POST UTME OSUSTECH 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments account shows a trade deficit of ₦500 billion and a current account deficit of ₦300 billion. What is the implied capital account surplus?
A. 100
B. 200
C. 300
D. 400
Question 2
A consumer's utility function is given by ( U(x,y) = 10\sqrt{x} + 5\sqrt{y} ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the optimal bundle of x and y u\sing the budget constraint.
A. \( x = 80, y = 40 \)
B. \( x = 40, y = 80 \)
C. \( x = 60, y = 60 \)
D. \( x = 20, y = 20 \)
Question 3
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is ₦50, what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 4
A government imposes a tax on a firm's output. The firm's supply function is given by Q = 100 + 2P. If the tax rate is 10% and the firm's current output is Q = 120, what is the new supply function after the tax is imposed?
A. Q = 100 + 2P
B. Q = 90 + 2P
C. Q = 80 + 2P
D. Q = 70 + 2P
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 4 and K = 9, what is the marginal product of capital (MPK) when the firm is producing at the current input levels?
A. 1
B. 2
C. 3
D. 4
Question 6
The government of a country decides to impose a tariff on imported goods to protect the domestic industry. However, the tariff also leads to a decrease in the quantity of imports. U\sing the concept of elasticity of demand, explain the likely effect of the tariff on the price of the imported goods.
A. The price of the imported goods will increase, but the quantity demanded will decrease.
B. The price of the imported goods will decrease, but the quantity demanded will increase.
C. The price of the imported goods will remain the same, but the quantity demanded will decrease.
D. The price of the imported goods will increase, and the quantity demanded will increase.
Question 7
A firm is producing a good with the following \cost and revenue functions: C(x) = 2x^2 + 10x + 5 and R(x) = 3x^2 - 2x + 1. Find the profit-maximizing level of production.
A. x = 1
B. x = 2
C. x = 3
D. x = 4
Question 8
A firm's marginal revenue (MR) is given by the equation MR = 100 - 4x, where x is the number of units sold. If the firm sells 10 units, what is its marginal revenue?
A. ₦60
B. ₦80
C. ₦100
D. ₦120
Question 9
A country's export supply function is given by X = 50 + 2P. If the price of the exported good is P = 75 and the country's income is Y = 200, what is the quantity of exports supplied?
A. 50
B. 75
C. 100
D. 125
Question 10
A firm is facing a downward-sloping demand curve. U\sing the concept of elasticity of demand, explain the likely effect of a decrease in the price of the good on the quantity demanded.
A. The quantity demanded will increase.
B. The quantity demanded will decrease.
C. The quantity demanded will remain the same.
D. The quantity demanded will increase, but at a decrea\sing rate.
Question 11
A country's balance of payments is in equilibrium when the current account is equal to the capital account. If the current account is -₦100 billion and the capital account is ₦150 billion, what is the net capital outflow?
A. ₦250 billion
B. ₦200 billion
C. ₦150 billion
D. ₦100 billion
Question 12
The following diagram shows the demand and supply curves for a particular good. If the price of the good is ₦100, what is the quantity demanded?
A. 10
B. 20
C. 30
D. 40
Question 13
A country is experiencing a trade deficit. U\sing the concept of the balance of payments, explain the likely effect of an increase in exports on the country's balance of payments.
A. The trade deficit will increase.
B. The trade deficit will decrease.
C. The trade deficit will remain the same.
D. The trade deficit will increase, but at a decrea\sing rate.
Question 14
A firm's production function is given by Q = 2L^2 + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's \cost function is C = 10L + 20K, what is the optimal input combination?
A. L = 5, K = 10
B. L = 10, K = 5
C. L = 15, K = 0
D. L = 0, K = 15
Question 15
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 sells 20 units, what is its total revenue?
A. ₦1800
B. ₦2000
C. ₦2200
D. ₦2400

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