POST UTME SKYLINE UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm that is producing a good u\sing a production function Q = 3L^0.5K^0.5. If the firm's current input prices are w = 15 and r = 30, and it is currently producing 150 units of output, what is the firm's current total \cost?
A. ₦45,000
B. ₦60,000
C. ₦75,000
D. ₦90,000
Question 2
A monopolist has a \cost function given by \( C = 100 + 20Q \) and a revenue function given by \( R = 200Q - 2Q^2 \). Find the monopolist's profit-maximizing output.
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 3
A firm's production function is given by Q = 100K^\( 1/2 \)L^\( 1/2 \). If the firm's output is 100 units when K = 16 and L = 16, what is the marginal product of labor (MPL) when K = 16 and L = 16?
A. 2.5
B. 5
C. 10
D. 20
Question 4
A country's GDP is ₦100 billion. If the country's GNP is ₦120 billion, what is the country's net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 5
A firm is producing a good u\sing two inputs, labor (L) and capital (K). The production function is given by \( Q = 2L^{0.5}K^{0.5} \). If the firm's techno\logy is such that the marginal product of labor is 2 and the marginal product of capital is 3, find the firm's optimal input bundle.
A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 1
D. L = 1, K = 16
Question 6
A country's balance of payments (BOP) is a statistical statement that summarizes all economic transactions between a country and the rest of the world over a specific period of time. What is the main purpose of the BOP?
A. To measure a country's economic growth.
B. To measure a country's trade deficit or surplus.
C. To measure a country's foreign exchange reserves.
D. To measure a country's overall economic well-being.
Question 7
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1. Find the point of inflection and explain its significance.
A. The point of inflection represents the point at which the rate of change of the revenue function changes sign.
B. The point of inflection represents the point at which the revenue function changes from increa\sing to decrea\sing.
C. The point of inflection represents the point at which the revenue function changes from decrea\sing to increa\sing.
D. The point of inflection represents the point at which the revenue function is at a maximum.
Question 8
A firm is producing a good u\sing two inputs, labor (L) and capital (K). The production function is given by \( Q = 2L^{0.5}K^{0.5} \). If the firm's techno\logy is such that the marginal product of labor is 2 and the marginal product of capital is 3, find the firm's optimal input bundle.
A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 1
D. L = 1, K = 16
Question 9
A firm's \cost function is given by C(x) = 2x^2 + 5x + 1. Find the marginal \cost function and explain its significance.
A. The marginal \cost function represents the rate of change of the \cost function with respect to the quantity produced.
B. The marginal \cost function represents the additional \cost incurred by producing one more unit of a good or service.
C. The marginal \cost function represents the total \cost incurred by producing a good or service.
D. The marginal \cost function represents the revenue generated by selling a good or service.
Question 10
A perfectly competitive market has a demand curve given by \( P = 100 - 2Q \) and a supply curve given by \( P = 20 + 3Q \). Find the equilibrium price and quantity.
A. P = 40, Q = 20
B. P = 30, Q = 15
C. P = 50, Q = 25
D. P = 60, Q = 30
Question 11
U\sing the concept of comparative advantage, explain why a country should specialize in producing goods for which it has a lower opportunity \cost.
A. Because the country will be able to produce more goods at a lower \cost.
B. Because the country will be able to produce goods for which it has a comparative advantage.
C. Because the country will be able to export goods for which it has a comparative advantage.
D. Because the country will be able to import goods for which it has a comparative disadvantage.
Question 12
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦100 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 = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 13
A country is experiencing a trade deficit due to a decrease in exports and an increase in imports. Which of the following policies would help to reduce the trade deficit?
A. Increase government sp\ending
B. Decrease taxes
C. Implement a trade embargo
D. Increase interest rates
Question 14
A perfectly competitive market has a demand curve given by \( P = 100 - 2Q \) and a supply curve given by \( P = 20 + 3Q \). Find the equilibrium price and quantity.
A. P = 40, Q = 20
B. P = 30, Q = 15
C. P = 50, Q = 25
D. P = 60, Q = 30
Question 15
A firm is producing at a point on its production function where the marginal product of labor is 4 and the marginal product of capital is 3. If the firm increases its labor input by 1 unit, what will be the change in output?
A. 3
B. 4
C. 5
D. 6

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