POST UTME OAU 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost (MC) is 10. If the firm's price elasticity of demand is 2, what is the profit-maximizing price?
A. 20
B. 30
C. 40
D. 50
Question 2
The demand for a good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price increases from ₦10 to ₦15, what is the percentage change in quantity demanded?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A firm is facing a downward-sloping demand curve given by Qd = 100 - P. The firm's marginal revenue (MR) is given by MR = 100 - 2P. Find the firm's optimal price and quantity.
A. P = 50, Q = 50
B. P = 45, Q = 55
C. P = 40, Q = 60
D. P = 35, Q = 65
Question 4
A country's balance of payments is given by the equation BOP = X - M, where X is exports and M is imports. If the country's exports are ₦100 billion and its imports are ₦120 billion, what is the balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 5
Determine the elasticity of demand for a product with a price elasticity of 0.5, given that the price of the product has increased by 10%.
A. Inelastic demand
B. Unit elastic demand
C. Elastic demand
D. Perfectly inelastic demand
Question 6
A country's national income is ₦1,200 billion, and its government exp\enditure is ₦300 billion. What is the country's private sector exp\enditure?
A. ₦900 billion
B. ₦600 billion
C. ₦700 billion
D. ₦800 billion
Question 7
A farmer is producing wheat u\sing a production function Q = 100L^0.5K^0.5, where L is labor and K is capital. If the farmer increases capital from 400 to 441 units, and labor remains cons\tant at 100 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
A firm's revenue function is given by R(x) = 2x^2 + 10x. If the firm's fixed \cost is ₦500, determine the profit-maximizing level of output.
A. x = 5
B. x = 10
C. x = 15
D. x = 20
Question 9
A firm's demand function is given by \( Q = 100 - 2P \), and its supply function is given by \( Q = 2P - 10 \). If the firm's fixed \cost is ₦50, what is the firm's profit-maximizing price?
A. ₦20
B. ₦15
C. ₦25
D. ₦30
Question 10
A consumer has a utility function given by U = 2x + 3y. If the consumer's budget constraint is 10x + 20y = 100, what is the optimal bundle of x and y?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 5, y = 0
Question 11
A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. What is the country's net factor income from abroad?
A. ₦100 billion
B. ₦50 billion
C. ₦200 billion
D. ₦300 billion
Question 12
A firm is considering two production techno\logies: a traditional techno\logy with a production function Q = 2L^0.5K^0.5 and a new techno\logy with a production function Q = 3L^0.7K^0.3. If the firm's current input levels are L = 4 and K = 9, which techno\logy has a higher marginal product of labor (MPL)?
A. Traditional techno\logy
B. New techno\logy
C. Both techno\logies have the same MPL
D. Neither techno\logy has a higher MPL
Question 13
A country's GDP is 100 billion naira. The government imposes a 10% tax on all goods and services. If the tax revenue is 5 billion naira, what is the country's GNP?
A. 95
B. 100
C. 105
D. 110
Question 14
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 15
A country's GDP is 100 billion naira. The government imposes a 10% tax on all goods and services. If the tax revenue is 5 billion naira, what is the country's GNP?
A. 95
B. 100
C. 105
D. 110

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