POST UTME MOUNTAIN TOP UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 5 units of output, what is the total \cost?
A. ₦125
B. ₦150
C. ₦175
D. ₦200
Question 2
A firm is operating on the supply curve. If the firm experiences a 10% increase in input prices, what will happen to its supply?
A. Decrease
B. Increase
C. No change
D. Uncertain
Question 3
A firm is operating on the long-run average \cost curve. If the firm experiences a 20% increase in output, what will happen to its average \cost?
A. Decrease
B. Increase
C. No change
D. Uncertain
Question 4
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is 100, investment is 50, government sp\ending is 200, exports are 300, and imports are 100, what is the country's GDP?
A. 550
B. 600
C. 650
D. 700
Question 5
An increase in the price of a commodity leads to a decrease in its demand. If the demand for the commodity is inelastic, what will happen to the total revenue of the producer?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain cons\tant
D. Total revenue will increase at a decrea\sing rate
Question 6
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the market price is P = 15, find the profit-maximizing quantity.
A. q = 5
B. q = 10
C. q = 15
D. q = 20
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of labor units is 4, how many capital units are required?
A. 2
B. 4
C. 8
D. 16
Question 8
A firm is producing a good with the following production function: Q = 2L^2 + 3K^2. If the price of labor increases by 20% and the price of capital increases by 15%, what is the new \cost-minimizing input combination?
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 15, K = 3
D. L = 3, K = 15
Question 9
A farmer in Nigeria decides to cultivate maize on a 10-hectare farm. If the production function is given by Q = 1000x^0.5, where Q is the quantity of maize produced and x is the area of land cultivated, what is the farmer's output?
A. 1000
B. 1200
C. 1500
D. 1800
Question 10
An increase in the price of a good leads to a decrease in the quantity demanded. If the demand curve is inelastic, what happens to the total revenue of the firm?
A. Total revenue increases
B. Total revenue decreases
C. Total revenue remains the same
D. Total revenue becomes negative
Question 11
A country's inflation rate is 5% per annum. If the country's central bank increases the money supply by 10% in a \single year, what will be the effect on the inflation rate?
A. The inflation rate will decrease by 5%.
B. The inflation rate will increase by 5%.
C. The inflation rate will remain unchanged.
D. The inflation rate will increase by 10%.
Question 12
A country's GDP is 100 billion naira, and its GNP is 120 billion naira. What is the value of net factor income from abroad?
A. 20 billion naira
B. 30 billion naira
C. 40 billion naira
D. 50 billion naira
Question 13
A country's balance of payments account is given by Current Account = 100 billion naira, Capital Account = 50 billion naira, and Financial Account = -20 billion naira. What is the value of the country's net foreign exchange earnings?
A. 130 billion naira
B. 140 billion naira
C. 150 billion naira
D. 160 billion naira
Question 14
A country's money supply is given by M = 1000 + 0.5Y. If the country's GDP is ₦500 billion, what is the money supply?
A. ₦250 billion
B. ₦500 billion
C. ₦750 billion
D. ₦1 trillion
Question 15
A consumer has a budget of ₦1000 to sp\end on two goods, X and Y. The price of good X is ₦200 and the price of good Y is ₦300. If the consumer sp\ends all the budget on the two goods, what is the opportunity \cost of buying one more unit of good X?
A. ₦100
B. ₦200
C. ₦300
D. ₦400

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