POST UTME NOUN 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm produces two products, A and B, u\sing two inputs, labor and capital. The production function for product A is given by Q_A = 10L^0.5K^0.5, where Q_A is the quantity of product A produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 200 units of capital, find the quantity of product A produced.
A. 100
B. 200
C. 300
D. 400
Question 2
A central bank increases the money supply in an economy by 10%. What is the effect on the price level?
A. Price level increases by 10%
B. Price level remains unchanged
C. Price level decreases by 10%
D. Price level increases by 20%
Question 3
A firm's production function is Q = 2L^0.5K^0.5, and its \cost function is C(L,K) = 2L + 3K. If the price of the good is $10, what is the optimal level of labor and capital to maximize profits?
A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 9
D. L = 9, K = 16
Question 4
A consumer's indifference curve is downward sloping and convex to the origin. What does this imply about the consumer's preferences?
A. The consumer prefers more of good X to good Y.
B. The consumer prefers more of good Y to good X.
C. The consumer is indifferent between good X and good Y.
D. The consumer prefers a bundle with more of both goods X and Y.
Question 5
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm is producing at a level of output where MR > MC, what is the firm's optimal output level?
A. The firm is producing at a level of output where MR = MC.
B. The firm is producing at a level of output where MR > MC.
C. The firm is producing at a level of output where MR < MC.
D. The firm is producing at a level of output where MR = MC and MR > MC.
Question 6
The demand function for a product is given by Q = 100 - 2P. If the price elasticity of demand is 0.5, what is the price at which the quantity demanded is 50 units?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its net foreign income?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 8
A firm's total revenue function is given by TR = 100Q - 2Q^2. If the firm produces 20 units of output, what is its total revenue?
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 9
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 0.5, find the price at which the quantity demanded is 60 units.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 10
A firm's demand curve is given by Q = 100 - 2P and its supply curve is given by Q = 2P - 100. If the firm's marginal revenue is given by MR = 200 - 2Q and its marginal \cost is given by MC = 50 + 2Q, find the firm's profit-maximizing quantity and price.
A. ₦75
B. ₦100
C. ₦125
D. ₦150
Question 11
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). If the country's consumption (C) is ₦100 billion, investment (I) is ₦50 billion, government sp\ending (G) is ₦75 billion, exports (X) are ₦200 billion, and imports (M) are ₦150 billion, what is the country's GDP?
A. ₦275 billion
B. ₦325 billion
C. ₦375 billion
D. ₦425 billion
Question 12
A firm has a production function Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 200 units of capital, find the marginal product of labor.
A. 5
B. 10
C. 15
D. 20
Question 13
A monopolist faces a demand curve given by P = 100 - Q. The monopolist's \cost function is given by C(Q) = 20Q + 100. Find the monopolist's profit-maximizing quantity and price.
A. Q = 20, P = 80
B. Q = 40, P = 60
C. Q = 60, P = 40
D. Q = 80, P = 20
Question 14
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the firm's \cost function is C(L,K) = 2L + 3K, what is the optimal level of labor and capital to maximize profits?
A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 9
D. L = 9, K = 16
Question 15
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 $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $30 billion, exports are $40 billion, and imports are $20 billion, find the country's GDP.
A. $100 billion
B. $120 billion
C. $80 billion
D. $60 billion

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