POST UTME VERITAS UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost is MC = 10. What is the profit-maximizing price?
A. ₦50
B. ₦40
C. ₦30
D. ₦20
Question 2
A consumer's utility function is given by the equation U = 2x + 3y, where U is the utility and x and y are the quantities of two goods. If the quantities of the two goods are 5 and 3 respectively, what is the utility?
A. 13
B. 15
C. 17
D. 19
Question 3
A firm's production function is a mathematical representation of the relationship between the inputs used to produce a good or service and the output produced.
A. Cost-Benefit Analysis
B. Production Function
C. Consumer's Utility Function
D. Supply and Demand Curve
Question 4
A firm faces a demand curve given by Q = 50 - 2P. The firm's marginal \cost is MC = 10. What is the profit-maximizing quantity?
A. 20
B. 25
C. 30
D. 35
Question 5
The government of a country decides to implement a new tax on luxury goods to reduce income inequality. However, the tax is not progressive, meaning it is levied at the same rate on all luxury goods. Which of the following best describes the effect of this tax on the economy?
A. The tax will increase government revenue and reduce income inequality.
B. The tax will reduce government revenue and increase income inequality.
C. The tax will have no effect on government revenue or income inequality.
D. The tax will increase government revenue but have no effect on income inequality.
Question 6
Agricultural production in Nigeria is characterized by low productivity and high \costs. Which of the following policies would most likely increase agricultural productivity?
A. Subsidies to farmers
B. Investment in irrigation infrastructure
C. Export-oriented production
D. Diversification of crops
Question 7
A perfectly competitive market is characterized by a large number of firms producing a homogeneous product, and each firm has complete knowledge of market conditions.
A. Monopoly
B. Oligopoly
C. Perfect Competition
D. Monopsony
Question 8
A consumer's utility function is a mathematical representation of the satisfaction or pleasure derived from consuming a particular good or service.
A. Production Function
B. Cost-Benefit Analysis
C. Consumer's Utility Function
D. Supply and Demand Curve
Question 9
A consumer has a utility function given by U = 2x + 3y. The prices of x and y are ₦5 and ₦3 respectively. The consumer's budget is ₦20. What is the optimal bundle of x and y?
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 3, y = 3
D. x = 1, y = 5
Question 10
A country's GDP is 100 billion naira. If the inflation rate is 5% and the population is 200 million, what is the per capita income?
A. ₦500
B. ₦5000
C. ₦50,000
D. ₦500,000
Question 11
A consumer has a utility function given by U = 2x + 3y. The prices of x and y are ₦5 and ₦3 respectively. The consumer's budget is ₦20. What is the optimal bundle of x and y?
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 3, y = 3
D. x = 1, y = 5
Question 12
The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases.
A. Law of Increa\sing Costs
B. Law of Diminishing Marginal Utility
C. Law of Supply
D. Law of Demand
Question 13
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be used to produce other goods. This is an example of a fundamental principle of economics.
A. Opportunity Cost
B. Diminishing Marginal Utility
C. Law of Increa\sing Costs
D. Scarcity
Question 14
The central bank of Nigeria has implemented a monetary policy to reduce inflation. Which of the following instruments would most likely achieve this goal?
A. Open market operations
B. Reserve requirements
C. Discount rate
D. Quantitative ea\sing
Question 15
A consumer has a utility function U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. x = 60, y = 40
B. x = 40, y = 60
C. x = 50, y = 50
D. x = 30, y = 70

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