POST UTME MADONNA UNIVERSITY 2023 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, where Q is output, L is labor, and K is capital. If the firm increases labor from 100 to 121 units and capital from 100 to 121 units, calculate the percentage change in output.
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
A firm is operating in a perfectly competitive market. If the market price is ₦100 and the firm's marginal \cost is ₦80, what will be the firm's profit-maximizing output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 3
A government imposes a tax of ₦10 on every unit of a good. The pre-tax price of the good is ₦50. What is the new price of the good after the tax is imposed?
A. ₦55
B. ₦60
C. ₦65
D. ₦70
Question 4
The demand function for a product is given by Qd = 100 - 2P + 3Y. If the price of the product is ₦20 and the income of the consumer is ₦500, what is the quantity demanded?
A. 50
B. 60
C. 70
D. 80
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases from 4 to 9 units, and its capital (K) remains cons\tant at 16 units, what is the percentage change in output?
A. 25%
B. 30%
C. 35%
D. 40%
Question 6
A country's GNP is ₦1,500,000,000,000. If the country's net factor income from abroad is ₦200,000,000,000, what will be the country's GDP?
A. ₦1,700,000,000,000
B. ₦1,600,000,000,000
C. ₦1,500,000,000,000
D. ₦1,400,000,000,000
Question 7
A country's GDP at market price is ₦1,000,000,000,000, and its GDP at factor \cost is ₦900,000,000,000. Calculate the value of indirect taxes.
A. ₦100,000,000,000
B. ₦200,000,000,000
C. ₦300,000,000,000
D. ₦400,000,000,000
Question 8
The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation facilities, and increa\sing the availability of fertilizers. However, the policy has also led to an increase in the price of rice, which has affected the purcha\sing power of the poor. Analyze the impact of the policy on the economy, considering the law of demand and supply.
A. The policy has increased the production of rice, but has also led to an increase in the price of rice, which has affected the purcha\sing power of the poor.
B. The policy has decreased the production of rice, but has also led to a decrease in the price of rice, which has improved the purcha\sing power of the poor.
C. The policy has increased the production of rice, but has also led to a decrease in the price of rice, which has improved the purcha\sing power of the poor.
D. The policy has decreased the production of rice, but has also led to an increase in the price of rice, which has affected the purcha\sing power of the poor.
Question 9
A country's balance of payments (BOP) accounts show a trade deficit of $10 billion and a capital account surplus of $5 billion. What is the country's overall BOP position?
A. ₦5 billion surplus
B. ₦10 billion deficit
C. ₦15 billion surplus
D. ₦20 billion deficit
Question 10
A country's GDP is ₦1,000,000,000,000. If the government decides to increase the price of a commodity by 10%, what will be the effect on the GDP deflator?
A. 10%
B. 5%
C. 0%
D. 15%
Question 11
A firm's demand curve is given by Q = 100 - 2P, and the supply curve is given by Q = 2P - 100. Find the equilibrium price and quantity.
A. ₦50, 150
B. ₦75, 125
C. ₦100, 100
D. ₦125, 75
Question 12
A firm's demand function is given by Q = 100 - 2P + 3Y, where Q is the quantity demanded, P is the price, and Y is the income. If the price elasticity of demand is -2 and the income elasticity of demand is 3, what is the cross-price elasticity of demand?
A. 6
B. -6
C. 0
D. 4
Question 13
A firm's marginal revenue product of labor is given by MRP_L = 100L - 2L^2. If the firm hires 5 units of labor, what is the marginal revenue product of the 6th unit of labor?
A. 480
B. 500
C. 520
D. 540
Question 14
A firm is operating in a monopoly market. If the firm's demand function is Q = 100 - 2P and the firm's marginal revenue function is MR = 200 - 2Q, what will be the firm's profit-maximizing output?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what is the required percentage increase in labor and capital?
A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
C. 15% increase in labor and 15% increase in capital
D. 25% increase in labor and 25% increase in capital

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