POST UTME REDEEMERS UNIVERSITY 2025 Economics | Objective

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Question 1
A firm has a \cost function given by ( C(x) = 100 + 2x + 0.01x^2 ). If the firm produces 100 units of output, what is the total \cost?
A. ₦1200
B. ₦1300
C. ₦1400
D. ₦1500
Question 2
A firm has a \cost function given by ( C(x) = 100 + 2x + 0.01x^2 ). If the firm produces 100 units of output, what is the total \cost?
A. ₦1200
B. ₦1300
C. ₦1400
D. ₦1500
Question 3
A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. What is the country's national income?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 4
A consumer's utility function is given by U = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = ₦100. If the consumer's income is ₦1000, what is the optimal bundle of x and y?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 25, y = 5
Question 5
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost (MC) is given by MC = 10 + 2Q. If the firm's fixed \cost is ₦1000, what is the profit-maximizing price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 7
A firm's production function is given by Q = 2L^0.5, where Q is output and L is labor. If the firm's labor is 4 units, what is its output?
A. Q = 4
B. Q = 8
C. Q = 16
D. Q = 32
Question 8
A firm's demand function is given by Q = 100 - 2P. If the firm's supply function is given by Q = 2P - 50, what is the equilibrium price and quantity?
A. P = ₦20, Q = 50
B. P = ₦30, Q = 70
C. P = ₦40, Q = 90
D. P = ₦50, Q = 100
Question 9
A government's budget is given by B = T + I. If the government's tax revenue is ₦50 billion and its exp\enditure on interest is ₦20 billion, what is the government's budget deficit?
A. ₦30 billion
B. ₦40 billion
C. ₦50 billion
D. ₦60 billion
Question 10
A firm is operating in a perfectly competitive market and is facing a downward-sloping demand curve. If the firm's marginal revenue (MR) is given by MR = 100 - 2Q and the marginal \cost (MC) is given by MC = 20 + 2Q, what is the optimal level of output?
A. 20
B. 30
C. 40
D. 50
Question 11
A government budget is given by B = T + I + G, where B is budget, T is tax revenue, I is interest payment, and G is government exp\enditure. If the government increases tax revenue by 10% and interest payment by 5%, and government exp\enditure by 8%, what is the percentage change in the budget?
A. 7%
B. 8%
C. 9%
D. 10%
Question 12
A country's balance of payments (BOP) is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are $100 million and its imports are $120 million, what is the BOP?
A. $20 million surplus
B. $20 million deficit
C. $40 million surplus
D. $40 million deficit
Question 13
A consumer's utility function is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is $100 and the prices of the two goods are $5 and $10 respectively, find the consumer's optimal quantities of the two goods.
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 25
Question 14
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is given by MR = 100 - 2q, where q is the quantity sold, find the firm's optimal quantity and price.
A. q = 25, p = 75
B. q = 50, p = 50
C. q = 75, p = 37.5
D. q = 100, p = 25
Question 15
A monopolist has a demand function given by \( Q = 100 - 2P \) and a \cost function given by ( C(x) = 100 + 2x + 0.01x^2 ). If the firm produces 100 units of output, what is the price at which the quantity demanded is 50?
A. ₦25
B. ₦30
C. ₦35
D. ₦40

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