POST UTME NOUN 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 10 units, what is the total \cost?
A. ₦150
B. ₦250
C. ₦350
D. ₦450
Question 2
A firm's demand function is given by q = 100 - 2p. If the firm produces 50 units, what is the elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 3
The concept of returns to scale in production theory refers to the relationship between the quantity of inputs and the resulting output. If a firm experiences increa\sing returns to scale, what will happen to its average \cost per unit of output?
A. The average \cost per unit of output will decrease.
B. The average \cost per unit of output will increase.
C. The average \cost per unit of output will remain cons\tant.
D. The average \cost per unit of output will fluctuate.
Question 4
A firm's production function is given by q = 2K^0.5L^0.5. If the firm wants to produce 100 units, what is the minimum \cost of production?
A. ₦500
B. ₦1000
C. ₦1500
D. ₦2000
Question 5
A country's GDP is given by the equation Y = C + I + G. If the country's consumption function is C = 100 + 0.8Y, the investment function is I = 200 + 0.2Y, and government sp\ending is G = 500, find the country's equilibrium GDP.
A. ₦1000
B. ₦1500
C. ₦2000
D. ₦2500
Question 6
Consider a consumer with a utility function U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦3 respectively, determine the optimal quantities of the two goods that the consumer will purchase.
A. (x,y) = (80,60)
B. (x,y) = (60,80)
C. (x,y) = (40,40)
D. (x,y) = (20,20)
Question 7
Agricultural production in Nigeria is characterized by a high degree of seasonality. U\sing the concept of elasticity of demand, explain why farmers in Nigeria may not benefit from price fluctuations.
A. Farmers in Nigeria have a high degree of price elasticity of supply
B. Farmers in Nigeria have a low degree of price elasticity of demand
C. Farmers in Nigeria have a high degree of price elasticity of demand
D. Farmers in Nigeria have a low degree of price elasticity of supply
Question 8
A consumer's utility function is given by u(x, y) = 2x + 3y. If the consumer has a budget of ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (10, 5)
B. (5, 10)
C. (15, 3)
D. (20, 2)
Question 9
A firm is considering two different production processes. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the selling price is ₦80 per unit, which process should the firm choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 10
Calculate the Gross National Product (GNP) of Nigeria for the year 2022, given that the Gross Domestic Product (GDP) is ₦12,500,000,000,000 and the net factor income from abroad is ₦1,200,000,000.
A. ₦13,700,000,000,000
B. ₦12,700,000,000,000
C. ₦13,200,000,000,000
D. ₦12,200,000,000,000
Question 11
Agricultural industrialization in Nigeria has been hindered by several factors. Which of the following is NOT a major constraint?
A. Lack of infrastructure
B. Inadequate funding
C. Climate change
D. High population growth rate
Question 12
A firm is considering two different production levels. At level A, the total \cost is ₦1,500,000 and the total revenue is ₦1,800,000. At level B, the total \cost is ₦2,000,000 and the total revenue is ₦2,200,000. Which production level should the firm choose?
A. Level A
B. Level B
C. Both levels are equally profitable
D. Neither level is profitable
Question 13
A firm has a production function F(Q) = 2Q^2 + 5Q. The price of the good is ₦100. Find the firm's profit-maximizing quantity and revenue.
A. 25 units, ₦2500
B. 50 units, ₦5000
C. 75 units, ₦7500
D. 100 units, ₦10000
Question 14
A monopolist faces a demand curve given by the equation \( p = 100 - 2q \). The firm's marginal \cost is ₦50. What is the monopolist's profit-maximizing quantity?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 15
A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. What is the country's national income?
A. ₦130 billion
B. ₦140 billion
C. ₦150 billion
D. ₦160 billion

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: