POST UTME SKYLINE UNIVERSITY 2022 Economics | Objective

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Question 1 View Details
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price?
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

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Question 2 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1
B. 2
Correct C. 3
D. 4

Correct Answer: C

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Question 3 View Details
A government wants to reduce the budget deficit by increa\sing taxes. If the government currently collects ₦100 billion in taxes and sp\ends ₦150 billion, what is the new tax rate if the government wants to reduce the deficit by 20%?
A. 20%
B. 25%
Correct C. 30%
D. 35%

Correct Answer: C

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Question 4 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the total product of labor?
A. 8
B. 16
Correct C. 32
D. 64

Correct Answer: C

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Question 5 View Details
A government wants to reduce the budget deficit by reducing sp\ending. If the government currently collects ₦100 billion in taxes and sp\ends ₦150 billion, what is the new sp\ending level if the government wants to reduce the deficit by 20%?
A. ₦120 billion
B. ₦125 billion
Correct C. ₦130 billion
D. ₦135 billion

Correct Answer: C

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Question 6 View Details
Consider a firm producing a homogeneous good with a production function Q = 2√(KL), where Q is the quantity produced, K is the amount of capital, and L is the amount of labor. If the price of capital is ₦100 per unit and the price of labor is ₦50 per unit, and the firm's revenue is ₦10,000, what is the value of K?
A. 100
B. 200
Correct C. 300
D. 400

Correct Answer: C

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Question 7 View Details
A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods consumed. If the price of good x is ₦20 and the price of good y is ₦30, and the consumer's income is ₦100, what is the optimal quantity of good x?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 8 View Details
A firm has a \cost function C = 2Q + 3Q^2, where Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. 50
B. 100
Correct C. 150
D. 200

Correct Answer: C

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Question 9 View Details
A consumer has the following budget constraint: 20x + 30y = 100, where x and y are the quantities of two goods consumed. If the consumer's utility function is U = 2x + 3y, what is the optimal quantity of good x?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 10 View Details
A firm has a production function Q = 2√(KL), where Q is the quantity produced, K is the amount of capital, and L is the amount of labor. If the price of capital is ₦100 per unit and the price of labor is ₦50 per unit, and the firm's revenue is ₦10,000, what is the value of L?
A. 100
B. 200
C. 300
Correct D. 400

Correct Answer: D

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Question 11 View Details
Determine the price elasticity of demand for a product that experiences a 20% decrease in price, resulting in a 15% increase in quantity demanded. Assume the initial price and quantity demanded are $100 and 100 units, respectively.
Correct A. 0.75
B. 1.25
C. -0.75
D. -1.25

Correct Answer: A

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Question 12 View Details
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 increases labor from 4 units to 9 units and capital from 9 units to 16 units, what is the percentage change in output?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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Question 13 View Details
A country's balance of payments account shows a trade deficit of $100 million, a capital account surplus of $50 million, and a current account deficit of $150 million. What is the overall balance of payments position?
A. $50 million surplus
B. $100 million deficit
Correct C. $150 million deficit
D. $200 million surplus

Correct Answer: C

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Question 14 View Details
A central bank increases the reserve requirement for commercial banks from 10% to 15%. What is the effect on the money supply?
A. Increase
Correct B. Decrease
C. No change
D. Uncertain

Correct Answer: B

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Question 15 View Details
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm increases labor from 4 units to 9 units and capital from 9 units to 16 units, what is the percentage change in \cost?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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Question 16 View Details
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 supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦50, 200 units
B. ₦75, 150 units
Correct C. ₦100, 100 units
D. ₦125, 50 units

Correct Answer: C

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Question 17 View Details
Agricultural production in Nigeria is characterized by low productivity and low yields. What are the possible causes of this phenomenon?
Correct A. Inadequate irrigation facilities, lack of fertilizers, and poor farming techniques
B. Inadequate funding for agricultural research, lack of extension services, and poor marketing strategies
C. Inadequate storage facilities, lack of transportation infrastructure, and poor market access
D. Inadequate credit facilities, lack of insurance coverage, and poor risk management

Correct Answer: A

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Question 18 View Details
The concept of utility is central to consumer behavior. What are the different types of utility?
Correct A. Cardinal utility, ordinal utility, and total utility
B. Marginal utility, average utility, and total utility
C. Direct utility, indirect utility, and derived utility
D. Subjective utility, objective utility, and perceived utility

Correct Answer: A

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Question 19 View Details
The concept of GDP is widely used to measure a country's economic activity. What are the different components of GDP?
A. Consumption, investment, government sp\ending, and net exports
Correct B. Personal consumption, bu\siness investment, government sp\ending, and net exports
C. Household consumption, bu\siness investment, government sp\ending, and net exports
D. Final consumption, intermediate consumption, capital formation, and net exports

Correct Answer: B

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Question 20 View Details
The concept of international trade is central to the global economy. What are the different types of international trade?
Correct A. Export, import, and balance of trade
B. Trade surplus, trade deficit, and balance of trade
C. Free trade, protectionism, and fair trade
D. Tariff, quota, and non-tariff barriers

Correct Answer: A

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Question 21 View Details
The Central Bank of Nigeria (CBN) uses monetary policy to control inflation. Which of the following instruments is most effective in reducing inflation?
Correct A. Open Market Operations (OMO)
B. Reserve Requirements
C. Cash Reserve Ratio (CRR)
D. Discount Rate

Correct Answer: A

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Question 22 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its capital from 100 to 400, and labor from 100 to 400, what is the percentage change in output?
A. 25%
B. 50%
Correct C. 75%
D. 100%

Correct Answer: C

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Question 23 View Details
A consumer's indifference curve is given by U = 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?
Correct A. (100, 50)
B. (50, 100)
C. (200, 50)
D. (50, 200)

Correct Answer: A

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Question 24 View Details
A firm's demand function is given by Q = 100 - 2P. If the firm's revenue is ₦1000, and the price is ₦20, what is the firm's output?
Correct A. 20
B. 30
C. 40
D. 50

Correct Answer: A

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Question 25 View Details
A consumer's budget constraint is given by 2x + 3y = 100. If the consumer's utility function is U = 2x + y, what is the consumer's optimal bundle?
Correct A. (20, 30)
B. (30, 20)
C. (40, 10)
D. (10, 40)

Correct Answer: A

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