POST UTME KSU 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The demand function for a good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is decreased by 10%, what is the new quantity demanded?
A. 90
B. 100
C. 110
D. 120
Question 2
A firm's \cost function is given by C = 100 + 2L + 3K, where C is the \cost and L and K are the inputs. If the firm's current inputs are L = 10 and K = 20, calculate the firm's total \cost.
A. \( C = 250 \)
B. \( C = 300 \)
C. \( C = 350 \)
D. \( C = 400 \)
Question 3
A government is considering a policy to increase the price of a good to reduce its demand. The demand curve for the good is given by Qd = 100 - 2P. What is the price elasticity of demand at a price of 20?
A. 0.5
B. 1
C. 2
D. 5
Question 4
A firm's revenue function is given by R(x) = 100x - 2x^2, where x is the number of units produced. If the firm's marginal revenue is 50 at x = 10, what is the value of the firm's total revenue at x = 20?
A. ₦2000
B. ₦2500
C. ₦3000
D. ₦3500
Question 5
The production function for a firm is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 25% while keeping the capital cons\tant at 9 units, what percentage increase in labor is required?
A. 15%
B. 20%
C. 25%
D. 30%
Question 6
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's current price is 20, calculate the firm's elasticity of demand.
A. \( E_d = 0.5 \)
B. \( E_d = 1 \)
C. \( E_d = 2 \)
D. \( E_d = -0.5 \)
Question 7
A firm's total revenue is given by \( TR = 100Q - 2Q^2 \), and its total \cost is given by \( TC = 50Q + 10Q^2 \). What is the profit-maximizing quantity?
A. 10
B. 20
C. 30
D. 40
Question 8
A consumer's indifference curve is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. 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. x = 200, y = 100
B. x = 150, y = 150
C. x = 100, y = 200
D. x = 200, y = 200
Question 9
A government is considering a tax on a particular good. The supply curve of the good is given by Qs = 2P - 10, and the demand curve is given by Qd = 100 - 2P. If the government imposes a tax of 5 on the good, what is the new equilibrium price and quantity?
A. \( P = 20, Q = 30 \)
B. \( P = 25, Q = 20 \)
C. \( P = 30, Q = 10 \)
D. \( P = 35, Q = 0 \)
Question 10
A firm's \cost function is given by C(x) = 100 + 2x^2, where x is the number of units produced. If the firm's revenue function is R(x) = 100x - 2x^2, what is the firm's profit function?
A. 100x - 4x^2 - 100
B. 100x - 2x^2 - 100
C. 100x + 2x^2 - 100
D. 100x + 4x^2 - 100
Question 11
The production function for a firm is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 20% while keeping the labor cons\tant at 16 units, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
Consider a firm operating in a perfectly competitive market with a demand curve given by Qd = 100 - 2P and a supply curve given by Qs = 2P - 10. If the firm's marginal \cost (MC) is 5, what is the profit-maximizing price and quantity?
A. \( P = 20, Q = 45 \)
B. \( P = 25, Q = 35 \)
C. \( P = 30, Q = 25 \)
D. \( P = 35, Q = 15 \)
Question 13
A firm is producing a good u\sing a production function with increa\sing returns to scale. If the firm increases its input of labor by 10%, what is the percentage change in output?
A. 10%
B. 5%
C. 0%
D. 15%
Question 14
A country's money supply is given by the equation M = 1000 + 0.5Y, where M is the money supply and Y is the income. If the country's income is 100 billion naira, calculate the country's money supply.
A. \( M = 1500 \)
B. \( M = 1200 \)
C. \( M = 1000 \)
D. \( M = 500 \)
Question 15
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \). If the country's consumption (C) is 500, investment (I) is 200, government sp\ending (G) is 300, exports (X) are 400, and imports (M) are 300, what is the GDP?
A. ( 1500 )
B. ( 1600 )
C. ( 1700 )
D. ( 1800 )

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