POST UTME MOUNTAIN TOP UNIVERSITY 2017 Economics | Objective

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Question 1
The demand function for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply function is given by Qs = 2P - 100, find the equilibrium price and quantity.
A. P = 50, Q = 0
B. P = 0, Q = 50
C. P = 50, Q = 50
D. P = 0, Q = 0
Question 2
A consumer's indifference curve is given 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, find the consumer's optimal bundle of x and y.
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 3
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports (X) are $100 billion, imports (M) are $80 billion, foreign investment (F) is $20 billion, and domestic investment (I) is $15 billion, what is the balance of payments?
A. $25 billion
B. $30 billion
C. $35 billion
D. $40 billion
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. The supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied. What is the equilibrium price and quantity?
A. P = 25, Q = 50
B. P = 30, Q = 70
C. P = 35, Q = 90
D. P = 40, Q = 110
Question 5
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 6
The production function for a firm is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is the output, L is the labor and K is the capital. If the firm's labor and capital are 4 and 9 respectively, find the marginal product of labor.
A. MP_L = 1/2L^\( -1/2 \)K^\( 1/2 \)
B. MP_L = L^\( -1/2 \)K^\( 1/2 \)
C. MP_L = 2L^\( -1/2 \)K^\( 1/2 \)
D. MP_L = 4L^\( -1/2 \)K^\( 1/2 \)
Question 7
A consumer has an income of ₦1000 and faces a budget constraint given by P1x + P2y = 1000. If P1 = ₦200 and P2 = ₦300, what is the consumer's optimal bundle?
A. \( x = 2, y = 3 \)
B. \( x = 3, y = 2 \)
C. \( x = 4, y = 1 \)
D. \( x = 1, y = 4 \)
Question 8
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's output is 100 units and the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, find the firm's optimal input bundle of labor and capital.
A. L = 5, K = 10
B. L = 10, K = 5
C. L = 15, K = 3
D. L = 20, K = 2
Question 9
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price and quantity?
A. \( P = 50, Q = 25 \)
B. \( P = 75, Q = 50 \)
C. \( P = 25, Q = 50 \)
D. \( P = 50, Q = 50 \)
Question 10
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \). If the country's consumption (C) is $500 billion, investment (I) is $100 billion, government sp\ending (G) is $200 billion, exports (X) are $150 billion, and imports (M) are $120 billion, what is the country's GDP?
A. $750 billion
B. $800 billion
C. $850 billion
D. $900 billion
Question 11
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied. What is the equilibrium price and quantity?
A. P = 25, Q = 50
B. P = 30, Q = 70
C. P = 35, Q = 90
D. P = 40, Q = 110
Question 12
A firm is operating in a monopoly market with a demand function given by P = 100 - 2Q. The firm's marginal \cost (MC) is $20. What is the optimal quantity to produce?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 13
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's output is 100 units and the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, find the firm's optimal input bundle of labor and capital.
A. L = 5, K = 10
B. L = 10, K = 5
C. L = 15, K = 3
D. L = 20, K = 2
Question 14
A consumer's utility function is given by U = 2x + 3y, where U is the utility and x and y are the quantities of two goods. If the consumer's budget constraint is given by 2x + 3y = 100, 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 = 50, y = 0
Question 15
A firm's production function is given by Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm wants to produce 100 units of output, how much labor and capital should it hire?
A. L = 5, K = 10
B. L = 10, K = 20
C. L = 15, K = 30
D. L = 20, K = 40

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