. ₦25
C. ₦30
D. ₦35
Question 5
Consider a firm that faces a demand curve given by \( Q = 100 - 2P \) and a marginal \cost curve given by \( MC = 10 + 2Q \). If the firm produces 20 units, what is the price it will charge?
A. ( 40 )
B. ( 50 )
C. ( 60 )
D. ( 70 )
Question 6
A monopolist faces a demand curve given by \( Q = 100 - 2P \) and a marginal \cost curve given by \( MC = 10 + 2Q \). If the firm produces 20 units, what is the price it will charge?
A. ( 40 )
B. ( 50 )
C. ( 60 )
D. ( 70 )
Question 7
Consider a firm that produces two goods, A and B. The production function for good A is given by \( Q_A = 10L_A + 5K_A \) and for good B is given by \( Q_B = 8L_B + 3K_B \). If the firm has 10 units of labor and 5 units of capital, how many units of good A will it produce?
A. ( 50 )
B. ( 60 )
C. ( 70 )
D. ( 80 )
Question 8
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production function for good X is given by X = 2L^0.5K^0.5, while the production function for good Y is given by Y = 3L^0.25K^0.75. If the firm has 100 units of labor and 200 units of capital, and it wants to maximize the total output \( X + Y \), what is the optimal allocation of labor and capital between the two goods?
A. Allocate 50 units of labor and 100 units of capital to good X, and 50 units of labor and 100 units of capital to good Y.
B. Allocate 75 units of labor and 150 units of capital to good X, and 25 units of labor and 50 units of capital to good Y.
C. Allocate 100 units of labor and 200 units of capital to good X, and 0 units of labor and 0 units of capital to good Y.
D. Allocate 0 units of labor and 0 units of capital to good X, and 100 units of labor and 200 units of capital to good Y.
Question 9
A country's GNP is ₦150 billion, its imports are ₦30 billion, and its exports are ₦35 billion. What is its GDP at factor \cost?
A. ₦130 billion
B. ₦135 billion
C. ₦140 billion
D. ₦145 billion
Question 10
A firm's total revenue (TR) is given by the equation TR = 1000 + 20Q - 0.5Q^2, where Q is the quantity sold. If the firm sells 100 units, what is the marginal revenue?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 11
A firm's \cost function is given by the equation C = 100 + 20Q + 0.5Q^2, where Q is the quantity produced. If the firm produces 50 units, what is the total \cost?
A. ₦1500
B. ₦2000
C. ₦2500
D. ₦3000
Question 12
A government is considering implementing a tax on a particular good. The supply function for the good is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. The demand function for the good is given by Q = 100 - 2P. If the government imposes a tax of ₦10 per unit on the good, what will be the new equilibrium price and quantity?
A. Price = ₦60, Quantity = 80 units
B. Price = ₦70, Quantity = 90 units
C. Price = ₦80, Quantity = 100 units
D. Price = ₦90, Quantity = 110 units
Question 13
A firm is producing a product with a total revenue (TR) of ₦1,000,000 and a total \cost (TC) of ₦800,000. If the firm's profit-maximizing output is 100 units, what is the opportunity \cost of producing one more unit of the product?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 14
A monopolist is facing a demand curve with the following equation: P = 100 - 2Q. If the firm's marginal \cost (MC) is ₦20, what is the profit-maximizing quantity of the product?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 15
A consumer is faced with the following budget constraint: 2x + 3y = 12. If the price of good x is ₦2 and the price of good y is ₦3, what is the consumer's optimal bundle of goods?
A. (2, 2)
B. (4, 1)
C. (6, 0)
D. (0, 4)

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