POST UTME KSU 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A perfectly competitive market has a demand curve given by P = 100 - 2Q and a supply curve given by P = 10 + 2Q. What is the equilibrium price and quantity?
A. P = $80, Q = 20
B. P = $90, Q = 25
C. P = $100, Q = 30
D. P = $110, Q = 35
Question 2
The concept of scarcity refers to the limited availability of resources. Which of the following is a characteristic of scarcity?
A. Scarcity is a characteristic of abundance.
B. Scarcity is a characteristic of plenty.
C. Scarcity is a characteristic of limited availability.
D. Scarcity is a characteristic of unlimited availability.
Question 3
A firm is operating in a monopolistic market. If the firm increases its production, what will happen to its price?
A. Increase
B. Decrease
C. Remain the same
D. Become indeterminate
Question 4
A firm's total revenue (TR) and total \cost (TC) curves are given by the equations TR = 100Q and TC = 10 + 2Q + 0.1Q^2. If the firm produces 100 units of output, what is the profit?
A. ₦9000
B. ₦10000
C. ₦11000
D. ₦12000
Question 5
The concept of economic planning refers to the process of making decisions about the allocation of resources. Which of the following is a characteristic of economic planning?
A. Economic planning is a spon\taneous process.
B. Economic planning is a deliberate process.
C. Economic planning is a decentralized process.
D. Economic planning is a centralized process.
Question 6
A firm's demand curve is given by 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%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 7
A firm is considering two investment projects. Project A has a 5-year payback period and requires an initial investment of ₦1.5 million. Project B has a 3-year payback period and requires an initial investment of ₦2 million. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 8
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape on the consumer's utility function?
A. The utility function is linear.
B. The utility function is concave.
C. The utility function is convex.
D. The utility function is homogeneous of degree one.
Question 9
The concept of opportunity \cost is closely related to the concept of scarcity. Which of the following statements is true about opportunity \cost?
A. Opportunity \cost is the \cost of producing one unit of a good.
B. Opportunity \cost is the \cost of producing one unit of a good relative to another good.
C. Opportunity \cost is the benefit of producing one unit of a good.
D. Opportunity \cost is the \cost of not producing one unit of a good.
Question 10
A firm is operating in a perfectly competitive market. If the firm increases its production, what will happen to its price?
A. Increase
B. Decrease
C. Remain the same
D. Become indeterminate
Question 11
The production function is a mathematical representation of the relationship between inputs and outputs. Which of the following is a characteristic of a production function?
A. The production function is a linear function.
B. The production function is a nonlinear function.
C. The production function is a cons\tant function.
D. The production function is a decrea\sing function.
Question 12
A firm's \cost function is given by C(Q) = 100 + 2Q + 0.5Q^2, where Q is the quantity produced. If the firm produces 20 units, what is the total \cost of production?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 13
A consumer's indifference curve is given by the equation 2x + 3y = 6, 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. (3, 2)
B. (2, 3)
C. (1, 4)
D. (4, 1)
Question 14
A firm's demand function is given by Q = 100 - 2P. If the price is ₦20, what is the quantity demanded?
A. 20
B. 40
C. 60
D. 80
Question 15
A consumer's utility function is given by U(x,y) = 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. (10, 10)
B. (20, 5)
C. (15, 15)
D. (5, 20)

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