POST UTME LEAD CITY UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand curve is given by the equation Qd = 100 - 2P. What is the price elasticity of demand at a price of 20?
A. 0.5
B. 1
C. 2
D. -1
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 9 units, and holds capital input cons\tant at 16 units, what is the new level of output?
A. 24
B. 36
C. 48
D. 60
Question 3
A consumer's budget constraint is given by 2x + 3y = $100. If the consumer's income is $100 and the prices of x and y are $5 and $10 respectively, what is the consumer's optimal bundle?
A. x = 20, y = 10
B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25
Question 4
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's income is $100 and the prices of x and y are $5 and $10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 5
Question 5
A firm's demand function is given by \( Q = 100 - 2P \) and the supply function is given by \( Q = 2P - 10 \). Find the elasticity of demand at a price of ₦20.
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 6
A country's balance of payments is given by the following table:\n\n| Item | 2020 | 2021 |\n| --- | --- | --- |\n| Exports | ₦1000 | ₦1200 |\n| Imports | ₦1500 | ₦1800 |\n| Balance | ₦-500 | ₦-600 |\n\nWhat is the country's balance of payments in 2021?
A. ₦-600
B. ₦-500
C. ₦-400
D. ₦-300
Question 7
A monopolist faces a demand curve given by \( P = 100 - 2Q \) and a marginal \cost curve given by \( MC = 10 + 2Q \). Find the profit-maximizing quantity and price.
A. Q = 20, P = 80
B. Q = 15, P = 85
C. Q = 25, P = 75
D. Q = 30, P = 70
Question 8
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). What does the letter 'C' represent in this formula?
A. Consumption
B. Investment
C. Government sp\ending
D. Net exports
Question 9
In the context of agricultural development in Nigeria, what is the primary factor limiting the adoption of mechanized farming practices?
A. Limited access to credit facilities
B. High \cost of machinery and equipment
C. Lack of technical expertise
D. Inadequate infrastructure
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm wants to increase its output by 20%, what is the percentage change in labor required, assuming that the capital remains cons\tant?
A. 10%
B. 15%
C. 20%
D. 25%
Question 11
A firm is producing a good at a level where the marginal revenue (MR) is greater than the marginal \cost (MC). Explain why the firm is maximizing its profit.
A. The firm is producing at a level where the average revenue (AR) is greater than the average \cost (AC).
B. The firm is producing at a level where the total revenue (TR) is greater than the total \cost (TC).
C. The firm is producing at a level where the marginal revenue (MR) is less than the marginal \cost (MC).
D. The firm is producing at a level where the marginal revenue (MR) is equal to the marginal \cost (MC).
Question 12
A farmer produces wheat and maize. The production functions are given by \( Q_w = 100 - 2L \) and \( Q_m = 50 + 3L \). If the farmer has 20 units of labor, find the optimal allocation of labor between wheat and maize.
A. L = 10, Q_w = 80, Q_m = 70
B. L = 15, Q_w = 70, Q_m = 85
C. L = 20, Q_w = 60, Q_m = 100
D. L = 25, Q_w = 50, Q_m = 115
Question 13
A country's trade balance is given by TB = X - M. If the country's exports are $100 billion and its imports are $80 billion, what is the trade balance?
A. $20 billion
B. $30 billion
C. $40 billion
D. $50 billion
Question 14
A country's balance of payments account shows a trade deficit of $100 million. What does this indicate?
A. The country is experiencing economic growth
B. The country is experiencing economic decline
C. The country is experiencing a trade surplus
D. The country is experiencing a trade deficit
Question 15
The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied when the price increases by 5%?
A. 2.5%
B. 5%
C. 7.5%
D. 10%

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