POST UTME KSU 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A farmer in Nigeria has 100 hectares of land to cultivate. The opportunity \cost of cultivating maize is ₦50,000 per hectare, while the opportunity \cost of cultivating yams is ₦60,000 per hectare. If the farmer wants to maximize his revenue, which crop should he cultivate?
A. Maize
B. Yams
C. Both crops
D. Neither crop
Question 2
A country's balance of payments account is given by the following equation: \( BOP = \( X - M \ \) + \( F - I \) ), where ( X ) is the value of exports, ( M ) is the value of imports, ( F ) is the value of foreign investment, and ( I ) is the value of domestic investment. If the country's exports are $100 billion, imports are $80 billion, foreign investment is $20 billion, and domestic investment is $30 billion, what is the value of the balance of payments?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 3
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.
A. Q = 20, P = 40
B. Q = 30, P = 50
C. Q = 40, P = 60
D. Q = 50, P = 70
Question 4
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 5
A firm's production function is given by \( Q = 2L^0.5K^0.5 \), where ( Q ) is the quantity produced, ( L ) is the amount of labor used, and ( K ) is the amount of capital used. If the firm's \cost function is given by \( C = 100L + 200K \), what is the value of ( L ) when the firm's marginal product of labor is equal to its wage?
A. 10
B. 20
C. 30
D. 40
Question 6
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and it currently employs 4 units of labor and 9 units of capital, calculate the firm's current total \cost of production.
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 7
A consumer in Nigeria has a budget of ₦100,000 per month. The consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of units of good X and y is the number of units of good Y. If the price of good X is ₦50 per unit and the price of good Y is ₦60 per unit, how many units of good X should the consumer buy?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 8
The government of Nigeria has introduced a new tax policy to increase revenue. The tax rate is 10% of the income, and the income tax threshold is ₦200,000. If a person earns ₦250,000 per annum, how much tax will they pay?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 9
A government imposes a tax of ₦10 on a good. If the demand for the good is given by the equation Qd = 100 - 2P and the supply is given by Qs = 2P - 10, what is the new equilibrium price?
A. ₦60
B. ₦70
C. ₦80
D. ₦90
Question 10
Suppose a firm's demand function is given by Q = 100 - 2P and its supply function is given by Q = 2P + 10. Find the equilibrium price and quantity u\sing the supply and demand model.
A. ₦50, 50 units
B. ₦75, 25 units
C. ₦100, 0 units
D. ₦125, 100 units
Question 11
U\sing the Marshall-Lerner condition, determine the effect of a 10% devaluation of the naira on the balance of payments of Nigeria, assuming the price elasticity of demand for exports is 2 and the price elasticity of demand for imports is 1.5.
A. The devaluation will lead to an improvement in the balance of payments.
B. The devaluation will lead to a deterioration in the balance of payments.
C. The devaluation will have no effect on the balance of payments.
D. The devaluation will lead to a decrease in the trade deficit.
Question 12
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production functions are given by Q_A = 2L^0.5K^0.5 and Q_B = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, find the optimal allocation of labor and capital between the two goods.
A. L_A = 50, L_B = 50, K_A = 25, K_B = 25
B. L_A = 75, L_B = 25, K_A = 37.5, K_B = 12.5
C. L_A = 100, L_B = 0, K_A = 50, K_B = 0
D. L_A = 0, L_B = 100, K_A = 0, K_B = 50
Question 13
A government has a tax function of \( T = 100 + 0.1Y \) and a government exp\enditure function of \( G = 200 + 0.2Y \). Determine the equilibrium level of government revenue.
A. Y = 1000
B. Y = 2000
C. Y = 3000
D. Y = 4000
Question 14
A consumer has a utility function of \( U = 2x + 3y \) and budget constraint of \( 2x + 3y = 30 \). Determine the optimal consumption bundle.
A. x = 5, y = 10
B. x = 10, y = 5
C. x = 15, y = 0
D. x = 0, y = 20
Question 15
A consumer's utility function is given by ( U(x, y) = 2x + 3y ), where ( x ) is the number of units of good X consumed and ( y ) is the number of units of good Y consumed. If the consumer's budget constraint is given by \( 2x + 3y = 100 \), what is the value of ( x ) when the consumer is at the point of indifference between good X and good Y?
A. 20
B. 30
C. 40
D. 50

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