POST UTME LAUTECH 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government imposes a tax on a particular good. What is the likely effect on the supply of that good?
A. The supply of the good will increase.
B. The supply of the good will decrease.
C. The supply of the good will remain unchanged.
D. The supply of the good will fluctuate randomly.
Question 2
A country's trade balance is in deficit. What is the likely effect on the country's exchange rate?
A. The exchange rate will appreciate.
B. The exchange rate will depreciate.
C. The exchange rate will remain unchanged.
D. The exchange rate will fluctuate randomly.
Question 3
A firm operates in a monopoly market. If the firm's demand function is given by Q = 100 - 2P and the firm's marginal \cost is $10, what is the firm's profit-maximizing price?
A. $20
B. $30
C. $40
D. $50
Question 4
A government imposes a tax on a particular good. What is the likely effect on the demand for that good?
A. The demand for the good will increase.
B. The demand for the good will decrease.
C. The demand for the good will remain unchanged.
D. The demand for the good will fluctuate randomly.
Question 5
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 price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200H = 10000, find the optimal level of labor and capital that maximizes output.
A. L = 100, H = 50
B. L = 50, H = 100
C. L = 100, H = 100
D. L = 50, H = 50
Question 6
The government of a country imposes a tax on a commodity, which increases the price of the commodity by 20%. If the demand for the commodity is given by Qd = 100 - 2P and the supply is given by Qs = 2P + 10, find the deadweight loss of the tax.
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 7
A firm produces a commodity u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L + 3K. If the firm has 10 units of labor and 8 units of capital, find the marginal product of labor and the marginal product of capital.
A. 2, 3
B. 3, 2
C. 4, 5
D. 5, 4
Question 8
A firm has a total revenue function of \( TR = 200x - 5x^2 \) and a total \cost function of \( TC = 100x + 10x^2 \). Find the profit-maximizing output level.
A. 20 units
B. 30 units
C. 25 units
D. 40 units
Question 9
A monopolist faces a demand curve that is downward sloping. What is the effect of an increase in the price of the product on the quantity demanded?
A. Increase in quantity demanded
B. Decrease in quantity demanded
C. No change in quantity demanded
D. Increase in price
Question 10
A country's money supply is increased by the central bank. What is the likely effect on the price level?
A. The price level will decrease.
B. The price level will increase.
C. The price level will remain unchanged.
D. The price level will fluctuate randomly.
Question 11
A country's export supply function is given by \( ES = 50 + 2P \), where P is the price of the exported good. If the price of the exported good is $60, what is the quantity supplied?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 12
A country's trade deficit is financed by borrowing from abroad. What is the likely effect on the country's exchange rate?
A. The exchange rate will appreciate.
B. The exchange rate will depreciate.
C. The exchange rate will remain unchanged.
D. The exchange rate will fluctuate randomly.
Question 13
A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods. The consumer's utility function is given by U = 2x + 3y. Find the optimal quantities of x and y that maximize utility.
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 25, y = 25
D. x = 40, y = 10
Question 14
The government of a country imposes a tax on a commodity, which increases the price of the commodity by 20%. If the demand for the commodity is given by Qd = 100 - 2P and the supply is given by Qs = 2P + 10, find the new equilibrium price and quantity.
A. ₦20, 40 units
B. ₦30, 60 units
C. ₦40, 80 units
D. ₦50, 100 units
Question 15
A country's government decides to implement a new tax on imports to reduce its budget deficit. If the tax rate is 15% and the import value is ₦100 billion, what is the amount of tax collected?
A. ₦15 billion
B. ₦1.5 billion
C. ₦15 million
D. ₦1.5 million

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