POST UTME NILE UNIVERSITY 2021 Economics | Objective

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Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200K = ₦10,000, find the optimal level of labor and capital.
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 15, K = 15
D. L = 25, K = 5
Question 2
A firm's \cost function is given by C(q) = 2q^2 + 10q + 100. What is the marginal \cost when q = 5?
A. 20
B. 30
C. 40
D. 50
Question 3
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 4
The Gross Domestic Product (GDP) is a measure of the total value of all final goods and services produced within a country's borders. Which of the following is NOT included in the calculation of GDP?
A. Personal Consumption Exp\enditures
B. Gross Investment
C. Government Sp\ending
D. Imports
Question 5
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 32
C. 48
D. 64
Question 6
Determine the returns to scale for a production function Q = 2K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital, and L is labor.
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale
Question 7
A firm's production function is given by ( f(x,y) = 2x^2 + 3y^2 ). If the firm produces 10 units of output, what is the marginal product of x?
A. 4x
B. 6y
C. 8x
D. 12y
Question 8
A monopolist has a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2Q. If the firm's marginal \cost is $10, what is the firm's profit-maximizing output?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 9
The money supply in an economy is primarily controlled by the?
A. Central Bank
B. Commercial Banks
C. Government
D. Private Sector
Question 10
A firm's revenue function is given by R(x) = 3x^2 - 2x + 10. What is the elasticity of demand when x = 4?
A. 0.5
B. 1
C. 2
D. 3
Question 11
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 = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 12
A country's import demand function is given by M = 100 - 2P, where M is the quantity of imports and P is the price of imports. If the price of imports is ₦50, what is the quantity of imports?
A. 100 units
B. 200 units
C. 50 units
D. 250 units
Question 13
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 14
A firm's demand curve is downward sloping because of the law of?
A. Diminishing Marginal Utility
B. Diminishing Marginal Returns
C. Law of Supply
D. Law of Demand
Question 15
A firm's demand function for a particular good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's current price is $10, what is the firm's current quantity demanded?
A. 80
B. 90
C. 100
D. 110

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