POST UTME PAN-ATLANTIC UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is ₦50. What is the profit-maximizing price and quantity?
A. P = ₦60, Q = 40
B. P = ₦70, Q = 30
C. P = ₦80, Q = 20
D. P = ₦90, Q = 10
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue function is MR = 50 - 2P. Find the price at which the monopolist will produce 80 units.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 3
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, and the price of good x is ₦2 and the price of good y is ₦3, what is the consumer's optimal bundle of goods?
A. x = 3, y = 4
B. x = 4, y = 3
C. x = 6, y = 2
D. x = 2, y = 6
Question 4
A firm is operating in a perfectly competitive market with a demand curve given by P = 100 - 2Q. If the firm's marginal \cost is cons\tant at ₦20, what is the firm's optimal quantity of output?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 5
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, find the price at which the quantity demanded is 60 units.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
In a perfectly competitive market, what is the relationship between the marginal revenue product (MRP) and the marginal factor \cost (MFC)?
A. MRP > MFC
B. MRP < MFC
C. MRP = MFC
D. MRP is irrelevant to MFC
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 100 and the number of workers is 25, find the optimal capital.
A. 50
B. 75
C. 100
D. 125
Question 8
A firm is considering investing in a new project with an initial \cost of ₦1,000,000 and expected annual profits of ₦200,000. What is the net present value (NPV) of the project if the discount rate is 10%?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 9
A consumer's indifference curve is given by the equation 2x + 3y = 6. If the consumer's income is ₦1000 and the prices of the two goods are ₦2 and ₦3 respectively, what is the consumer's optimal bundle of goods?
A. x = 200, y = 300
B. x = 300, y = 200
C. x = 400, y = 100
D. x = 100, y = 400
Question 10
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦2 and ₦3 respectively, what is the consumer's optimal bundle of goods?
A. x = 200, y = 300
B. x = 300, y = 200
C. x = 400, y = 100
D. x = 100, y = 400
Question 11
A consumer's indifference curve is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, and the price of good x is ₦2 and the price of good y is ₦3, what is the consumer's optimal bundle of goods?
A. x = 3, y = 4
B. x = 4, y = 3
C. x = 6, y = 2
D. x = 2, y = 6
Question 12
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The budget constraint is 2x + 3y = 30. Find the optimal quantities of x and y.
A. x = 5, y = 5
B. x = 10, y = 0
C. x = 0, y = 10
D. x = 5, y = 10
Question 13
A firm's demand function for a good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal \cost is ₦10, what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 14
A government is considering a tax on a particular good. The supply curve of the good is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. The demand curve for the good is given by Q = 100 - 2P. Find the price at which the government should impose the tax.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 15
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is 10, find the optimal price and quantity.
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15

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