POST UTME REDEEMERS UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good with a production function F(x) = 3x^2 + 2x + 1, where x is the number of units produced. If the firm's objective is to minimize \costs, what is the optimal level of production?
A. 1 unit
B. 2 units
C. 3 units
D. 4 units
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 100 to 120 units and capital from 100 to 120 units, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the current input of labor is 4 units, what is the marginal product of labor?
A. 2 units
B. 4 units
C. 8 units
D. 16 units
Question 4
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and the current output price is p = 50, calculate the firm's optimal input bundle (L, K) u\sing the Hotelling's Lemma.
A. (L, K) = (100, 100)
B. (L, K) = (81, 64)
C. (L, K) = (64, 81)
D. (L, K) = (100, 64)
Question 5
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 6
A monopoly firm's demand curve is given by Qd = 100 - 2P, and its marginal revenue curve is given by MR = 200 - 4P. Find the firm's profit-maximizing price and quantity.
A. P = 20, Q = 30
B. P = 15, Q = 25
C. P = 10, Q = 20
D. P = 5, Q = 15
Question 7
The following diagram shows the production possibility frontier (PPF) 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 8
Determine the price elasticity of demand for a product whose price elasticity of demand is 0.5 and the quantity demanded decreases by 20% when the price increases by 10%.
A. Unit Elasticity
B. Inelastic Demand
C. Elastic Demand
D. Perfectly Elastic Demand
Question 9
The following table shows the data for the agricultural sector in Nigeria for the year 2018. What is the value of the sector's contribution to the country's GDP?
A. ₦1.5 trillion
B. ₦2.0 trillion
C. ₦2.5 trillion
D. ₦3.0 trillion
Question 10
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. Find the marginal revenue and the elasticity of demand.
A. MR = 100 - 4Q, ED = -1
B. MR = 100 - 2Q, ED = -2
C. MR = 100 - Q, ED = -3
D. MR = 100 + Q, ED = 1
Question 11
The concept of elasticity of demand is most relevant in the context of a perfectly competitive market, where a small change in price leads to a large change in quantity demanded. Which of the following is a correct statement about the elasticity of demand?
A. Elasticity of demand is a measure of the responsiveness of quantity demanded to changes in price.
B. Elasticity of demand is a measure of the responsiveness of quantity supplied to changes in price.
C. Elasticity of demand is a measure of the responsiveness of quantity demanded to changes in income.
D. Elasticity of demand is a measure of the responsiveness of quantity supplied to changes in income.
Question 12
A firm's demand curve is given by Qd = 100 - 2P, and the supply curve is given by Qs = 2P - 10. Find the equilibrium price and quantity.
A. P = 20, Q = 30
B. P = 15, Q = 25
C. P = 10, Q = 20
D. P = 5, Q = 15
Question 13
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. The \cost function is given by C = 10L + 20K. Find the marginal product of labor and the marginal product of capital.
A. MP_L = 2, MP_K = 3
B. MP_L = 3, MP_K = 2
C. MP_L = 4, MP_K = 1
D. MP_L = 1, MP_K = 4
Question 14
The Nigerian government has implemented policies to promote agricultural development in the country. Which of the following is a major challenge facing agricultural development in Nigeria?
A. Inadequate funding
B. Lack of infrastructure
C. Inadequate techno\logy
D. Inadequate labor
Question 15
A country's national income is given by N = C + I + G + \( X - M \), where N is national income, C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦600 billion, and imports are ₦400 billion, what is the national income?
A. ₦1.5 trillion
B. ₦1.6 trillion
C. ₦1.7 trillion
D. ₦1.8 trillion

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