POST UTME PAN-ATLANTIC UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good u\sing a production function of the form Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 9 units, and its capital input from 9 units to 16 units, what will be the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
A consumer has the following utility function: U = 2X + 3Y, where X and Y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2X + 3Y = ₦100, what is the consumer's optimal bundle of goods?
A. X = 20, Y = 10
B. X = 15, Y = 15
C. X = 10, Y = 20
D. X = 5, Y = 25
Question 3
A consumer's budget constraint is given by the equation 2x + 3y = 12. What is the opportunity \cost of consuming one more unit of good x?
A. The opportunity \cost is 2 units of good y.
B. The opportunity \cost is 3 units of good y.
C. The opportunity \cost is 4 units of good y.
D. The opportunity \cost is 6 units of good y.
Question 4
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The consumer's budget constraint is given by 2x + 3y = 12. What is the consumer's optimal bundle of goods \( x*, y* \)?
A. x* = 2, y* = 4
B. x* = 3, y* = 3
C. x* = 4, y* = 2
D. x* = 6, y* = 0
Question 5
A firm's production function is given by Q = 3L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are L = 9 and H = 4, respectively, what is the marginal product of capital (MPH) when L = 9?
A. 1/2
B. 1
C. 2
D. 3
Question 6
A government plans to invest ₦50 billion in a new project. The project has a payback period of 5 years and a net present value of ₦20 billion. What is the project's internal rate of return?
A. 20%
B. 25%
C. 30%
D. 35%
Question 7
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \). If the country's consumption (C) is ₦100 billion, investment (I) is ₦50 billion, government sp\ending (G) is ₦20 billion, exports (X) are ₦30 billion, and imports (M) are ₦10 billion, what is the country's GDP?
A. ₦200 billion
B. ₦250 billion
C. ₦300 billion
D. ₦350 billion
Question 8
A firm's total revenue is given by TR = 100x - 2x^2. If the firm's current output is x = 10, what is the firm's current total revenue?
A. ₦800
B. ₦900
C. ₦1000
D. ₦1100
Question 9
The following diagram shows the production possibilities frontier (PPF) of a country. If the country decides to produce 100 units of good X and 50 units of good Y, what will be the opportunity \cost of producing one more unit of good X?
A. 20 units of good Y
B. 30 units of good Y
C. 40 units of good Y
D. 50 units of good Y
Question 10
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's current quantity demanded?
A. 60
B. 70
C. 80
D. 90
Question 11
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 50 - 2Q, what is the firm's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 12
A firm is producing at a point where its marginal revenue equals its marginal \cost. What does this imply about the firm's production level?
A. The firm is producing at its profit-maximizing level.
B. The firm is producing at its minimum point.
C. The firm is producing at its maximum point.
D. The firm is producing at its break-even point.
Question 13
A government imposes a tax of ₦10 on every unit of a good. The demand for the good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the good is given by the equation Qs = 2P, what is the equilibrium price and quantity?
A. P = 20, Q = 40
B. P = 30, Q = 50
C. P = 40, Q = 60
D. P = 50, Q = 70
Question 14
A country's population is 100 million, its GDP per capita is ₦50,000, and its inflation rate is 10%. What is the country's nominal GDP?
A. ₦5 trillion
B. ₦6 trillion
C. ₦7 trillion
D. ₦8 trillion
Question 15
The following table shows the demand and supply schedules for a particular good.
A. ₦50
B. ₦60
C. ₦70
D. ₦80

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