POST UTME LASU 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm operating under perfect competition has a \cost function given by C(q) = 2q^2 + 10q. If the market price is $15, what is the firm's profit-maximizing quantity?
A. 10
B. 20
C. 30
D. 40
Question 2
A firm's \cost function is given by C(q) = 10q + 100. If the market price is $15, what is the firm's profit-maximizing quantity?
A. \( q = 5 \)
B. \( q = 10 \)
C. \( q = 15 \)
D. \( q = 20 \)
Question 3
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (100, 50)
B. (50, 100)
C. (200, 0)
D. (0, 200)
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10, what is the optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A firm is facing a decrease in demand for its product. The firm's marginal revenue (MR) and marginal \cost (MC) curves are given by the following equations:
A. The firm will increase its price and reduce its output.
B. The firm will decrease its price and increase its output.
C. The firm will keep its price and output unchanged.
D. The firm will increase its price and increase its output.
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital are fixed at 100 and 200 respectively, what is the optimal level of output?
A. 100
B. 200
C. 300
D. 400
Question 7
A country's inflation rate is 5% and its nominal interest rate is 10%. If the country's real interest rate is 5%, what is the expected rate of return on investment?
A. 10%
B. 5%
C. 15%
D. 20%
Question 8
A firm is producing at a point where its marginal \cost is equal to its marginal revenue. If the firm's marginal \cost is 10 and its marginal revenue is 20, what is the price at which the firm will produce 40 units?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
A country's balance of payments is in equilibrium when the current account is equal to the capital account. If the country's current account is -$100 million and the capital account is $150 million, what is the net capital outflow?
A. $250 million
B. $150 million
C. $100 million
D. $50 million
Question 10
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue function is MR = 200 - 2Q. If the firm's marginal \cost is 20, what is the optimal price and quantity?
A. P = 50, Q = 25
B. P = 40, Q = 30
C. P = 30, Q = 35
D. P = 20, Q = 40
Question 11
A firm is considering two production processes. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the firm produces 10,000 units, which process is more profitable?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 12
A firm is producing a good with a cons\tant elasticity of demand (ED) of 2. The firm's marginal revenue (MR) and marginal \cost (MC) curves are given by the following equations:
A. The firm will produce at a level where MR = MC.
B. The firm will produce at a level where MR > MC.
C. The firm will produce at a level where MR < MC.
D. The firm will not produce at all.
Question 13
A firm operating in a perfectly competitive market produces two goods, A and B. The production of good A generates a positive externality for the production of good B. If the firm's marginal revenue product of labor for good A is 10 and the marginal revenue product of labor for good B is 15, what is the optimal labor allocation between the two goods?
A. 50% of labor allocated to good A and 50% to good B
B. 60% of labor allocated to good A and 40% to good B
C. 70% of labor allocated to good A and 30% to good B
D. 80% of labor allocated to good A and 20% to good B
Question 14
A government imposes a tax on a firm's output. The firm's supply curve is given by Q = 100 + 2P. The tax increases the firm's \cost by $10 per unit. What is the new supply curve?
A. Q = 90 + 2P
B. Q = 100 + 2P
C. Q = 110 + 2P
D. Q = 120 + 2P
Question 15
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the use of fertilizers. However, some critics argue that the policy will lead to an increase in inflation. Which of the following is a possible reason for this increase in inflation?
A. The increased demand for fertilizers will lead to a shortage of fertilizers, cau\sing prices to rise.
B. The subsidies provided to farmers will lead to an increase in the money supply, cau\sing inflation.
C. The improved irrigation systems will lead to an increase in crop yields, cau\sing prices to fall.
D. The increased use of fertilizers will lead to an increase in the \cost of production, cau\sing prices to rise.

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
Help others prepare! Share this practice hub: