POST UTME MADONNA UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is ₦50, what is the firm's optimal price?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 2
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's revenue is ₦10,000, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 5
Question 3
A firm operating in a perfectly competitive market is characterized by which of the following?
A. Monopolistic competition
B. Perfect competition
C. Oligopoly
D. Monopoly
Question 4
A country's GDP grows at a rate of 5% per annum, while its population grows at a rate of 2% per annum. Assuming that the growth rate of GDP is directly proportional to the growth rate of population, calculate the elasticity of GDP with respect to population.
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 5
A central bank increases the money supply by 10%. What is the expected effect on the price level?
A. 10% increase
B. 5% increase
C. 5% decrease
D. 10% decrease
Question 6
The government of a country imposes a tax on a commodity, which leads to a decrease in the supply of the commodity. If the demand for the commodity is given by the equation Qd = 100 - 2P and the supply of the commodity is given by the equation Qs = 50 + 2P, what is the new equilibrium price and quantity after the tax is imposed?
A. P = 50, Q = 75
B. P = 60, Q = 80
C. P = 70, Q = 85
D. P = 80, Q = 90
Question 7
A firm's \cost function is given by C = 100L + 200K, where C is \cost, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 10% and 20% respectively, what is the percentage change in \cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 8
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the value of the country's net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 9
A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. What is the country's national income?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 10
The government of Nigeria has implemented a policy to increase the production of rice by 20% in the next year. If the current production level is 10 million metric tons, what is the expected increase in the value of rice production?
A. ₦20 billion
B. ₦40 billion
C. ₦60 billion
D. ₦80 billion
Question 11
A country's GDP grows at a rate of 5% per annum, while its population grows at a rate of 2% per annum. Assuming that the growth rate of GDP is directly proportional to the growth rate of population, calculate the elasticity of GDP with respect to population.
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 12
The demand for a commodity 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 13
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 10, y = 40
Question 14
The production function for a firm is given by q = 2K^0.5. If the firm's capital is ₦100,000, what is the output?
A. 10
B. 20
C. 30
D. 40
Question 15
A firm's revenue function is given by R(q) = 50q. If the firm produces 10 units of output, what is the total revenue?
A. ₦500
B. ₦600
C. ₦700
D. ₦800

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: