POST UTME OAU 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a market demand curve with the following equation: Qd = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 60, Q = 20
C. P = 80, Q = 10
D. P = 20, Q = 80
Question 2
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal \cost (MC) is given by MC = 10 + 2Q. What is the firm's profit-maximizing quantity?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 3
A firm has a total revenue function given by TR = 2Q^2 - 100Q + 500, where Q is quantity. If the firm's total \cost function is given by TC = Q^2 + 50Q + 100, what is the profit-maximizing quantity?
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 4
A country's national income is given by the equation Y = C + I + G + \( X - M \), where Y is national income, C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption, investment, government sp\ending, exports, and imports are 100, 20, 30, 50, and 40 respectively, what is its national income?
A. 150
B. 160
C. 170
D. 180
Question 5
A perfectly competitive market has a supply curve given by Q = 2P - 100. If the demand curve is given by Q = 200 - 3P, what is the equilibrium price and quantity?
A. P = 50, Q = 100
B. P = 75, Q = 150
C. P = 100, Q = 200
D. P = 125, Q = 250
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 budget constraint is 10x + 5y = 100, what is the optimal bundle of goods (x, y) that maximizes the consumer's utility?
A. x = 2, y = 10
B. x = 5, y = 8
C. x = 10, y = 5
D. x = 8, y = 5
Question 7
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is GDP, C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption, investment, government sp\ending, exports, and imports are 100, 20, 30, 50, and 40 respectively, what is the country's GDP?
A. 150
B. 160
C. 170
D. 180
Question 8
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 3, y = 15
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 the firm's labor and capital are 100 units each, what is the output?
A. 200 units
B. 400 units
C. 600 units
D. 800 units
Question 10
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 increases labor from 100 to 121 units, and capital from 100 to 121 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A firm's demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue is MR = 20, what is the profit-maximizing quantity?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 12
A central bank uses the monetary policy tool of open market operations to increase the money supply. If the central bank buys ₦100 billion worth of government securities from commercial banks, what is the expected effect on the money supply?
A. Increase by ₦50 billion
B. Increase by ₦100 billion
C. Decrease by ₦50 billion
D. Decrease by ₦100 billion
Question 13
Consider a firm that is considering investing in a new project. The project has a \cost of $100,000 and is expected to generate a cash flow of $150,000 in the first year, $120,000 in the second year, and $90,000 in the third year. What is the net present value (NPV) of the project if the discount rate is 10%?
A. \( NPV = 50,000 \)
B. \( NPV = 30,000 \)
C. \( NPV = 20,000 \)
D. \( NPV = 10,000 \)
Question 14
A firm's demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal \cost is MC = 10, what is the profit-maximizing price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 15
A consumer has the following budget constraint: 2x + 3y = 100. If the consumer's utility function is U(x,y) = 2x + 3y, what is the optimal bundle of x and y that the consumer should purchase?
A. \( x = 20, y = 10 \)
B. \( x = 10, y = 20 \)
C. \( x = 15, y = 15 \)
D. \( x = 25, y = 5 \)

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