POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the point where L = 16 and K = 9?
A. 1
B. 2
C. 3
D. 4
Question 2
The Nigerian government has introduced a new policy to increase the production of textiles. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of textiles by 20%. What is the likely effect of this policy on the overall demand for textiles?
A. The demand for textiles will increase by 10%
B. The demand for textiles will decrease by 5%
C. The demand for textiles will remain the same
D. The demand for textiles will increase by 15%
Question 3
A firm's production function is given by \( Q = 2K^{0.5}L^{0.5} \). What is the return to scale when K = 4 and L = 4?
A. Increa\sing returns to scale
B. Decrea\sing returns to scale
C. Cons\tant returns to scale
D. Negative returns to scale
Question 4
A firm is considering investing in a new project with an initial \cost of ₦100,000 and expected annual profits of ₦20,000. If the firm's \cost of capital is 10% and the project is expected to last for 5 years, what is the net present value (NPV) of the project?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 5
A country's government imposes a tax on a good, cau\sing the supply curve to shift from S1 to S2. The demand curve remains unchanged. Find the new equilibrium price and quantity.
A. P = 20, Q = 40
B. P = 30, Q = 30
C. P = 40, Q = 20
D. P = 50, Q = 10
Question 6
A country's government imposes a tax on a good, cau\sing the supply curve to shift from S1 to S2. The demand curve remains unchanged. Find the new equilibrium price and quantity.
A. P = 20, Q = 40
B. P = 30, Q = 30
C. P = 40, Q = 20
D. P = 50, Q = 10
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the total product of labor (TPL) when the firm is producing at the point where L = 16 and K = 9?
A. 20
B. 30
C. 40
D. 50
Question 8
A country's GDP is ₦10 trillion, and its GNP is ₦11 trillion. What is the net factor income from abroad?
A. ₦1 trillion
B. ₦0.5 trillion
C. ₦1.5 trillion
D. ₦2 trillion
Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to maximize profit, what is the optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 10
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's \cost function is C(x) = 3x^2 + 2x + 10, what is the profit function?
A. -x^2 + 3x - 9
B. x^2 - 3x + 9
C. x^2 + 3x - 9
D. -x^2 - 3x + 9
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of capital (MPK) when the firm is producing at the point where L = 16 and K = 9?
A. 1
B. 2
C. 3
D. 4
Question 12
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price, assuming the firm's objective is to maximize profits.
A. Q = 20, P = 40
B. Q = 30, P = 50
C. Q = 40, P = 60
D. Q = 50, P = 70
Question 13
Consider a perfectly competitive market with 5 firms, each producing 100 units of a homogeneous good. If the market price is ₦100 per unit, and the marginal \cost of production is ₦80 per unit, what is the economic profit of each firm?
A. ₦1000
B. ₦500
C. ₦2000
D. ₦0
Question 14
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price, assuming the firm's objective is to maximize profits.
A. Q = 20, P = 40
B. Q = 30, P = 50
C. Q = 40, P = 60
D. Q = 50, P = 70
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the point where L = 16 and K = 9?
A. 1
B. 2
C. 3
D. 4

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