POST UTME ELIZADE UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by ( R(x) = 3x^2 - 2x + 10 ). If the firm produces 15 units, what is the total revenue?
A. ( 3(15)^2 - 2(15) + 10 = 645 )
B. ( 3(15)^2 - 2(15) + 10 = 615 )
C. ( 3(15)^2 - 2(15) + 10 = 675 )
D. ( 3(15)^2 - 2(15) + 10 = 695 )
Question 2
A monopolist faces a demand curve with a cons\tant elasticity of -3. If the firm's marginal revenue curve is given by MR = 20 - 3Q, what is the firm's optimal output level?
A. Q = 5
B. Q = 10
C. Q = 15
D. Q = 20
Question 3
Consider a perfectly competitive market with two firms, A and B. Firm A has a \cost function C_A(q) = 2q^2 + 10q + 5, while Firm B has a \cost function C_B(q) = 3q^2 + 8q + 2. If the market price is P = 20, and the firms produce q_A = 5 units and q_B = 3 units, respectively, what is the total revenue of Firm A?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 4
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are ₦100 billion, imports are ₦80 billion, foreign investment is ₦20 billion, and domestic investment is ₦30 billion, what is the balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 5
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. The firm's supply function is given by Q = 2P - 10. If the market equilibrium price is $20, calculate the consumer surplus and the producer surplus.
A. $100
B. $200
C. $300
D. $400
Question 6
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 7
A consumer has an indifference curve given by U = 2x + 3y, where x and y are the quantities of two goods. The budget constraint is given by 2x + 3y = 12. If the consumer's initial \endowment is (x, y) = (2, 4), calculate the consumer's optimal consumption bundle and the marginal rate of substitution (MRS) between the two goods.
A. (4, 2)
B. (3, 3)
C. (2, 4)
D. (1, 5)
Question 8
A country's inflation rate is given by the following equation: inflation rate = \( CPI - 100 \) / 100. If the current CPI is 120, what is the inflation rate?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
A central bank increases the money supply by 10%. What is the effect on the price level?
A. 10% decrease
B. 10% increase
C. 5% decrease
D. 5% increase
Question 10
A country's GDP is ( 100 ) billion. If the country's population is ( 50 ) million, what is the per capita GDP?
A. ( 2 )
B. ( 5 )
C. ( 10 )
D. ( 20 )
Question 11
A firm operates in a perfectly competitive market with a demand curve given by Q = 100 - 2P and a \cost function of C(Q) = 2Q^2 + 10Q. Find the firm's profit-maximizing quantity and price.
A. Q = 20, P = ₦40
B. Q = 30, P = ₦60
C. Q = 40, P = ₦80
D. Q = 50, P = ₦100
Question 12
Consider a closed economy with a \single good, labor, and capital. The production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the price of the good is $10, the wage rate is $5 per unit of labor, and the rental rate of capital is $2 per unit of capital, calculate the value of the marginal product of labor (MPL) and the marginal product of capital (MPK) when L = 4 and K = 9.
A. $2.50
B. $3.00
C. $3.50
D. $4.00
Question 13
Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average GDP per capita is ₦50,000, what is the implied value of the country's GNP?
A. ₦10 trillion
B. ₦20 trillion
C. ₦30 trillion
D. ₦40 trillion
Question 14
A perfectly competitive firm's supply curve is upward-sloping because it is a
A. price-taker
B. price-maker
C. price-setter
D. price-follower
Question 15
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue curve is given by MR = 10 - 2Q, what is the firm's optimal output level?
A. Q = 5
B. Q = 10
C. Q = 15
D. Q = 20

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