POST UTME OSUSTECH 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The Nigerian government has implemented a monetary policy to reduce inflation. Which of the following is a likely consequence of this policy?
Question 2
A farmer in Nigeria is considering two different irrigation systems for her farm. System A \costs ₦100,000 upfront but saves ₦20,000 per year in water \costs. System B \costs ₦50,000 upfront but saves ₦15,000 per year in water \costs. If the farmer expects to use the irrigation system for 5 years, which system should she choose?
Question 3
A firm's production function is given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital, and L is labor. If the firm's capital stock increases by 25% and labor remains cons\tant, what is the percentage change in output?
Question 4
A country's budget constraint is given by C + I + G = 100, where C is consumption, I is investment, and G is government sp\ending. If the country's consumption function is C = 20 + 0.5Y and investment function is I = 10 + 0.2Y, where Y is income, what is the country's optimal level of government sp\ending?
Question 5
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 function is MR = 200 - 4Q, what is the firm's optimal price?
Question 6
A firm is producing a good with a production function of Q = 100K^0.5L^0.5. What is the returns to scale of this production function?
Question 7
A consumer is faced with the following utility function: U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal consumption bundle?
Question 8
Consider a firm operating in a perfectly competitive market with a given demand curve. If the firm's marginal revenue (MR) curve intersects its average variable \cost (AVC) curve at a point where MR > AVC, what is the likely outcome for the firm's profit?
Question 9
A firm's total revenue 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 the total revenue?
Question 10
A country is experiencing a trade deficit. Which of the following is a likely effect of this situation?
Question 11
A firm's demand function is given by the equation \( Q = 100 - 2P \), where ( P ) is the price. If the price is ₦50, what is the quantity demanded?
Question 12
A firm is considering two different production processes. Process A requires an initial investment of ₦1,000,000 and has a fixed \cost of ₦200,000 per unit produced. Process B requires an initial investment of ₦500,000 and has a fixed \cost of ₦150,000 per unit produced. If the firm produces 1,000 units, which process will result in lower total \costs?
Question 13
A monopolist faces a demand curve given by the equation \( Q = 100 - 2P \). If the firm's marginal \cost is ₦50, what is the optimal price and quantity to produce?
Question 14
A consumer has a budget of ₦10,000 to sp\end on two goods, X and Y. The price of good X is ₦5,000 and the price of good Y is ₦3,000. If the consumer sp\ends all of their budget, how many units of good X can they buy?
Question 15
A firm is operating in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will happen to the firm's output?
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