POST UTME LASU 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 100, what is its marginal \cost (MC)?
A. 50
B. 75
C. 100
D. 125
Question 2
A government imposes a tax of ₦10 on each unit of a good. If the pre-tax price of the good is ₦20, and the demand function for the good is given by Q = 100 - 2P, calculate the new price of the good and the quantity demanded after the tax is imposed.
A. New price = ₦25, Quantity demanded = 40
B. New price = ₦30, Quantity demanded = 30
C. New price = ₦35, Quantity demanded = 20
D. New price = ₦40, Quantity demanded = 10
Question 3
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function C(Q) = 10Q + 5Q^2. What is the monopolist's profit-maximizing price?
A. 20
B. 30
C. 40
D. 50
Question 4
Suppose the exchange rate between the Nigerian naira (NGN) and the South African rand (ZAR) is 1 ZAR = 200 NGN. If a Nigerian consumer has a budget of 400,000 NGN and wants to buy a smartphone that \costs 200 ZAR, what is the maximum number of smartphones the consumer can buy?
A. 2 smartphones
B. 3 smartphones
C. 4 smartphones
D. 5 smartphones
Question 5
A firm's demand function is given by Q = 100 - 2P, and its supply function is given by Q = 2P - 10. If the firm's current price is P = 20, calculate the firm's current quantity supplied and quantity demanded. Also, calculate the firm's current elasticity of demand and elasticity of supply.
A. Quantity supplied = 40, Quantity demanded = 30, Elasticity of demand = 2, Elasticity of supply = 0.5
B. Quantity supplied = 30, Quantity demanded = 40, Elasticity of demand = 0.5, Elasticity of supply = 2
C. Quantity supplied = 50, Quantity demanded = 20, Elasticity of demand = 1, Elasticity of supply = 1
D. Quantity supplied = 20, Quantity demanded = 50, Elasticity of demand = 0.5, Elasticity of supply = 2
Question 6
A country's GNP is ₦120 billion, its GDP is ₦100 billion, and its net factor income from abroad is ₦20 billion. What is the country's GNP?
A. ₦100 billion
B. ₦120 billion
C. ₦140 billion
D. ₦160 billion
Question 7
Consider a firm operating in a perfectly competitive market with a production function given by Q = 3L^0.5K^0.5. If the firm's current input prices are w = 15 and r = 30, and it is currently producing 6 units of output, what is the firm's current input mix?
A. L = 9, K = 1
B. L = 1, K = 9
C. L = 3, K = 3
D. L = 6, K = 6
Question 8
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 increases labor from 4 units to 9 units and capital from 9 units to 16 units, what is the percentage increase in output?
A. 25%
B. 50%
C. 75%
D. 100%
Question 9
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 100, and the prices of the two goods are 2 and 5 respectively, what is the consumer's optimal consumption bundle?
A. x = 10, y = 10
B. x = 20, y = 5
C. x = 5, y = 20
D. x = 15, y = 15
Question 10
A firm is producing a good with a cons\tant elasticity of demand of -2. If the price of the good increases by 10%, what is the percentage change in quantity demanded?
A. -20%
B. -10%
C. 10%
D. 20%
Question 11
A consumer has a budget constraint of 100 units of currency and two goods, A and B. The prices of A and B are 5 and 3 units respectively. If the consumer sp\ends 80 units on good A, what is the opportunity \cost of good B?
A. 10 units
B. 15 units
C. 20 units
D. 25 units
Question 12
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the equilibrium price and quantity of the product?
A. \( P = MC \)
B. \( P = MC + \frac{1}{n} \)
C. \( P = MC - \frac{1}{n} \)
D. \( P = MC + \frac{1}{n} \times \( TR - TC \ \) )
Question 13
A firm's demand curve is given by the equation Qd = 100 - 2P. If the firm's supply curve is Qs = 2P - 50, what is the firm's equilibrium price?
A. 20
B. 30
C. 40
D. 50
Question 14
A country's balance of payments is given by the equation BOP = \( X - M \) + \( F - I \). If the country's exports (X) are 100, imports (M) are 80, foreign investment (F) is 20, and domestic investment (I) is 10, what is the country's balance of payments?
A. 10
B. 20
C. 30
D. 40
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%

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