POST UTME WELLSPRING UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's total \cost is given by the equation TC = 50x + 100, find the profit-maximizing level of output.
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 2
A country's money supply is ₦1,000 billion, its velocity of money is 2, and its price level is ₦100. What is the country's nominal GDP?
A. ₦2,000 billion
B. ₦3,000 billion
C. ₦4,000 billion
D. ₦5,000 billion
Question 3
The demand for a good is given by the equation: Qd = 100 - 2P. If the price of the good is $10, what is the quantity demanded?
A. 40 units
B. 50 units
C. 60 units
D. 70 units
Question 4
A firm operating in a perfectly competitive market is characterized by which of the following?
A. A \single price setter
B. A large number of firms producing a homogeneous product
C. A firm that can influence the market price
D. A firm that produces a differentiated product
Question 5
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the total output?
A. 30
B. 40
C. 50
D. 60
Question 6
A firm is considering two different production processes. Process A has a fixed \cost of ₦50,000 and a variable \cost of ₦100 per unit. Process B has a fixed \cost of ₦75,000 and a variable \cost of ₦80 per unit. If the firm produces 1,000 units, which process will result in lower total \cost?
A. Process A
B. Process B
C. Both processes are equal
D. Neither process is better
Question 7
The government of Nigeria is considering a policy to increase the production of agricultural products. If the current GDP is ₦10 trillion and the government expects an increase of 10% in agricultural production, what will be the new GDP?
A. ₦11 trillion
B. ₦11.1 trillion
C. ₦11.2 trillion
D. ₦11.3 trillion
Question 8
The Nigerian government has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the availability of fertilizers. Assuming that the policy is successful, what will be the effect on the supply of rice in the short run?
A. The supply of rice will increase in the short run.
B. The supply of rice will decrease in the short run.
C. The supply of rice will remain the same in the short run.
D. The effect on the supply of rice in the short run cannot be determined.
Question 9
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, what is the equilibrium price and quantity?
A. P = ₦50, Q = 25
B. P = ₦75, Q = 25
C. P = ₦100, Q = 50
D. P = ₦125, Q = 75
Question 10
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm's input prices are given by the equation w = ₦100 and r = ₦200, what is the firm's \cost-minimizing input bundle?
A. L = 100, K = 100
B. L = 200, K = 200
C. L = 100, K = 200
D. L = 200, K = 100
Question 11
A firm is considering investing in a new project. The initial investment is ₦100,000, and the expected cash flows are ₦20,000 in the first year, ₦30,000 in the second year, and ₦40,000 in the third year. If the discount rate is 10%, what is the net present value of the project?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 12
The money supply in an economy is influenced by the
A. central bank
B. commercial banks
C. government
D. foreign investors
Question 13
A country's GDP is ₦1,500 billion, its imports are ₦300 billion, and its exports are ₦200 billion. What is the country's net foreign income?
A. ₦1,100 billion
B. ₦1,200 billion
C. ₦1,300 billion
D. ₦1,400 billion
Question 14
A firm is producing a good with the following production function: Q = 2L^0.5 + 3K^0.5. If the firm has 100 units of labor and 200 units of capital, what is the maximum output?
A. 50 units
B. 60 units
C. 70 units
D. 80 units
Question 15
A firm is producing a good with the following \cost function: C(q) = 2q^2 + 10q + 100. If the price of the good is $5, what is the profit-maximizing quantity of the good?
A. 10 units
B. 20 units
C. 30 units
D. 40 units

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: