POST UTME IGBINEDION UNIVERSITY 2022 Economics | Objective

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Question 1
The scarcity of land in Nigeria has led to an increase in the price of agricultural products. This is an example of a market structure where a \single buyer or seller has significant influence over the market price. What type of market structure is this?
A. Perfect Competition
B. Monopoly
C. Oligopoly
Correct D. Monopsony

Correct Answer: D

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Question 2
A farmer in Nigeria has 100 hectares of land to cultivate crops. The opportunity \cost of cultivating maize is ₦50,000 per hectare, while the opportunity \cost of cultivating yams is ₦60,000 per hectare. If the farmer wants to maximize profits, how many hectares of land should be allocated to maize?
A. 20 hectares
Correct B. 30 hectares
C. 40 hectares
D. 50 hectares

Correct Answer: B

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Question 3
The Central Bank of Nigeria has increased the reserve requirement for commercial banks from 10% to 15%. This will lead to a decrease in the money supply in the economy. What is the effect of this policy on the interest rate?
A. Increase
Correct B. Decrease
C. No change
D. Uncertain

Correct Answer: B

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Question 4
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price. What is the equilibrium price and quantity?
Correct A. Price: ₦50, Quantity: 50 units
B. Price: ₦75, Quantity: 75 units
C. Price: ₦100, Quantity: 100 units
D. Price: ₦125, Quantity: 125 units

Correct Answer: A

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Question 5
A monopolist is producing a product with a marginal revenue (MR) of ₦100 and a marginal \cost (MC) of ₦80. What is the profit-maximizing quantity?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 6
A firm's total revenue (TR) is given by TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue (MR) is 100 - 4x, find the value of x at which MR = 0.
A. 25
B. 50
C. 75
Correct D. 100

Correct Answer: D

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Question 7
A country's balance of payments (BOP) is given by BOP = X - M, where X is the value of exports and M is the value of imports. If the country's trade deficit is $100 million and the value of exports is $500 million, find the value of imports.
A. $300 million
Correct B. $400 million
C. $500 million
D. $600 million

Correct Answer: B

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Question 8
A monopolist's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue (MR) is 200 - 4P, find the value of P at which MR = 0.
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 9
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 10x + 5y = 100, find the value of x that maximizes utility.
A. 5
B. 10
Correct C. 15
D. 20

Correct Answer: C

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Question 10
A firm's \cost function is given by C = 100 + 2x + 3x^2, where x is the number of units produced. If the firm's revenue function is R = 200x - 2x^2, find the value of x that maximizes profit.
A. 10
B. 20
Correct C. 30
D. 40

Correct Answer: C

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Question 11
Agricultural development in Nigeria has been hindered by the lack of access to credit for small-scale farmers. Which of the following government initiatives is most likely to address this issue?
A. The Agricultural Credit Guarantee Scheme Fund
B. The National Agricultural Extension and Research Liaison Services
C. The Federal Ministry of Agriculture and Rural Development
Correct D. The Central Bank of Nigeria's Agricultural Credit Facility

Correct Answer: D

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Question 12
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its revenue?
A. Revenue will increase
Correct B. Revenue will decrease
C. Revenue will remain unchanged
D. Revenue will increase in the short run but decrease in the long run

Correct Answer: B

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Question 13
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). 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?
Correct A. (20, 10)
B. (15, 20)
C. (10, 15)
D. (5, 10)

Correct Answer: A

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Question 14
A firm is producing a good u\sing a production function \( Q = 2L^2 + 3K \). If the firm's current inputs are L = 5 and K = 10, what is the firm's current output?
A. 50
Correct B. 75
C. 100
D. 125

Correct Answer: B

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Question 15
A monopolist faces a demand curve \( P = 100 - 2Q \) and a marginal \cost curve \( MC = 20 \). If the firm's current output is Q = 20, what is the firm's current price?
A. ₦60
Correct B. ₦80
C. ₦100
D. ₦120

Correct Answer: B

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Question 16
The opportunity \cost of producing one more unit of a good is measured by the
Correct A. marginal \cost
B. marginal revenue
C. marginal product
D. marginal utility

Correct Answer: A

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Question 17
The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, then the opportunity \cost of one more unit of labor is
A. ₦50
B. ₦100
Correct C. ₦200
D. ₦500

Correct Answer: C

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Question 18
The following diagram shows the supply and demand curves for a particular good. If the price of the good is currently ₦50, then the equilibrium quantity is
A. 100
B. 200
Correct C. 300
D. 400

Correct Answer: C

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Question 19
The following table shows the data for a particular industry in Nigeria. If the industry is currently producing 100 units of output, then the average product of labor is
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 20
The following diagram shows the production function for a particular firm. If the firm is currently producing 100 units of output, then the marginal product of labor is
A. 10
B. 20
Correct C. 30
D. 40

Correct Answer: C

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Question 21
The following table shows the data for a particular industry in Nigeria. If the industry is currently producing 100 units of output, then the total product of labor is
A. 1000
B. 2000
Correct C. 3000
D. 4000

Correct Answer: C

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Question 22
The following diagram shows the supply and demand curves for a particular good. If the price of the good is currently ₦50, then the equilibrium quantity is
A. 100
B. 200
Correct C. 300
D. 400

Correct Answer: C

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Question 23
The following table shows the data for a particular industry in Nigeria. If the industry is currently producing 100 units of output, then the average product of labor is
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 24
The following diagram shows the production function for a particular firm. If the firm is currently producing 100 units of output, then the marginal product of labor is
Question 25
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 price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
Correct A. 20%
B. 30%
C. 40%
D. 50%

Correct Answer: A

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