POST UTME LASU 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Agricultural sector in Nigeria contributes about 25% of the country's GDP. If the GDP of Nigeria is ₦50 trillion, what is the value of agricultural sector?
A. ₦12.5 trillion
B. ₦12.5 billion
C. ₦12.5 million
D. ₦12.5 thousand
Question 2
A firm operating in a perfectly competitive market produces two goods, A and B. The production of good A is subject to increa\sing returns to scale, while the production of good B is subject to decrea\sing returns to scale. If the firm's production function for good A is given by Q_A = 2L^2 + 3K, and the production function for good B is given by Q_B = 4L - 2K, where L is labor and K is capital, what is the firm's optimal input combination?
A. L = 2, K = 1
B. L = 1, K = 2
C. L = 3, K = 0
D. L = 0, K = 3
Question 3
A firm is considering investing in a new project. The project has a \cost of ₦100,000 and is expected to generate a revenue of ₦150,000. If the firm's \cost of capital is 10%, what is the project's net present value?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 4
A monopolist faces a demand curve given by Q_d = 100 - 2P and a \cost function given by C(q) = 2q^2 + 5q + 10. If the firm's marginal revenue is given by MR = 200 - 2q, what is the firm's optimal output level?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 5
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 12, and the prices of the two goods are given by p_x = 2 and p_y = 3, what is the consumer's optimal consumption bundle?
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 6, y = 0
D. x = 0, y = 6
Question 6
A farmer is producing wheat with a total revenue of ₦2,000 and a total \cost of ₦1,800. If the price elasticity of demand is 0.8, what is the price elasticity of supply?
A. 0.8
B. 1.8
C. 2.8
D. 3.8
Question 7
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor cons\tant at 16 units, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
The Central Bank of Nigeria (CBN) has implemented a monetary policy aimed at reducing inflation. If the money supply increases by 10% and the velocity of money remains cons\tant, what will be the effect on the price level?
A. Increase by 10%
B. Decrease by 10%
C. Remain unchanged
D. Increase by 20%
Question 9
A firm operating in a perfectly competitive market produces two goods, A and B. The production of good A is characterized by increa\sing returns to scale, while the production of good B exhibits decrea\sing returns to scale. If the firm's \cost function is given by C(q) = 2q^2 + 5q + 10, where q is the total output, what is the firm's optimal output level for good A?
A. 100 units
B. 50 units
C. 200 units
D. 300 units
Question 10
The demand function for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply function is given by Qs = 2P - 100. If the market is in equilibrium, what is the price of the product?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 11
A firm's production function is given by \( Q = 2L^{1/2}K^{1/2} \). If the firm's labor input is \( L = 4 \) and capital input is \( K = 9 \), what is the firm's output?
A. Q = 12
B. Q = 16
C. Q = 20
D. Q = 24
Question 12
A firm is producing a good with a total revenue of ₦120,000 and a total \cost of ₦80,000. If the firm's average revenue is ₦20,000, what is its average \cost?
A. ₦15,000
B. ₦18,000
C. ₦20,000
D. ₦22,000
Question 13
The government of Nigeria has implemented a policy to increase agricultural production. If the production function is Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input, what is the marginal product of labor?
A. 2
B. 4
C. 6
D. 8
Question 14
A monopolist is facing a demand curve given by Q = 100 - 2P. If the firm's marginal revenue is ₦50, what is its price?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 15
A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. If the price elasticity of demand is 0.5, what is the price elasticity of supply?
A. 0.5
B. 1.5
C. 2.5
D. 3.5

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