POST UTME LEAD CITY UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total revenue (TR) is given by the equation TR = P × Q, where P is the price and Q is the quantity sold. If the price elasticity of demand is unit elastic, what is the relationship between the percentage change in price and the percentage change in quantity demanded?
A. Percentage change in price is equal to the percentage change in quantity demanded
B. Percentage change in price is greater than the percentage change in quantity demanded
C. Percentage change in price is less than the percentage change in quantity demanded
D. Percentage change in price is inversely proportional to the percentage change in quantity demanded
Question 2
The following diagram shows the demand and supply curves for a market. What is the equilibrium price of the good?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 3
The production function is given by Q = 2L^0.5K^0.5. If the price of labor (w) is ₦100 and the price of capital (r) is ₦50, what is the \cost-minimizing level of labor (L)?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 4
A firm has a total revenue function given by TR = 100Q - Q^2. If the fixed \cost is ₦500, what is the profit-maximizing price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
The following table shows the production \costs for a firm. What is the marginal \cost (MC) at a level of output of 10 units?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 6
The following table shows the production \costs for a firm producing two goods, X and Y. What is the total fixed \cost of producing 100 units of good X?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 7
A country's GDP is calculated as the sum of all final goods and services produced within its borders. If a firm imports raw materials worth ₦100,000 and produces a final good worth ₦200,000, what is the contribution of this firm to the country's GDP?
A. ₦0
B. ₦100,000
C. ₦200,000
D. ₦300,000
Question 8
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦300 billion, calculate the country's GDP.
A. ₦1.5 trillion
B. ₦1.6 trillion
C. ₦1.7 trillion
D. ₦1.8 trillion
Question 9
Consider a pure monopoly market with a downward-sloping demand curve. If the monopolist increases the price of the product, what happens to the quantity demanded?
A. Quantity demanded increases
B. Quantity demanded decreases
C. Quantity demanded remains unchanged
D. Quantity demanded becomes infinite
Question 10
The following diagram shows the production possibilities frontier (PPF) for a country. What is the opportunity \cost of producing 100 units of good X?
A. 50 units of good Y
B. 75 units of good Y
C. 100 units of good Y
D. 125 units of good Y
Question 11
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 leads to a trade-off between different goods or services. Which of the following is a correct example of a trade-off?
A. A farmer must choose between growing wheat or corn due to limited land.
B. A consumer must choose between buying a new car or a new house due to limited budget.
C. A company must choose between investing in research and development or expanding its marketing efforts due to limited resources.
D. A government must choose between increa\sing military sp\ending or investing in education due to limited budget.
Question 12
The Central Bank of Nigeria (CBN) uses monetary policy tools to control inflation. Which of the following is NOT a monetary policy tool?
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Fiscal Policy
D. Capital Controls
Question 13
The following table shows the national income accounts for a country. What is the value of the country's GDP?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 14
The government of Nigeria has introduced a new tax policy to increase revenue. The policy includes a 10% increase in the value-added tax (VAT) rate. Assuming the demand for goods is elastic, what will be the effect of the tax increase on the revenue collected?
A. The revenue collected will increase by 10%
B. The revenue collected will decrease by 10%
C. The revenue collected will remain the same
D. The revenue collected will increase by 20%
Question 15
A monopolist faces a demand curve given by D(p) = 100 - 2p and a \cost function given by C(q) = 2q^2 + 5q + 10. U\sing the marginal revenue and marginal \cost approach, what is the monopolist's optimal output?
A. 10
B. 20
C. 30
D. 40

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