POST UTME OAU 2020 Economics | Objective

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Question 1
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 firm produces 10,000 units, what will be the total \cost of production for each process?
A. Process A: ₦1,500,000; Process B: ₦1,200,000
B. Process A: ₦1,200,000; Process B: ₦1,500,000
C. Process A: ₦1,000,000; Process B: ₦1,400,000
D. Process A: ₦1,400,000; Process B: ₦1,000,000
Question 2
A firm's revenue function is given by R(P) = 100P - 2P^2. Find the price that maximizes revenue.
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 3
A consumer's utility function is given by \( U = 2x + 3y \), where x and y are the quantities of two goods consumed. If the consumer's budget constraint is \( 10x + 5y = 100 \), what is the consumer's optimal level of x and y?
A. \( x = 5, y = 10 \)
B. \( x = 10, y = 5 \)
C. \( x = 15, y = 3 \)
D. \( x = 20, y = 2 \)
Question 4
The government of a country imposes a tax on a particular good. The supply curve for the good is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the tax is ₦10 per unit, what is the new supply curve?
A. Q = 90 + 2P
B. Q = 100 + 2P
C. Q = 110 + 2P
D. Q = 120 + 2P
Question 5
A country's inflation rate is 5% per annum. If the nominal interest rate is 10% per annum, what is the real interest rate?
A. 5%
B. 6%
C. 7%
D. 8%
Question 6
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, what is the price at which the quantity demanded is 60?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is given by MC = 10 + 2Q. What is the monopolist's profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. ₦200, 50
B. ₦250, 75
C. ₦300, 100
D. ₦350, 125
Question 9
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 labor increases by 20% and capital remains cons\tant, what is the percentage change in output?
A. -10%
B. 0%
C. 10%
D. 20%
Question 10
A perfectly competitive market has a supply curve that is upward-sloping. What is the shape of the demand curve for a firm in this market?
A. Downward-sloping
B. Horizontal
C. Upward-sloping
D. Vertical
Question 11
A firm is considering two different production processes. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦500 per unit produced. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦300 per unit produced. If the firm produces 200 units, which process should it choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 12
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Q_X = 10L^0.5K^0.5, where Q_X is the quantity of good X 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, what is the quantity of good X produced?
A. 100
B. 200
C. 300
D. 400
Question 13
A monopolist faces a downward-sloping demand curve for its product. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain unchanged
D. Total revenue will increase at first and then decrease
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1.5
B. 2
C. 2.5
D. 3
Question 15
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's current labor and capital inputs are L = 4 and K = 9, respectively, what is the firm's current output?
A. 6
B. 12
C. 18
D. 24

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