POST UTME OSUSTECH 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist is facing a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = ₦10, what is the firm's optimal price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 2
A firm is considering two different production techno\logies: one that produces 100 units of output per unit of labor and another that produces 200 units of output per unit of labor. If the price of labor is ₦100 per unit, which techno\logy should the firm choose?
A. Techno\logy 1
B. Techno\logy 2
C. Both techno\logies are equally profitable
D. Neither techno\logy is profitable
Question 3
A country has a trade balance given by TB = 100 - 2X + 3M, where TB is the trade balance, X is the exports and M is the imports. If the country has exports of 50 and imports of 70, what is the trade balance?
A. 30
B. 40
C. 50
D. 60
Question 4
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are ₦10 and ₦20 respectively, and the consumer has a budget of ₦100, what is the optimal consumption bundle?
A. x = 5, y = 2
B. x = 3, y = 4
C. x = 2, y = 5
D. x = 0, y = 5
Question 5
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, and the price elasticity of demand is unit elastic at point E, what is the likely effect on the firm's output and price?
A. The firm will increase output and decrease price.
B. The firm will decrease output and increase price.
C. The firm will increase output and increase price.
D. The firm will decrease output and decrease price.
Question 6
A monopolist faces a market demand curve given by Qd = 100 - 2P and a marginal revenue function given by MR = 200 - 2Q. Find the monopolist's profit-maximizing output and price.
A. $Q = 40, P = 30$
B. $Q = 60, P = 20$
C. $Q = 80, P = 10$
D. $Q = 100, P = 0$
Question 7
The demand for a commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the commodity is given by the equation Qs = 2P - 100, where Qs is the quantity supplied. If the equilibrium price is 50, what is the equilibrium quantity?
A. 200
B. 150
C. 100
D. 50
Question 8
A government is considering a budget that includes a tax on a particular good. The tax revenue is given by \( TR = 100,000 \), and the government wants to allocate it to different sectors. If the government wants to allocate ( 30% ) of the tax revenue to education, how much will be allocated to education?
A. ( 30,000 )
B. ( 40,000 )
C. ( 50,000 )
D. ( 60,000 )
Question 9
A firm is considering investing in a new project. The project has a net present value (NPV) of ₦100,000 and a \cost of ₦120,000. What is the likely decision of the firm?
A. The firm will accept the project.
B. The firm will reject the project.
C. The firm will wait for more information.
D. The firm will not be able to make a decision.
Question 10
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are ₦10 and ₦20 respectively, and the consumer has a budget of ₦100, what is the optimal consumption bundle?
A. x = 5, y = 2
B. x = 3, y = 4
C. x = 2, y = 5
D. x = 0, y = 5
Question 11
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the firm's current output?
A. 12
B. 15
C. 18
D. 20
Question 12
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $P_x = 2$ and $P_y = 3$, find the consumer's optimal bundle of goods.
A. $x = 4, y = 3$
B. $x = 3, y = 4$
C. $x = 2, y = 5$
D. $x = 1, y = 6$
Question 13
A firm is considering investing in a new project. The project has a payback period of 5 years and a discount rate of 10%. What is the likely decision of the firm?
A. The firm will accept the project.
B. The firm will reject the project.
C. The firm will wait for more information.
D. The firm will not be able to make a decision.
Question 14
A firm is producing a good with a production function F(L,K) = L^0.4K^0.6. If the firm has 100 units of labor and 50 units of capital, and the prices of labor and capital are ₦50 and ₦100 respectively, what is the optimal input combination?
A. L = 50, K = 50
B. L = 75, K = 25
C. L = 25, K = 75
D. L = 100, K = 0
Question 15
A government imposes a tax of $T = 10$ on a firm's output. If the firm's supply curve is given by Qs = 10 + 3P, find the new supply curve and the equilibrium price and quantity.
A. $Qs = 10 + 3P, P = 20, Q = 60$
B. $Qs = 10 + 3P, P = 30, Q = 40$
C. $Qs = 10 + 3P, P = 40, Q = 20$
D. $Qs = 10 + 3P, P = 50, Q = 10$

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