POST UTME MADONNA 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 current input levels are L = 16 and K = 9, what is the total product of labor (TPL) at these input levels?
A. 32
B. 64
C. 128
D. 256
Question 2
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12 and the price of x is 2, what is the optimal level of y?
A. 2
B. 4
C. 6
D. 8
Question 3
The concept of returns to scale in production theory refers to the change in the output of a firm as its inputs are increased, while holding all other factors cons\tant. Which of the following statements best describes the relationship between returns to scale and the law of diminishing marginal productivity?
A. Returns to scale and the law of diminishing marginal productivity are mutually exclusive concepts.
B. Returns to scale and the law of diminishing marginal productivity are related, but not directly equivalent.
C. Returns to scale is a special case of the law of diminishing marginal productivity.
D. The law of diminishing marginal productivity is a necessary condition for returns to scale.
Question 4
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 price at which the quantity demanded is 60?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A country's economic growth is measured by its GDP. However, GDP does not take into account the following factor:
A. The value of the country's currency.
B. The country's population growth rate.
C. The country's income inequality.
D. The value of the country's natural resources.
Question 6
A firm is a pure monopolist with a demand function given by Q = 100 - 2P. If the firm's marginal \cost is 10, what is the optimal price and quantity?
A. P = 40, Q = 60
B. P = 50, Q = 50
C. P = 60, Q = 40
D. P = 70, Q = 30
Question 7
A firm's demand curve is given by Q = 100 - 2P and its \cost function is C = 200 + 5Q. If the firm produces 20 units, what is the profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 8
A central bank uses an open market operation to increase the money supply. What is the effect on the interest rate?
A. The interest rate will increase.
B. The interest rate will decrease.
C. The interest rate will remain cons\tant.
D. The effect on the interest rate is ambiguous.
Question 9
A firm's production function is represented by the equation: Q = 2L + 3K. If the firm's labor input is 4 units and its capital input is 2 units, what is the total output?
A. 8
B. 10
C. 12
D. 14
Question 10
A country with a perfectly competitive market structure has a demand curve that is downward sloping. What is the implication of this for the firm's revenue?
A. The firm's revenue will increase as the price of the good increases.
B. The firm's revenue will decrease as the price of the good increases.
C. The firm's revenue will remain cons\tant as the price of the good increases.
D. The firm's revenue will increase as the price of the good decreases.
Question 11
In a perfectly competitive market, the supply curve is downward sloping because of the law of increa\sing opportunity \cost. What is the opportunity \cost of producing one more unit of a good?
A. The \cost of producing the next unit of the good
B. The \cost of producing the previous unit of the good
C. The \cost of producing the last unit of the good
D. The \cost of producing the first unit of the good
Question 12
Agricultural development in Nigeria has been hindered by several factors, including lack of access to credit and limited market information. Which of the following policies would be most effective in addres\sing these issues?
A. Providing subsidies to farmers to reduce production \costs.
B. Establishing a national agricultural bank to provide credit to farmers.
C. Creating a national agricultural marketing board to provide market information to farmers.
D. Implementing a policy of price controls to stabilize agricultural prices.
Question 13
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. Find the price elasticity of demand at x = 50.
A. 0.5
B. 1.0
C. 2.0
D. -1.0
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. What is the marginal product of labor?
A. \frac{L^{0.5}K^{0.5}}{2L}
B. \frac{L^{0.5}K^{0.5}}{2K}
C. \frac{L^{0.5}K^{0.5}}{2}
D. \frac{L^{0.5}K^{0.5}}{2L^2}
Question 15
A consumer's demand function for a good is given by Q = 100 - 2P. If the price of the good is 20, what is the consumer's willingness to pay?
A. 20
B. 30
C. 40
D. 50

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