POST UTME NILE UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has an income of $150 and faces a price of $8 for a good. The consumer's indifference curve is given by the equation u(x,y) = 2x + 3y, where x is the quantity of the good consumed and y is the quantity of a complementary good. What is the consumer's optimal consumption bundle?
A. (15,20)
B. (20,15)
C. (25,10)
D. (30,5)
Question 2
A firm is considering a price increase due to an increase in production \costs. If the demand for the firm's product is inelastic, what will be the effect on the firm's revenue?
A. The revenue will decrease
B. The revenue will increase
C. The revenue will remain unchanged
D. The revenue will increase by 10%
Question 3
A monopolist faces a demand curve given by P = 100 - 2q. The firm's marginal \cost is MC = 10. What is the monopolist's profit-maximizing output?
A. 20
B. 30
C. 40
D. 50
Question 4
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5 per unit of labor, what is the optimal level of labor (L) that the firm should employ, given that the price of capital is $2 per unit?
A. 10
B. 20
C. 30
D. 40
Question 5
A country's balance of payments is given by the equation BOP = X - M + \( F - I \). If the country's exports are 500, imports are 300, foreign investment is 200, and domestic investment is 100, what is the country's balance of payments?
A. 100
B. 200
C. 300
D. 400
Question 6
A country's GDP is calculated as the sum of consumption, investment, government sp\ending, and net exports. If the country's GDP is $100 billion, and the government sp\ending is $20 billion, what is the sum of consumption and investment?
A. $80 billion
B. $60 billion
C. $40 billion
D. $20 billion
Question 7
A country's balance of payments is given by the following equation: BOP = X - M, where X is the exports and M is the imports. If the exports are ₦500 billion and the imports are ₦300 billion, what is the balance of payments?
A. ₦200 billion
B. ₦300 billion
C. ₦400 billion
D. ₦500 billion
Question 8
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
A. 1
B. 2
C. 3
D. 4
Question 9
A firm is operating on its long-run average \cost curve. If the firm experiences a 20% increase in output, what will be the effect on its average \cost?
A. The average \cost will decrease by 20%
B. The average \cost will increase by 20%
C. The average \cost will remain unchanged
D. The average \cost will decrease by 10%
Question 10
A country's GDP grows at a rate of 5% per annum, while its population grows at a rate of 2.5% per annum. If the current GDP is ₦1.2 trillion, what is the GDP 5 years from now?
A. ₦1.8 trillion
B. ₦2.1 trillion
C. ₦1.5 trillion
D. ₦1.0 trillion
Question 11
A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labor and H is capital. If the firm's current labor and capital are 4 and 9 respectively, what is the firm's total \cost?
A. 20
B. 30
C. 40
D. 50
Question 12
A firm faces a downward-sloping demand curve and has a cons\tant marginal \cost of production. If the firm's marginal revenue is equal to its marginal \cost, what is the optimal price and quantity of output?
A. The optimal price is the highest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
B. The optimal price is the lowest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
C. The optimal price is the price at which the demand curve intersects the marginal revenue curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
D. The optimal price is the highest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal revenue curve.
Question 13
A firm's demand function is given by Q = 100 - 2P + 5Y, where Q is the quantity demanded, P is the price, and Y is the income. If the price is ₦20 and the income is ₦50,000, what is the quantity demanded?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 14
A firm has a production function Q = 3L^0.7K^0.3. If the price of the good is $15 and the wage rate is $6 per unit of labor, what is the optimal level of labor (L) that the firm should employ, given that the price of capital is $3 per unit?
A. 15
B. 30
C. 45
D. 60
Question 15
The demand function for a product is given by p = 100 - 2q, where p is the price and q is the quantity demanded. If the supply function is given by p = 2q + 10, find the equilibrium price and quantity.
A. (20, 30)
B. (30, 20)
C. (40, 15)
D. (50, 10)

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