POST UTME SUMMIT UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The following diagram shows the production possibilities frontier for a country. What is the opportunity \cost of producing 100 units of good X?
A. 10 units of good Y
B. 20 units of good Y
C. 30 units of good Y
D. 40 units of good Y
Question 2
A firm's demand curve for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's supply curve is given by Q = 2P - 50, what is the equilibrium price and quantity?
A. P = 25, Q = 50
B. P = 30, Q = 70
C. P = 35, Q = 90
D. P = 40, Q = 110
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 4 and K = 9, what is the marginal product of labor (MPL) at these input levels?
A. 1
B. 2
C. 3
D. 4
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's capital stock is fixed at 16 units, what is the marginal product of labor when the labor input is 4 units?
A. 2
B. 4
C. 8
D. 16
Question 5
A consumer has the following utility function: U = 2x + 3y. The prices of x and y are given by p_x = 2 and p_y = 3, respectively. The consumer's budget is 100. Find the optimal values of x and y that maximize utility, subject to the budget constraint.
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 25, y = 25
D. x = 40, y = 10
Question 6
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5, where C(x) is the total \cost and x is the number of units produced. If the firm produces 10 units, what is the marginal \cost?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has led to an increase in the price of agricultural inputs. U\sing the concept of opportunity \cost, explain why the policy may not be effective in increa\sing agricultural production.
A. The policy has increased the opportunity \cost of farming, making it less attractive to farmers.
B. The policy has decreased the opportunity \cost of farming, making it more attractive to farmers.
C. The policy has no effect on the opportunity \cost of farming.
D. The policy has increased the opportunity \cost of farming, but it has also increased the revenue of farmers.
Question 8
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment, and G is the government sp\ending. If the consumption is ₦100, the investment is ₦50, and the government sp\ending is ₦20, what is the GDP?
A. ₦170
B. ₦180
C. ₦190
D. ₦200
Question 9
A consumer's utility function is given by ( u(x,y) = 2x^2 + 3y^2 ). If the marginal utility of x is 4x and the marginal utility of y is 6y, what is the rate of change of the utility function with respect to y when x = 2 and y = 3?
A. 18
B. 36
C. 54
D. 72
Question 10
A government imposes a tax on a firm's output. If the firm's supply curve is upward sloping, what is the effect of the tax on the firm's output?
A. The tax increases the firm's output.
B. The tax decreases the firm's output.
C. The tax has no effect on the firm's output.
D. The tax increases the firm's output, but only if the tax rate is high.
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the \cost-minimizing combination of labor and capital?
A. \( L = 10, K = 5 \)
B. \( L = 5, K = 10 \)
C. \( L = 7.071, K = 7.071 \)
D. \( L = 3.535, K = 15.915 \)
Question 12
A firm's production function is given by ( f(x) = 3x^2 - 2x + 1 ). If the marginal product of x is 6x - 2, what is the rate of change of the production function with respect to x when x = 1?
A. 4
B. 6
C. 8
D. 10
Question 13
A firm is producing a good with the following \cost and revenue functions: C(x) = 2x^2 + 10x + 5 and R(x) = 3x^2 - 2x + 1. U\sing the concept of profit maximization, find the level of production that will maximize the firm's profit.
A. x = 1
B. x = 2
C. x = 3
D. x = 4
Question 14
The demand for a commodity is given by Qd = 100 - 2P and the supply is given by Qs = 2P. What is the equilibrium price and quantity?
A. P = 20, Q = 60
B. P = 30, Q = 50
C. P = 40, Q = 40
D. P = 50, Q = 30
Question 15
A consumer's utility function is given by ( u(x,y) = 2x^2 + 3y^2 ). If the marginal utility of x is 4x and the marginal utility of y is 6y, what is the rate of change of the utility function with respect to x when x = 2 and y = 3?
A. 8
B. 16
C. 32
D. 64

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