POST UTME IMS U 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 4x + 5y = 20, what is the consumer's optimal bundle of goods?
A. (2, 2)
B. (4, 4)
C. (6, 2)
D. (3, 5)
Question 2
A firm's demand function is Q = 100 - 2P. If the firm's price is ₦20, what is the firm's quantity demanded?
A. 40
B. 50
C. 60
D. 70
Question 3
A firm's production function is given by Q = 3L^\( 1/3 \)K^\( 2/3 \), where L is labor and K is capital. If the firm's current labor and capital inputs are L = 27 and K = 8, respectively, what is the firm's current output?
A. 27
B. 36
C. 54
D. 72
Question 4
Consider a consumer with a utility function U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. (10, 20)
B. (20, 10)
C. (15, 15)
D. (5, 5)
Question 5
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 32
B. 48
C. 64
D. 80
Question 6
A firm has a demand function given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what price should it charge?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
A firm faces a production function given by Q = 2L^0.5 and a market wage rate of ₦50 per hour. If the firm's objective is to maximize profits, what is the optimal labor input?
A. \( L = 10 \)
B. \( L = 20 \)
C. \( L = 30 \)
D. \( L = 40 \)
Question 8
Consider a firm that operates in a perfectly competitive market. If the firm's production function is given by Q = 2L^0.5 and the market wage rate is ₦50 per hour, what is the firm's optimal labor input?
A. \( L = 10 \)
B. \( L = 20 \)
C. \( L = 30 \)
D. \( L = 40 \)
Question 9
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are ₦100 and its imports are ₦80, find the balance of payments.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 10
A firm's production function is Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 16 and 9 respectively, what is the firm's output?
A. 16
B. 18
C. 20
D. 22
Question 11
A firm's \cost function is given by C(x) = 2x^2 + 15x + 100. If the firm's revenue function is R(x) = 20x - 0.5x^2, find the profit-maximizing level of output, given that the firm's fixed \costs are ₦500.
A. 10
B. 15
C. 20
D. 25
Question 12
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's current price is P = 20, what is the firm's current quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 13
Consider the following diagram of the supply and demand curves for a particular good. If the price elasticity of demand is -2 and the price elasticity of supply is 4, what is the equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 14
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the firm produces 20 units of output, what is the profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 15
Consider a market with a demand function \( Q_d = 100 - 2P \) and a supply function \( Q_s = 2P - 20 \). If the market is in equilibrium, what is the price at which this occurs?
A. ₦50
B. ₦75
C. ₦100
D. ₦125

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