POST UTME IGBINEDION UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The elasticity of demand for a commodity is measured by the percentage change in the quantity demanded in response to a 1% change in the price of the commodity. If the demand for a commodity is elastic, what does this imply about the price elasticity of demand?
A. The price elasticity of demand is less than 1
B. The price elasticity of demand is greater than 1
C. The price elasticity of demand is equal to 1
D. The price elasticity of demand is undefined
Question 2
A firm is faced with a production \cost function of C(x) = 2x^2 + 10x + 100. If the firm produces 10 units of output, what is the total \cost of production?
A. ₦1,300
B. ₦1,400
C. ₦1,500
D. ₦1,600
Question 3
A firm's demand function is given by Qd = 100 - 2P. If the price is ₦20, what is the quantity demanded?
A. ₦40
B. ₦60
C. ₦80
D. ₦100
Question 4
A firm's production function is given by Q = 2L^2 + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm uses 4 labor units and 6 capital units, what is the quantity produced?
A. 10
B. 20
C. 30
D. 40
Question 5
A consumer's utility function is given by U = 2x + 3y, where U is the utility, x is the quantity of good X, and y is the quantity of good Y. If the consumer has a budget of ₦100 and the prices of good X and good Y are ₦20 and ₦30 respectively, what is the consumer's optimal bundle?
A. x = 2, y = 1
B. x = 3, y = 2
C. x = 4, y = 3
D. x = 5, y = 4
Question 6
A firm has a production function given by Q = 2L^0.5K^0.5. If the firm's \cost function is C = 100 + 20L + 30K, find the firm's profit-maximizing level of labor and capital.
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 30, K = 5
D. L = 5, K = 30
Question 7
Consider a country with a GDP of ₦10 trillion and a GNP of ₦12 trillion. If the country's population is 200 million, calculate the per capita income in naira.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 8
A government imposes a tax on a particular good. If the demand for the good is inelastic, what will happen to the price of the good?
A. The price will increase
B. The price will decrease
C. The price will remain unchanged
D. The price will be unaffected
Question 9
The government of a country imposes a tax on imports to raise revenue. The tax rate is 10% of the value of the imported goods. If the value of the imported goods is ₦1,000,000, what is the amount of tax paid?
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000
Question 10
A firm is faced with a production function of Q = 2L^0.5K^0.5. If the firm uses 4 units of labor and 9 units of capital, what is the output?
A. 8
B. 10
C. 12
D. 14
Question 11
A consumer in Nigeria has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods. The consumer's budget constraint is 2x + 3y = 100. What is the consumer's optimal bundle?
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 50, y = 5
Question 12
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue is MR = 50 - 2Q, find the firm's equilibrium price and quantity.
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 13
The government of Nigeria has introduced a new tax policy to increase revenue. The policy includes a 10% tax on all goods and services. If the government's current revenue is ₦100 billion, what will be the new revenue after the tax policy is implemented?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 14
A consumer's utility function is given by U = 2X + 3Y, where X and Y are the quantities of two goods. If the consumer's income is ₦100 and the prices of the two goods are ₦20 and ₦30 respectively, calculate the consumer's optimal bundle.
A. X = 2, Y = 3
B. X = 3, Y = 2
C. X = 4, Y = 1
D. X = 1, Y = 4
Question 15
A country's GDP is ₦5,000,000,000. If the country's population is 20,000,000, what is the per capita income?
A. ₦250
B. ₦300
C. ₦350
D. ₦400

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