POST UTME SUMMIT UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government imposes a tax of ₦5 on a good whose supply curve is given by Qs = 2P - 50. Find the new supply curve and the equilibrium price and quantity.
A. Qs = 2P - 55, ₦50, 75
B. Qs = 2P - 45, ₦45, 50
C. Qs = 2P - 35, ₦35, 75
D. Qs = 2P - 25, ₦25, 50
Question 2
A firm is considering investing in a new project. If the project has a net present value (NPV) of ₦100,000, and the firm's \cost of capital is 10%, what is the internal rate of return (IRR) of the project?
A. 5%
B. 10%
C. 15%
D. 20%
Question 3
A firm's production function is given by the equation Q = 100L^\( -1/2 \)K^\( -1/2 \). If the firm's output is 100 units and its labor input is 25 units, what is the value of its capital input?
A. 25 units
B. 50 units
C. 75 units
D. 100 units
Question 4
A firm's \cost function is given by C = 2L + 3H, where L is labor and H is capital. If the firm's current labor and capital inputs are 4 and 9 units respectively, what is the total \cost?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 6
A government is considering a policy to reduce inflation by increa\sing the reserve requirement for commercial banks. If the current reserve requirement is 10% and the government increases it to 15%, what is the expected effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 7
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost (MC) is 10, what is the optimal price (P) and quantity (Q) that the firm should produce?
A. P = 40, Q = 60
B. P = 50, Q = 50
C. P = 60, Q = 40
D. P = 70, Q = 30
Question 8
A firm's production function is given by Q = 2L^0.5H^0.5. 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 9
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 10
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, find the optimal quantities of x and y.
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 0
D. x = 0, y = 10
Question 11
A country's GDP at market price is $100 billion. If the implicit deflator is 120, what is the GDP at factor \cost?
A. $80 billion
B. $90 billion
C. $100 billion
D. $110 billion
Question 12
A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left by 10% due to the tax, and the price elasticity of supply is 2, what is the percentage change in the firm's output?
A. -5%
B. -10%
C. -15%
D. -20%
Question 13
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 budget constraint is 10x + 5y = 50, what is the optimal quantity of good x?
A. 2
B. 4
C. 6
D. 8
Question 14
A country's GDP is ₦1000 billion and its GNP is ₦1200 billion. What is the country's net factor income from abroad?
A. ₦200 billion
B. ₦300 billion
C. ₦400 billion
D. ₦500 billion
Question 15
A firm has a production function F(x) = 2x^2 + 3x - 4. If the price of the good is P = 10, find the profit-maximizing quantity.
A. x = 2
B. x = 3
C. x = 4
D. x = 5

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