POST UTME KSU 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit of the good decreases. However, this law does not apply to all goods. Which of the following goods is an exception to the law of diminishing marginal utility?
Question 2
A firm's production function is given by \( Q = 2L^2 + 3K \). If the firm's output is 100 units and the price of labor is $10 per unit, what is the minimum \cost of production?
Question 3
The following table shows the value of Nigeria's exports and imports for the year 2019. If the value of exports is ₦1.2 trillion and the value of imports is ₦1.5 trillion, calculate the balance of trade for Nigeria in 2019.
Question 4
A firm produces two goods, A and B. The production function for good A is given by Q_A = 2L^0.5 + 3K^0.5, where L is labor and K is capital. The production function for good B is given by Q_B = 4L^0.5 + 2K^0.5. If the firm has 100 units of labor and 50 units of capital, calculate the total output of the firm.
Question 5
A monopolist faces a demand curve given by P = 100 - 2Q. The marginal \cost is cons\tant at ₦50. What is the profit-maximizing quantity?
Question 6
A farmer produces two crops, maize and yam. The production function for maize is given by Qm = 100x + 50y, where Qm is the quantity of maize produced and x and y are the inputs. The production function for yam is given by Qy = 50x + 100y, where Qy is the quantity of yam produced. If the farmer uses 100 units of x and 50 units of y, find the quantities of maize and yam produced.
Question 7
The following diagram shows the supply and demand curves for a particular good.
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm increases labor by 20% and capital by 15%, what is the percentage change in output?
Question 9
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the goods are ₦10 and ₦20 respectively, and the consumer has a budget of ₦100, what is the optimal bundle?
Question 10
A consumer has a budget constraint of ₦1,000 and a preference for two goods, A and B. The prices of A and B are ₦500 and ₦200 respectively. What is the consumer's optimal bundle of goods?
Question 11
A country's balance of payments (BOP) is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period. Which of the following is NOT a component of the BOP?
Question 12
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. U\sing the concept of returns to scale, determine whether the firm is experiencing increa\sing, decrea\sing, or cons\tant returns to scale.
Question 13
A perfectly competitive market has a demand curve that is downward sloping and a supply curve that is upward sloping. If the market price is $10, and the demand curve is given by Q = 100 - 2P, and the supply curve is given by Q = 2P - 10, what is the equilibrium quantity?
Question 14
The concept of opportunity \cost is a fundamental principle in economics that refers to the value of the next best alternative that is given up when a choice is made. Which of the following is an example of an opportunity \cost?
Question 15
The demand curve for a commodity is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply curve is given by Qs = 2P - 100, where Qs is the quantity supplied. Find the equilibrium price and quantity.
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.
Unlock Full Access
Available for Android & Windows