POST UTME IGBINEDION UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units when the number of labor units is 4 and the number of capital units is 4, what is the marginal product of labor?
A. 2
B. 4
C. 8
D. 16
Question 2
A country's GDP is given by GDP = C + I + G + \( X - M \). What is the country's GDP when C = 100, I = 50, G = 200, X = 300, and M = 150?
A. 500
B. 600
C. 700
D. 800
Question 3
A consumer's budget constraint is given by 2X + 3Y = 12. What is the consumer's optimal bundle of X and Y?
A. (2, 2)
B. (3, 1)
C. (4, 0)
D. (0, 4)
Question 4
Suppose the demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦200
B. ₦150
C. ₦250
D. ₦300
Question 5
A firm's production function is given by Q = 3L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are 150 units each, what is the firm's output?
A. 450 units
B. 600 units
C. 750 units
D. 900 units
Question 6
A firm faces a downward-sloping demand curve for its product. If the firm decreases its price by 10%, what will be the effect on its total revenue?
A. Total revenue will increase by 10%.
B. Total revenue will decrease by 10%.
C. Total revenue will remain unchanged.
D. Total revenue will increase by 20%.
Question 7
A country's balance of payments (BOP) accounts show a trade deficit of $100 million and a capital account surplus of $50 million. What is the country's overall BOP position?
A. Trade deficit of $50 million
B. Trade surplus of $50 million
C. Overall trade deficit of $100 million
D. Overall trade surplus of $50 million
Question 8
A firm's production function is given by Q = 3L^0.5K^0.5. If the firm's output is 9 units when the number of labor units is 1 and the number of capital units is 1, what is the marginal product of capital?
A. 1
B. 2
C. 3
D. 4
Question 9
A firm operating under perfect competition faces a market demand curve that can be represented by the equation Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 50 - 2Q, what is the firm's optimal price and quantity?
A. P = 40, Q = 30
B. P = 50, Q = 20
C. P = 60, Q = 10
D. P = 70, Q = 5
Question 10
A firm faces a downward-sloping demand curve for its product. If the firm increases its price by 15%, what will be the effect on its total revenue?
A. Total revenue will increase by 15%.
B. Total revenue will decrease by 15%.
C. Total revenue will remain unchanged.
D. Total revenue will increase by 20%.
Question 11
A firm's \cost function is given by C = 100 + 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm's labor and capital are 50 units each, what is the firm's \cost?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 12
A firm produces a product u\sing a production function of Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor and K is the capital. If the firm wants to produce 100 units of the product, find the minimum labor and capital required.
A. ₦500
B. ₦600
C. ₦700
D. ₦800
Question 13
A consumer has a budget constraint of 100 units of currency and faces a price of 2 units of currency per unit of good X. If the consumer's utility function is given by U(X) = 2X^2, what is the optimal quantity of good X that the consumer will purchase?
A. 5 units of good X.
B. 10 units of good X.
C. 15 units of good X.
D. 20 units of good X.
Question 14
A country's supply curve is given by the equation Q = 50 + 2P, where Q is quantity and P is price. If the country's demand curve is given by Q = 100 - 2P, what is the equilibrium price and quantity?
A. P = 30, Q = 70
B. P = 40, Q = 60
C. P = 50, Q = 50
D. P = 60, Q = 40
Question 15
A firm faces a demand curve given by the equation Qd = 100 - 2P and a supply curve given by the equation Qs = 2P - 50. If the firm wants to maximize its profit, find the price and quantity at which it should produce.
A. ₦200
B. ₦250
C. ₦300
D. ₦350

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