POST UTME GREENFIELD UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has the following utility function: U = 2X + 3Y, where X and Y are the quantities of two goods consumed. The prices of the two goods are ₦50 and ₦100, respectively. If the consumer's income is ₦500, what is the optimal quantity of good X to consume?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 2
A consumer has an income of ₦10,000 and faces the following prices: \( P_X = 5 \), \( P_Y = 10 \). If the consumer's budget constraint is given by \( 5X + 10Y = 10,000 \), and the consumer's indifference curve is given by \( U = 2X + 3Y \), what is the consumer's optimal consumption bundle?
A. \( X = 1000, Y = 500 \)
B. \( X = 500, Y = 1000 \)
C. \( X = 2000, Y = 2000 \)
D. \( X = 0, Y = 1000 \)
Question 3
A country's budget can be classified into three main categories: revenue, exp\enditure, and deficit. What is the difference between revenue and exp\enditure?
A. Revenue is the amount of money the government receives, while exp\enditure is the amount of money the government sp\ends
B. Revenue is the amount of money the government sp\ends, while exp\enditure is the amount of money the government receives
C. Revenue is the difference between exp\enditure and deficit
D. Exp\enditure is the difference between revenue and deficit
Question 4
A firm is producing a product with the following total revenue and total \cost functions: TR = 100q - 2q^2 and TC = 50 + 20q. What is the profit-maximizing quantity of the product?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 5
A firm is facing a downward-sloping demand curve, and its marginal revenue (MR) is decrea\sing as output increases. What is the likely effect on the firm's marginal \cost (MC) curve?
A. The MC curve will shift upward to the right.
B. The MC curve will shift downward to the left.
C. The MC curve will remain unchanged.
D. The MC curve will shift upward to the left.
Question 6
The opportunity \cost of producing one more unit of wheat is the amount of wheat that could have been produced by diverting resources from the production of another good. If the opportunity \cost of producing one more unit of wheat is 2 units of rice, and the price of wheat is ₦50 per unit, and the price of rice is ₦30 per unit, what is the opportunity \cost in terms of rice if the price of wheat increases to ₦60 per unit?
A. 4 units of rice
B. 6 units of rice
C. 8 units of rice
D. 10 units of rice
Question 7
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 \( Q_X = 2L^{0.5}K^{0.5} \). If the firm has 100 units of labor and 200 units of capital, how many units of good X will it produce?
A. 100
B. 200
C. 50
D. 150
Question 8
A firm is considering two different production processes to produce a homogeneous 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 ₦75 per unit, what is the profit-maximizing quantity for the firm?
A. Q = 1000
B. Q = 1500
C. Q = 2000
D. Q = 2500
Question 9
The demand for a commodity is said to be inelastic if the percentage change in the quantity demanded is less than the percentage change in the price. Which of the following is a characteristic of an inelastic demand curve?
A. The demand curve is steeper
B. The demand curve is flatter
C. The demand curve is vertical
D. The demand curve is horizontal
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what percentage increase in labor and capital is required?
A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
C. 30% increase in labor and 30% increase in capital
D. 40% increase in labor and 40% increase in capital
Question 11
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). What does the letter 'C' represent in this formula?
A. Consumption
B. Investment
C. Government Sp\ending
D. Net Exports
Question 12
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost (MC) is given by MC = 10 + 2Q. What is the profit-maximizing price and quantity for the monopolist?
A. P = 50, Q = 25
B. P = 75, Q = 12.5
C. P = 25, Q = 50
D. P = 12.5, Q = 75
Question 13
A firm's \cost function is given by C = 2L + 3K, where C is the \cost, L is the labor, and K is the capital. If the firm wants to minimize its \cost, what is the optimal level of labor and capital?
A. L = 1, K = 1
B. L = 2, K = 2
C. L = 3, K = 3
D. L = 4, K = 4
Question 14
A firm produces a good u\sing a production function given by Q = 10L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the price of the good is ₦100 and the firm's budget constraint is given by 100Q = ₦1000, what is the optimal quantity of labor to use?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 15
Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects the average revenue (AR) curve at a point where the firm is producing at its optimal level of output, what can be concluded about the firm's profit-maximizing output level?
A. The firm is producing at its minimum point on the ATC curve.
B. The firm is producing at its maximum point on the ATC curve.
C. The firm is producing at its optimal level of output.
D. The firm is producing at its minimum point on the AR curve.

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