POST UTME SUMMIT UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current labor and capital inputs are L = 25 and H = 16, what is the firm's current output?
A. 20
B. 25
C. 30
D. 35
Question 2
A consumer has a utility function given by U = 2X + 3Y, where X and Y are the quantities of two goods. The prices of the goods are ₦5 and ₦3 respectively. What is the consumer's budget constraint?
A. 5X + 3Y = 15
B. 5X + 3Y = 20
C. 5X + 3Y = 25
D. 5X + 3Y = 30
Question 3
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be allocated to other goods. This is an example of a _______ opportunity \cost.
A. Opportunity \cost of production
B. Opportunity \cost of consumption
C. Opportunity \cost of distribution
D. Opportunity \cost of exchange
Question 4
The production function for a firm in Nigeria is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm increases labor from 100 units to 120 units and capital from 100 units to 120 units, what will be the effect on output?
A. Increase in output
B. Decrease in output
C. No change in output
D. Uncertain effect on output
Question 5
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's current consumption, investment, government sp\ending, exports, and imports are C = 100, I = 50, G = 20, X = 150, and M = 100, what is the country's GDP?
A. 220
B. 230
C. 240
D. 250
Question 6
A perfectly competitive market has a demand function given by P = 100 - 2Q and a supply function given by P = 20 + 3Q. What is the equilibrium price and quantity?
A. 80, 20
B. 60, 30
C. 40, 40
D. 20, 60
Question 7
The money supply in Nigeria is determined by the central bank's monetary policy, which includes the reserve requirement, open market operations, and discount rate. If the central bank increases the reserve requirement from 10% to 15%, what will be the effect on the money supply?
A. Increase in money supply
B. Decrease in money supply
C. No change in money supply
D. Uncertain effect on money supply
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue curve is given by MR = 50 - 2Q. What is the price at which the monopolist maximizes profit?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
The demand for a product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price of the product. The supply of the product is given by the equation Q = 2P - 50. If the price of the product is ₦50, what is the equilibrium quantity?
A. 50 units
B. 100 units
C. 150 units
D. 200 units
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm hires 16 workers and 9 machines, find the total product.
A. 64
B. 128
C. 256
D. 512
Question 11
The government of Nigeria wants to increase its revenue by 20% within the next 2 years. If the current revenue is ₦100 billion, what is the required annual increase rate?
A. 10%
B. 15%
C. 20%
D. 25%
Question 12
A government's budget constraint is given by B = T + I, where B is the budget, T is the tax revenue, and I is the interest payment. If the government's tax revenue is ₦500 billion and the interest payment is ₦200 billion, what is the government's budget?
A. ₦700 billion
B. ₦800 billion
C. ₦900 billion
D. ₦1 trillion
Question 13
A monopolist faces a demand curve given by P = 100 - 2Q and a marginal revenue function given by MR = 50 - 2Q. What is the monopolist's profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 14
The government of Nigeria has introduced a new policy aimed at increa\sing agricultural production. The policy includes a subsidy of ₦50 per unit of fertilizer. U\sing the concept of elasticity of supply, explain why the policy may not achieve its int\ended goal.
A. The policy will lead to an increase in the quantity of fertilizer supplied, resulting in an increase in agricultural production.
B. The policy will lead to a decrease in the quantity of fertilizer supplied, resulting in a decrease in agricultural production.
C. The policy will have no effect on the quantity of fertilizer supplied.
D. The policy will lead to an increase in the price of fertilizer, resulting in a decrease in agricultural production.
Question 15
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the monopolist's profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80

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