POST UTME IMS U 2020 Economics | Objective

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Question 1
A firm's marginal revenue function is given by MR(q) = 20 - 2q, where q is the quantity produced. If the firm's marginal \cost function is given by MC(q) = 10 + 3q, what is the profit-maximizing quantity?
A. 10
B. 20
C. 30
D. 40
Question 2
A country's government budget constraint is given by the equation: G = T + B. If the government's tax revenue (T) is 100 and the budget deficit (B) is 50, find the government's exp\enditure (G).
A. G = 150
B. G = 200
C. G = 250
D. G = 300
Question 3
A firm's total revenue (TR) is given by the equation TR = 200Q - 2Q^2. If the firm's marginal \cost (MC) is given by MC = 100 - 2Q, find the firm's optimal quantity and price.
A. Q = 10, P = 20
B. Q = 20, P = 15
C. Q = 30, P = 10
D. Q = 40, P = 5
Question 4
A consumer's utility function is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the budget constraint is given by 2x + 3y = 12, what is the consumer's optimal bundle?
A. (2, 4)
B. (4, 2)
C. (3, 3)
D. (6, 1)
Question 5
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the firm's profit-maximizing output is 40 units, what is the price elasticity of demand at this output level?
A. 0.5
B. -0.5
C. 1.0
D. 2.0
Question 6
A country's balance of payments (BOP) accounts are given by the following equations: CA = 100 + 0.5Y, SA = 50 + 0.2Y, and FA = 20 + 0.1Y. If the country's nominal GDP (Y) is 1000, find the current account (CA) and the capital account (KA).
A. CA = 550, KA = 150
B. CA = 450, KA = 250
C. CA = 350, KA = 350
D. CA = 250, KA = 450
Question 7
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption function is C = 500 + 0.8Y, investment function is I = 200 + 0.2Y, government sp\ending is G = 1000, and the trade balance is X - M = 500, what is the country's equilibrium GDP?
A. 7500
B. 8000
C. 8500
D. 9000
Question 8
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 ₦1000 and the prices of the two goods are ₦2 and ₦3 respectively, what is the consumer's optimal bundle of goods?
A. (20, 30)
B. (30, 20)
C. (40, 10)
D. (10, 40)
Question 9
Agricultural production in Nigeria is characterized by a high degree of returns to scale. What is the implication of this for the country's agricultural sector?
A. The production function becomes more inelastic.
B. The production function becomes more elastic.
C. The production function becomes more sensitive to changes in inputs.
D. The production function becomes less sensitive to changes in inputs.
Question 10
The demand function for a product is given by p = 100 - 2q, where p is the price and q is the quantity demanded. If the supply function is given by p = 20 + 3q, what is the equilibrium quantity?
A. 10
B. 20
C. 30
D. 40
Question 11
Consider a production function given by Q = 2L^0.5K^0.5. If the price of labor is $10 per unit and the price of capital is $20 per unit, what is the optimal combination of labor and capital?
A. L = 4, K = 1
B. L = 1, K = 4
C. L = 2, K = 2
D. L = 1, K = 1
Question 12
A consumer's utility function is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the budget constraint is given by 2x + 3y = 12, what is the consumer's optimal bundle?
A. (2, 4)
B. (4, 2)
C. (3, 3)
D. (6, 1)
Question 13
A country's GDP is $100 billion, and its GNP is $120 billion. What is the country's net factor income from abroad?
A. $20 billion
B. $10 billion
C. $5 billion
D. $15 billion
Question 14
A monopolistically competitive firm faces a demand curve with the following equation: Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 4Q, find the firm's optimal price and quantity.
A. P = 50, Q = 25
B. P = 75, Q = 12.5
C. P = 100, Q = 0
D. P = 25, Q = 50
Question 15
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the monopolist's optimal price and quantity?
A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20

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