POST UTME OAU 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 3L^0.6K^0.4. If the firm's current input prices are w = 15 and r = 25, and it is currently producing 150 units of output, what is the firm's current profit-maximizing input combination?
A. (L, K) = (150, 150)
B. (L, K) = (200, 100)
C. (L, K) = (100, 200)
D. (L, K) = (0, 0)
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 10% and 20% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 3
A country's GDP is given by 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 consumption is $200 billion, investment is $50 billion, government sp\ending is $100 billion, exports are $150 billion, and imports are $100 billion, what is its GDP?
A. $300 billion
B. $400 billion
C. $500 billion
D. $600 billion
Question 4
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it is currently producing 100 units of output, what is the firm's current profit-maximizing input combination?
A. (L, K) = (100, 100)
B. (L, K) = (200, 50)
C. (L, K) = (50, 200)
D. (L, K) = (0, 0)
Question 5
A consumer's utility function is given by the equation U(x, y) = 2x + 3y, where x is the number of units of good X and y is the number of units of good Y. If the consumer's budget is ₦1000 and the prices of good X and good Y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. 20 units of X, 10 units of Y
B. 30 units of X, 5 units of Y
C. 40 units of X, 0 units of Y
D. 0 units of X, 20 units of Y
Question 6
A firm's revenue function is given by R(Q) = 20Q - 2Q^2. If the firm produces Q = 10 units, what is the total revenue?
A. Total revenue = ₦180
B. Total revenue = ₦190
C. Total revenue = ₦200
D. Total revenue = ₦210
Question 7
A firm's production function is given by Q = 3L^\( 1/3 \)K^\( 2/3 \). If the firm's current input prices are w_L = 15 and w_K = 30, and it currently uses 8 units of labor and 16 units of capital, calculate the firm's current total \cost. Assume that the firm's production function exhibits increa\sing returns to scale.
A. ₦2,400
B. ₦2,880
C. ₦3,360
D. ₦3,840
Question 8
A firm is considering investing in a new project with the following cash flows:\n\nYear 0: ₦100,000 \( initial investment)\nYear 1: ₦50,000 \( revenue)\nYear 2: ₦70,000 (revenue)\nYear 3: ₦30,000 (revenue)\n\nU\sing the net present value (NPV \ \) method, determine the minimum discount rate required for the firm to accept the project.
A. 10%
B. 15%
C. 20%
D. 25%
Question 9
A monopolist faces the following demand and \cost functions:\n\nDemand: Qd = 100 - 2P\nCost: C = 20 + 5Q\n\nDetermine the monopolist's profit-maximizing price and quantity.
A. ₦50, 50 units
B. ₦40, 60 units
C. ₦30, 70 units
D. ₦20, 80 units
Question 10
A country's balance of payments (BOP) accounts are as follows:\n\nCurrent Account: ₦100 billion (exports) - ₦80 billion (imports) = ₦20 billion\nCapital Account: ₦30 billion (inflows) - ₦20 billion (outflows) = ₦10 billion\n\nDetermine the country's overall BOP balance.
A. ₦30 billion surplus
B. ₦20 billion surplus
C. ₦10 billion deficit
D. ₦30 billion deficit
Question 11
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes subsidies for fertilizers and seeds. If the demand for fertilizers is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price, and the supply of fertilizers is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price, what is the equilibrium price?
A. 20
B. 30
C. 40
D. 50
Question 12
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue (MR) is 80, what is the value of x?
A. 10
B. 20
C. 30
D. 40
Question 13
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q + 5. If the firm produces Q = 5 units, what is the total \cost?
A. Total \cost = ₦135
B. Total \cost = ₦145
C. Total \cost = ₦155
D. Total \cost = ₦165
Question 14
A farmer in Nigeria decides to cultivate a new crop. The crop requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit. The selling price of the crop is ₦100 per unit. If the farmer expects to sell 2,000 units, what is the minimum price the farmer must charge to break even?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 15
A government in Nigeria decides to implement a fiscal policy to stimulate economic growth. The policy involves increa\sing government sp\ending by ₦50,000,000,000. If the government's tax revenue is ₦200,000,000,000, what is the change in the government's budget deficit?
A. ₦50,000,000,000
B. ₦100,000,000,000
C. ₦150,000,000,000
D. ₦200,000,000,000

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: