POST UTME MADONNA UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm produces two goods, x and y, u\sing two inputs, labor (L) and capital (K). The production function is given by x = 2L^0.5K^0.5 and y = L^0.5K^0.5. If the firm has 100 units of labor and 200 units of capital, what is the total output of the firm?
A. 1000
B. 1200
C. 1400
D. 1600
Question 2
A firm's revenue function is given by R = 2x + 3x^2, where R is revenue and x is the quantity sold. If the firm sells 10 units, what is its revenue?
A. $50
B. $60
C. $70
D. $80
Question 3
A government is considering a policy to reduce the poverty rate in the country. Which of the following policies is most likely to achieve this goal?
A. Increa\sing the minimum wage
B. Implementing a value-added tax
C. Providing subsidies to farmers
D. Investing in education and healthcare
Question 4
Suppose a firm is operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price falls from ₦100 to ₦90, what is the price elasticity of demand?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 5
A firm produces two goods, A and B, u\sing two inputs, labor (L) and capital (K). The production functions are given by Q_A = 2L + 3K and Q_B = 4L + 2K. If the firm has 10 units of labor and 8 units of capital, how many units of good A should it produce?
A. 10
B. 15
C. 20
D. 25
Question 6
A firm is operating on a long-run average \cost curve. If the firm experiences a decrease in the price of a key input, what will happen to its long-run average \cost curve?
A. It will shift to the left
B. It will shift to the right
C. It will remain unchanged
D. It will shift downwards
Question 7
A consumer has the following utility function: U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 8
A consumer's indifference curve is represented by the equation u(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. x = 60, y = 80
B. x = 80, y = 60
C. x = 100, y = 50
D. x = 50, y = 100
Question 9
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 12, and the prices of the two goods are $2 and $3 respectively, what is the consumer's optimal consumption bundle?
A. (2, 4)
B. (4, 2)
C. (3, 3)
D. (6, 0)
Question 10
A firm's production function is given by Q = 2L + 3K. If the firm's \cost function is C = 10L + 20K, what is the firm's profit-maximizing level of labor?
A. L = 5
B. L = 10
C. L = 15
D. L = 20
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue is ₦50, what is the price at which the firm will produce 60 units?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 12
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q. If the firm produces 10 units of output, what is its total \cost?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 13
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \). If the country's consumption function is C = 100 + 0.8Y, its investment function is I = 50 + 0.2Y, its government sp\ending function is G = 200, its export function is X = 500, and its import function is M = 300, what is the country's GDP?
A. ₦1500
B. ₦2000
C. ₦2500
D. ₦3000
Question 14
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
A government is considering a policy to reduce poverty in a country. Which of the following is a characteristic of this policy?
A. It is a demand-side policy.
B. It is a supply-side policy.
C. It is a fiscal policy.
D. It is a monetary policy.

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: