POST UTME IGBINEDION UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply function is Qs = 2P - 10, what is the equilibrium price?
A. $20
B. $30
C. $40
D. $50
Question 2
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy requires farmers to pay a 10% tax on their annual income. If a farmer earns ₦500,000 per year, what is the amount of tax the farmer must pay?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 3
A firm is producing a product with a marginal revenue of ₦100 and a marginal \cost of ₦80. If the price elasticity of demand is 0.5, what is the optimal quantity to produce?
A. 10
B. 20
C. 30
D. 40
Question 4
A firm's total revenue (TR) is given by the equation TR = 100q - 2q^2, where q is the quantity sold. If the firm's marginal revenue (MR) is 80, find the quantity at which MR = TR.
A. 20
B. 30
C. 40
D. 50
Question 5
A consumer has a budget of ₦100,000 and faces the following prices: Q1 = ₦50, Q2 = ₦75, Q3 = ₦100. The consumer's indifference curves are given by U = 2x^0.5y^0.5. What is the optimal consumption bundle?
A. Q1 = 10, Q2 = 20, Q3 = 30
B. Q1 = 20, Q2 = 10, Q3 = 20
C. Q1 = 30, Q2 = 15, Q3 = 25
D. Q1 = 40, Q2 = 10, Q3 = 30
Question 6
A country's inflation rate is given by the equation IR = \( P - P0 \)/P0, where P is the current price level and P0 is the base price level. If the current price level is ₦1,500 and the base price level is ₦1,000, what is the inflation rate?
A. 50%
B. 60%
C. 70%
D. 80%
Question 7
A firm is producing a product with a total revenue of ₦1,500 and a total \cost of ₦1,000. If the price elasticity of demand is 0.5, what is the price elasticity of supply?
A. 0.5
B. 1
C. 2
D. 3
Question 8
A firm's total revenue (TR) is given by the equation TR = 100q - 2q^2, where q is the quantity sold. If the firm's marginal revenue (MR) is 80, find the quantity at which MR = TR.
A. 20
B. 30
C. 40
D. 50
Question 9
The following diagram shows the production function of a firm. What is the value of the output when the input is 5 units?
A. 10
B. 20
C. 30
D. 40
Question 10
The following diagram shows the production function of a firm. What is the value of the output when the input is 10 units?
A. 30
B. 60
C. 90
D. 120
Question 11
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \). If the country's consumption is 100, investment is 50, government sp\ending is 75, exports are 150, and imports are 100, what is the country's GDP?
A. 250
B. 300
C. 350
D. 400
Question 12
A consumer has a budget of 100 naira and faces the following prices: q1 = 5 naira, q2 = 10 naira, q3 = 15 naira. If the consumer's indifference curves are given by the equation u = 2q1 + q2 + q3, find the optimal bundle of goods.
A. q1 = 10, q2 = 20, q3 = 30
B. q1 = 20, q2 = 10, q3 = 30
C. q1 = 30, q2 = 20, q3 = 10
D. q1 = 20, q2 = 30, q3 = 10
Question 13
The government of Nigeria has introduced a new policy aimed at promoting industrialization in the country. The policy requires that 20% of the country's budget be allocated to industrial development. If the country's budget is ₦10 trillion, what is the amount allocated to industrial development?
A. ₦2 trillion
B. ₦2.5 trillion
C. ₦3 trillion
D. ₦3.5 trillion
Question 14
The government of Nigeria has introduced a new policy aimed at reducing poverty in the country. The policy requires that 30% of the country's budget be allocated to poverty reduction programs. If the country's budget is ₦10 trillion, what is the amount allocated to poverty reduction programs?
A. ₦3 trillion
B. ₦3.5 trillion
C. ₦4 trillion
D. ₦4.5 trillion
Question 15
A firm is producing a good with the following production function: Q = 2L^2. If the firm wants to produce 16 units of the good, how many units of labor should it hire?
A. 2
B. 4
C. 6
D. 8

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