POST UTME NOUN 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total revenue is given by the equation \( TR = 20q - 0.5q^2 \), where ( q ) is the quantity sold. Find the quantity that maximizes revenue.
A. 10
B. 20
C. 30
D. 40
Question 2
A monopolist faces a demand curve given by \( p = 100 - 2q \). If the marginal \cost is ₦20, what is the profit-maximizing quantity?
A. 10
B. 20
C. 30
D. 40
Question 3
A consumer's indifference curve is downward sloping. What is the implication of this for the consumer's marginal rate of substitution (MRS)?
A. The MRS is cons\tant
B. The MRS is decrea\sing
C. The MRS is increa\sing
D. The MRS is zero
Question 4
A country's balance of payments (BOP) 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 BOP?
A. 100
B. 200
C. 300
D. 400
Question 5
The concept of opportunity \cost is a fundamental principle in economics that states that the value of the next best alternative that must be given up when a choice is made is the opportunity \cost. Which of the following statements best describes the concept of opportunity \cost?
A. The concept of opportunity \cost states that the value of the next best alternative that must be given up when a choice is made is the opportunity \cost.
B. The concept of opportunity \cost states that the value of the next best alternative that must be given up when a choice is made is the opportunity \cost, and that it is always equal to the \cost of the choice made.
C. The concept of opportunity \cost states that the value of the next best alternative that must be given up when a choice is made is the opportunity \cost, and that it is always greater than the \cost of the choice made.
D. The concept of opportunity \cost states that the value of the next best alternative that must be given up when a choice is made is the opportunity \cost, and that it is always less than the \cost of the choice made.
Question 6
The opportunity \cost of producing one more unit of a good is the value of the next best alternative that must be given up. This concept is closely related to the law of increa\sing opportunity \costs, which states that as the production of a good increases, the opportunity \cost of producing one more unit also increases. Which of the following statements best describes the law of increa\sing opportunity \costs?
A. The law of increa\sing opportunity \costs states that as the production of a good increases, the opportunity \cost of producing one more unit decreases.
B. The law of increa\sing opportunity \costs states that as the production of a good increases, the opportunity \cost of producing one more unit remains cons\tant.
C. The law of increa\sing opportunity \costs states that as the production of a good increases, the opportunity \cost of producing one more unit also increases.
D. The law of increa\sing opportunity \costs states that as the production of a good increases, the opportunity \cost of producing one more unit decreases and then increases.
Question 7
Consider a firm that produces two goods, A and B, u\sing two inputs, labor and capital. The production functions for the two goods are given by \( Q_A = 10L^0.5K^0.5 \) and \( Q_B = 20L^0.3K^0.7 \), where \( Q_A \) and \( Q_B \) are the quantities of goods A and B, respectively, and ( L ) and ( K ) are the quantities of labor and capital, respectively. The prices of the two goods are ₦100 and ₦200, respectively. The firm's objective is to maximize its profit. Calculate the optimal quantities of labor and capital to use.
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 50
D. L = 50, K = 200
Question 8
A government is considering a tax on a particular good. The supply curve of the good is given by Q = 100 + 2P, and the demand curve is given by Q = 200 - 3P. If the government imposes a tax of 10 on the producer, what will be the new equilibrium price and quantity?
A. P = 20, Q = 150
B. P = 30, Q = 120
C. P = 40, Q = 90
D. P = 50, Q = 60
Question 9
The following diagram shows the supply and demand curves for a commodity. If the price of the commodity is ₦100, what is the quantity demanded?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 10
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦1,500,000,000, and the values of C, I, G, X, and M are ₦500,000,000, ₦200,000,000, ₦300,000,000, ₦400,000,000, and ₦100,000,000 respectively, what is the value of X?
A. ₦400,000,000
B. ₦500,000,000
C. ₦600,000,000
D. ₦700,000,000
Question 11
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price increases from ₦50 to ₦60, what is the percentage change in quantity demanded?
A. -10%
B. -20%
C. -30%
D. -40%
Question 12
The following table shows the production \costs of a firm in a perfectly competitive market. What is the firm's profit-maximizing output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 13
Consider a small open economy with a perfectly competitive market for a particular good. The economy's demand for the good is given by the equation \( Q_d = 100 - 2P \), where \( Q_d \) is the quantity demanded and ( P ) is the price in naira. The supply of the good is given by the equation \( Q_s = 50 + 3P \), where \( Q_s \) is the quantity supplied. Assuming that the economy is initially in equilibrium, calculate the change in the price of the good if the government imposes a 10% tariff on imports of the good.
A. ₦5
B. ₦10
C. ₦15
D. ₦20
Question 14
A monopolist produces a good with a cons\tant marginal \cost of ₦10 per unit. The inverse demand function for the good is given by \( P = 100 - Q \), where ( P ) is the price and ( Q ) is the quantity sold. Calculate the monopolist's profit-maximizing quantity and price.
A. Q = 40, P = ₦60
B. Q = 30, P = ₦70
C. Q = 20, P = ₦80
D. Q = 10, P = ₦90
Question 15
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is 500, investment is 200, government sp\ending is 300, exports are 400, and imports are 200, what is the country's GDP?
A. 1000
B. 1200
C. 1500
D. 1800

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