POST UTME LEAD CITY UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units, what is the total \cost?
A. ( C(20) = 2(20)^2 + 10(20) + 5 = 800 + 200 + 5 = 1005 )
B. ( C(20) = 2(20)^2 + 10(20) + 5 = 800 + 200 + 5 = 1005 )
C. ( C(20) = 2(20)^2 + 10(20) + 5 = 800 + 200 + 5 = 1005 )
D. ( C(20) = 2(20)^2 + 10(20) + 5 = 800 + 200 + 5 = 1005 )
Question 2
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1. If the firm's \cost function is C(x) = x^2 + 2x + 1, what is the profit function?
A. 3x^2 + 3x
B. x^2 + 3x
C. 2x^2 + 3x
D. x^2 + x
Question 3
The concept of scarcity in economics implies that the production of one good or service is limited by the availability of resources, which can be used to produce other goods or services. This is often referred to as the law of opportunity \cost. Which of the following is an example of opportunity \cost?
A. The \cost of producing a good or service
B. The benefit of producing a good or service
C. The opportunity to produce another good or service
D. The \cost of not producing a good or service
Question 4
The diagram below represents a monopolistically competitive market. If the firm increases its price, what will happen to its quantity supplied?
A. Increase
B. Decrease
C. Remain the same
D. Become negative
Question 5
In a perfectly competitive market, the supply curve is upward-sloping because
A. Firms are willing to supply more of a good as its price increases.
B. Firms are willing to supply less of a good as its price increases.
C. Firms are willing to supply the same quantity of a good regardless of its price.
D. Firms are willing to supply more of a good as its price decreases.
Question 6
A firm's revenue function is given by R(q) = 200q - 2q^2. If the firm produces 15 units, what is the revenue?
A. ( R(15) = 200(15) - 2(15)^2 = 3000 - 450 = 2550 )
B. ( R(15) = 200(15) - 2(15)^2 = 3000 - 450 = 2550 )
C. ( R(15) = 200(15) - 2(15)^2 = 3000 - 450 = 2550 )
D. ( R(15) = 200(15) - 2(15)^2 = 3000 - 450 = 2550 )
Question 7
The Nigerian economy is characterized by a high level of unemployment and underemployment. What is the likely effect of this on the country's GDP?
A. GDP will increase
B. GDP will decrease
C. GDP will remain the same
D. GDP will fluctuate
Question 8
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal \cost
B. marginal revenue
C. average \cost
D. average revenue
Question 9
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's indifference curve is given by u(x, y) = 2x + y, what is the consumer's optimal bundle?
A. (3, 6)
B. (4, 4)
C. (6, 2)
D. (8, 0)
Question 10
The concept of national income accounting in economics refers to the measurement of a country's economic activity. Which of the following is an example of a national income accounting concept?
A. Gross Domestic Product (GDP)
B. Gross National Product (GNP)
C. Net Domestic Product (NDP)
D. Net National Product (NNP)
Question 11
The National Bureau of Statistics (NBS) releases the Gross Domestic Product (GDP) of Nigeria for the year 2020. If the GDP is ₦120 trillion, what is the GDP per capita?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 12
The diagram below represents a perfectly competitive market. If the demand for the good increases, what will happen to the equilibrium price?
A. Increase
B. Decrease
C. Remain the same
D. Become negative
Question 13
A government imposes a tax of ₦5 per unit on a firm's output. The firm's revenue function is R(x) = 2x^2 + 5x + 1, and its \cost function is C(x) = 3x^2 + 2x + 5. If the firm produces 10 units, find the new total \cost.
A. ₦125
B. ₦130
C. ₦135
D. ₦140
Question 14
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm increases labor from 4 units to 9 units, and capital remains cons\tant at 16 units, what is the percentage change in output?
A. 25%
B. 50%
C. 75%
D. 100%
Question 15
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's \cost function is C(x) = 3x^2 + 2x + 5, find the break-even point.
A. \( x = \frac{-5 pm \sqrt{5^2 - 4\( 2 \ \)(1)}}{2(2)} )
B. \( x = \frac{-5 pm \sqrt{5^2 - 4\( 2 \ \)(5)}}{2(2)} )
C. \( x = \frac{-5 pm \sqrt{5^2 - 4\( 3 \ \)(1)}}{2(3)} )
D. \( x = \frac{-5 pm \sqrt{5^2 - 4\( 3 \ \)(5)}}{2(3)} )

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