POST UTME IGBINEDION UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments account is given by the following table:\n\n| Item | 2018 | 2019 |\n| --- | --- | --- |\n| Exports | ₦1000 | ₦1200 |\n| Imports | ₦1500 | ₦1800 |\n| Net Factor Income | ₦200 | ₦250 |\n| Net Transfer | ₦100 | ₦150 |\n\nWhat is the country's balance of payments deficit/surplus in 2019?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 4 and 9, respectively, what is the firm's output?
A. Q = 12
B. Q = 18
C. Q = 24
D. Q = 36
Question 3
A consumer's demand function is given by Q = 100 - 2P. Determine the consumer's surplus at a price of ₦50.
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 4
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, and the prices of the two goods are p_x = 2 and p_y = 3, respectively, what is the consumer's optimal consumption bundle?
A. (2, 2)
B. (4, 1)
C. (6, 0)
D. (0, 4)
Question 5
A firm is considering the introduction of a new product. U\sing the concept of elasticity of demand, explain why the firm might choose to price the product at a level that is less elastic than the demand for its existing products.
A. The firm can use the concept of elasticity of demand to justify pricing the product at a level that is less elastic than the demand for its existing products as a means of increa\sing revenue and market share.
B. The firm can use the concept of elasticity of demand to justify pricing the product at a level that is less elastic than the demand for its existing products as a means of reducing competition and increa\sing profit margins.
C. The firm can use the concept of elasticity of demand to justify pricing the product at a level that is less elastic than the demand for its existing products as a means of improving customer satisfaction and loyalty.
D. The firm can use the concept of elasticity of demand to justify pricing the product at a level that is less elastic than the demand for its existing products as a means of increa\sing the product's perceived value and premium pricing.
Question 6
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is the quantity produced, L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200K = 10000, find the optimal values of L and K.
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 50
D. L = 50, K = 200
Question 7
A firm's total revenue is given by TR = 100P^2 - 200P + 100. Determine the price that maximizes total revenue.
A. P = ₦20
B. P = ₦30
C. P = ₦40
D. P = ₦50
Question 8
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦5 and ₦10 respectively, and the consumer's budget is ₦50, find the optimal quantities of x and y.
A. x = 5, y = 2
B. x = 2, y = 5
C. x = 10, y = 0
D. x = 0, y = 10
Question 9
A firm is considering investing in a new project. The project has a fixed \cost of ₦1,000,000 and a variable \cost of ₦500 per unit produced. If the selling price of the product is ₦1,200 per unit, what is the break-even point?
A. 1,000 units
B. 5,000 units
C. 10,000 units
D. 20,000 units
Question 10
Consider a country with a mixed economy, where the government plays a significant role in the allocation of resources. U\sing the concept of opportunity \cost, explain why the government might choose to invest in a public transportation system rather than a private golf course.
A. The government can use the opportunity \cost to justify the investment in public transportation as a means of reducing congestion and improving air quality.
B. The government can use the opportunity \cost to justify the investment in the private golf course as a means of generating revenue and creating jobs.
C. The government can use the opportunity \cost to justify the investment in public transportation as a means of reducing traffic accidents and improving public health.
D. The government can use the opportunity \cost to justify the investment in the private golf course as a means of increa\sing tourism and boosting the local economy.
Question 11
A consumer's utility function is given by U(x, y) = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of x and y?
A. x = 10, y = 10
B. x = 20, y = 5
C. x = 5, y = 20
D. x = 15, y = 15
Question 12
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1,000 and the prices of x and y are ₦50 and ₦30 respectively, determine the optimal bundle of x and y.
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 25, y = 5
Question 13
A perfectly competitive market has a downward-sloping demand curve and a horizontal supply curve. What is the equilibrium price and quantity in this market?
A. Price = $10, Quantity = 100
B. Price = $5, Quantity = 50
C. Price = $20, Quantity = 200
D. Price = $15, Quantity = 150
Question 14
A consumer's budget constraint is given by 2x + 3y = 12, where x and y are the quantities of two goods consumed. If the consumer's utility function is U = 2x + y, find the optimal quantities of x and y.
A. x = 4, y = 2
B. x = 2, y = 4
C. x = 6, y = 0
D. x = 0, y = 6
Question 15
A firm's \cost function is given by C = 2L + 3K, where L is labor and K is capital. If the firm's current labor and capital inputs are L = 8 and K = 6, respectively, what is the firm's current total \cost?
A. 50
B. 60
C. 70
D. 80

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