POST UTME LEAD CITY UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 10% and 20%, respectively, what will be the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the firm's current output level?
A. 24
B. 32
C. 40
D. 48
Question 3
The Central Bank of Nigeria (CBN) uses the following instruments to implement monetary policy:
A. Open Market Operations (OMO), Reserve Requirements, and Discount Rate
B. Open Market Operations (OMO), Reserve Requirements, and Quantitative Ea\sing
C. Reserve Requirements, Discount Rate, and Quantitative Ea\sing
D. Open Market Operations (OMO), Discount Rate, and Fiscal Policy
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 10% and 20%, respectively, what will be the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 5
Consider a closed economy with a \single good and service. If the government imposes a lump-sum tax on households, what will be the effect on the economy's GDP?
A. GDP will decrease
B. GDP will increase
C. GDP will remain unchanged
D. GDP will be unaffected
Question 6
The diagram below shows the supply and demand curves for a commodity. If the price of the commodity is P2, what is the equilibrium quantity?
A. Q1
B. Q2
C. Q3
D. Q4
Question 7
The following graph shows the demand and supply curves for a good. What is the equilibrium price of the good?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 8
A firm has a total revenue function given by TR = 100Q - 2Q^2. If the firm's total \cost function is TC = 50Q + 10Q^2, calculate the profit-maximizing quantity and price.
A. Q = 10, P = ₦50
B. Q = 20, P = ₦100
C. Q = 30, P = ₦150
D. Q = 40, P = ₦200
Question 9
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 marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
A. 1
B. 2
C. 3
D. 4
Question 10
A central bank is considering an open market operation to increase the money supply in the economy. If the central bank buys $100 million worth of government securities from commercial banks, what is the expected increase in the money supply?
A. $50 million
B. $75 million
C. $100 million
D. $125 million
Question 11
A firm has a production function given by Q = 2L + 3K, where L is labor and K is capital. If the firm's \cost function is C = 10L + 20K, calculate the marginal product of labor and the marginal product of capital.
A. MPL = 2, MPK = 3
B. MPL = 3, MPK = 2
C. MPL = 4, MPK = 1
D. MPL = 1, MPK = 4
Question 12
A firm's demand curve is given by Qd = 100 - 2P, and the supply curve is given by Qs = 2P - 50. If the price is initially set at 25, what will be the equilibrium quantity?
A. 25
B. 50
C. 75
D. 100
Question 13
The diagram below shows the production possibilities frontier (PPF) for a country. If the country is currently producing at point A, what is the opportunity \cost of producing one more unit of good X?
A. 1 unit of good Y
B. 2 units of good Y
C. 3 units of good Y
D. 4 units of good Y
Question 14
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 100, and its marginal \cost (MC) is 80, what is the firm's optimal output level?
A. 200 units
B. 250 units
C. 300 units
D. 350 units
Question 15
A firm is producing a good u\sing the production function Q = 3L^0.5K^0.5. If the firm wants to increase its output by 25% and the labor is increased by 15%, what is the required percentage increase in capital?
A. 5%
B. 10%
C. 15%
D. 20%

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