POST UTME REDEEMERS UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a production function given by Q = 10L^0.5K^0.5, where L is labor and K is capital. If the firm's current labor and capital inputs are 100 and 400 respectively, what is the marginal product of labor?
A. 0.25
B. 0.5
C. 1
D. 2
Question 2
The following diagram shows the supply and demand curves for a particular commodity. If the price of the commodity is currently at P1, what is the likely effect on the quantity supplied and quantity demanded?
A. Quantity supplied increases and quantity demanded decreases
B. Quantity supplied decreases and quantity demanded increases
C. Quantity supplied increases and quantity demanded increases
D. Quantity supplied decreases and quantity demanded decreases
Question 3
A consumer's indifference curve is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of x and y?
A. x = 80, y = 20
B. x = 60, y = 40
C. x = 40, y = 60
D. x = 20, y = 80
Question 4
Determine the value of the elasticity of demand for a product whose price elasticity of demand is 0.8 and the quantity demanded is 120 units when the price is ₦150.
A. 0.6
B. 0.8
C. 1.2
D. 1.5
Question 5
A country's inflation rate is given by the equation π = \( P - P^\( -1 \ \))/\( P^\( -1 \ \)), where π is the inflation rate, P is the current price level, and P^\( -1 \) is the previous price level. If the current price level is 100 and the previous price level is 90, what is the inflation rate?
A. 5%
B. 10%
C. 15%
D. 20%
Question 6
A perfectly competitive market has a supply function given by Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price is 20, what is the quantity supplied?
A. 70
B. 80
C. 90
D. 100
Question 7
Suppose 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 cons\tant and equal to -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 8
A firm is producing a good u\sing a production function Q = 3L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases labor from 100 to 121 units and capital from 100 to 121 units, calculate the percentage change in output.
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
A firm operating in a perfectly competitive market has a total revenue function given by TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue is 50, what is the value of x?
A. 10
B. 20
C. 30
D. 40
Question 10
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production functions are given by Qx = 2L^0.5K^0.5 and Qy = 3L^0.25K^0.75. If the firm has 100 units of labor and 200 units of capital, what is the total output of the firm?
A. 100
B. 120
C. 150
D. 180
Question 11
A monopolist is producing a good with a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is ₦20, what is the firm's optimal price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 12
The following table shows the production \costs for a firm. If the firm produces 100 units of output, what is the total variable \cost?
A. ₦5000
B. ₦6000
C. ₦7000
D. ₦8000
Question 13
The demand for a commodity is said to be inelastic if a change in its price leads to a relatively small change in the quantity demanded. Which of the following is a characteristic of an inelastic demand curve?
A. A small change in price leads to a large change in quantity demanded
B. A large change in price leads to a small change in quantity demanded
C. A change in price has no effect on quantity demanded
D. A change in income has no effect on quantity demanded
Question 14
A firm's \cost function is given by the equation C = 100 + 2Q + 0.5Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 100 units of output, what is the total \cost?
A. 150
B. 200
C. 250
D. 300
Question 15
The demand function for a product is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the supply function is given by Q = 2P + 50, what is the equilibrium price and quantity?
A. P = 25, Q = 75
B. P = 30, Q = 70
C. P = 35, Q = 65
D. P = 40, Q = 60

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: