POST UTME LAUTECH 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's budget constraint is given by the equation 5x + 10y = 100, where x is the quantity of good X consumed, and y is the quantity of good Y consumed. If the consumer's utility function is u(x,y) = 2x + 3y, what is the consumer's optimal consumption bundle?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 25
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, find the optimal input combination.
A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 0, K = 0
Question 3
A firm's \cost function is given by C(x) = 2x^2 + 5x + 10, where x is the number of units produced. If the firm's marginal \cost function is MC(x) = 4x + 5, find the value of x that minimizes \cost.
A. 5
B. 10
C. 15
D. 20
Question 4
A firm is considering investing in a new project with a net present value (NPV) of ₦100,000 and a required rate of return of 10%. What is the present value of the firm's expected future cash flows from the project?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 5
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the price of the good is P = 10 and the wage rate is W = 5, calculate the optimal level of labor \( L* \) and capital \( K* \) u\sing the first-order conditions for profit maximization.
A. \( L^* = 100, K^* = 100 \)
B. \( L^* = 50, K^* = 50 \)
C. \( L^* = 200, K^* = 200 \)
D. \( L^* = 25, K^* = 25 \)
Question 6
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is the value of exports, M is the value of imports, F is the value of foreign investment, and I is the value of domestic investment. If the country's balance of payments is in surplus by ₦100 billion, and the value of exports is ₦500 billion, the value of imports is ₦300 billion, the value of foreign investment is ₦200 billion, and the value of domestic investment is ₦150 billion, what is the value of X?
A. ₦550 billion
B. ₦600 billion
C. ₦650 billion
D. ₦700 billion
Question 7
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y, where u is the utility function, x is the quantity of good X consumed, and y is the quantity of good Y consumed. If the consumer's income is $100, and the prices of good X and good Y are $5 and $10 respectively, what is the consumer's optimal consumption bundle?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 25
Question 8
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. 50 units, ₦150
B. 75 units, ₦120
C. 100 units, ₦100
D. 125 units, ₦80
Question 9
A consumer's budget constraint is given by 2X + 3Y = 12. If the price of X is ₦2 and the price of Y is ₦3, find the optimal consumption bundle.
A. X = 2, Y = 4
B. X = 4, Y = 2
C. X = 6, Y = 0
D. X = 0, Y = 4
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 100 units of output, and the wage rate is $10 per hour, and the rental rate of capital is $20 per hour, what is the optimal combination of labor and capital?
A. L = 10, K = 10
B. L = 20, K = 5
C. L = 5, K = 20
D. L = 15, K = 15
Question 11
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y, where u is the utility function, x is the quantity of good X consumed, and y is the quantity of good Y consumed. If the consumer's income is $100, and the prices of good X and good Y are $5 and $10 respectively, what is the consumer's optimal consumption bundle?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 25
Question 12
A firm's marginal revenue is given by the equation MR = 100 - 2x, where x is the number of units sold. If the firm sells 20 units, what is its marginal revenue?
A. \₦80
B. \₦90
C. \₦100
D. \₦110
Question 13
A country is experiencing a recession with a GDP growth rate of -2%. If the country's inflation rate is 5%, what is the likely effect on the country's real GDP?
A. The real GDP will increase by 3%.
B. The real GDP will decrease by 7%.
C. The real GDP will remain unchanged.
D. The real GDP will increase by 1%.
Question 14
The supply curve for a firm is given by the equation Qs = 2P + 10, where P is the price. If the firm produces 10 units, what is the price it will charge?
A. \₦10
B. \₦20
C. \₦30
D. \₦40
Question 15
A firm is considering a new marketing strategy that involves increa\sing its adverti\sing budget by 20%. If the firm's current adverti\sing budget is ₦500,000, what is the new adverti\sing budget?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000

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