POST UTME LAUTECH 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering the production of two goods, X and Y. The production function for good X is given by Q_X = 2L^0.5K^0.5, where L is labor and K is capital. The production function for good Y is given by Q_Y = 3L^0.2K^0.8. If the firm has 100 units of labor and 200 units of capital, what is the ratio of the marginal product of labor with respect to good X to the marginal product of labor with respect to good Y?
A. 1:3
B. 2:3
C. 3:2
D. 1:2
Question 2
A firm is considering the production of two goods, X and Y. The production function for good X is given by Q_X = 2L^0.5K^0.5, where L is labor and K is capital. The production function for good Y is given by Q_Y = 3L^0.2K^0.8. If the firm has 100 units of labor and 200 units of capital, what is the ratio of the total product of labor with respect to good X to the total product of labor with respect to good Y?
A. 1:3
B. 2:3
C. 3:2
D. 1:2
Question 3
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w_L = 10 and w_K = 20, and it is currently producing 4 units of output, what is the firm's current marginal \cost of production?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 4
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal level of x?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 5
A firm is producing a good with a production function Q = 2L^2 + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm is currently producing 100 units of the good and wants to increase production by 20%, what is the required increase in labor input?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 6
A monopolist faces a demand curve given by P = 100 - 2Q and a marginal revenue curve given by MR = 50 - 2Q. If the firm's marginal \cost is cons\tant at 20, what is the profit-maximizing quantity and price?
A. Quantity = 20, Price = 60
B. Quantity = 15, Price = 70
C. Quantity = 25, Price = 50
D. Quantity = 10, Price = 80
Question 7
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer has a budget of ₦100 and the prices of the two goods are ₦20 and ₦30 respectively, what is the consumer's optimal bundle?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 8
The law of diminishing marginal utility states that as the consumption of a good increases, the marginal utility derived from each additional unit of the good
A. increases
B. decreases
C. remains cons\tant
D. becomes negative
Question 9
A firm has a production function given by \( Q = 2L^{0.5}K^{0.5} \). If the firm has 100 units of labor and 50 units of capital, calculate the marginal product of labor.
A. 0.5
B. 1
C. 1.5
D. 2
Question 10
A firm's demand function is given by Q = 100 - 2P and its \cost function is C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. ₦40, 40 units
B. ₦60, 30 units
C. ₦80, 20 units
D. ₦100, 10 units
Question 11
A firm is producing a good with the following production function: Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is $10 per hour and the price of capital is $20 per hour, and the firm is currently producing 100 units of the good, what is the total product of labor?
A. The total product of labor is 200 units.
B. The total product of labor is 300 units.
C. The total product of labor is 400 units.
D. The total product of labor is 500 units.
Question 12
A country's balance of payments is given by the following equations: X = 100 + 2Y, M = 50 + Y, and B = 20 + 0.5X. Find the equilibrium values of Y and B.
A. Y = 50, B = 40
B. Y = 60, B = 50
C. Y = 70, B = 60
D. Y = 80, B = 70
Question 13
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.
A. 20 units, ₦80
B. 30 units, ₦60
C. 40 units, ₦40
D. 50 units, ₦20
Question 14
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. (10, 20)
B. (20, 10)
C. (15, 15)
D. (5, 5)
Question 15
The government of Nigeria has set a target of increa\sing the country's industrial production by 15% within the next 3 years. If the current industrial production is ₦150 billion, what is the expected increase in production?
A. ₦22.5 billion
B. ₦25 billion
C. ₦27.5 billion
D. ₦30 billion

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