POST UTME REDEEMERS UNIVERSITY 2019 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the relationship between the market supply curve and the individual firm's supply curve?
Question 2
A monopolistically competitive firm faces a demand curve that is downward sloping and a supply curve that is upward sloping. If the firm's marginal revenue (MR) is ₦100 and its marginal \cost (MC) is ₦80, what is the likely effect on the firm's price?
Question 3
A consumer is faced with the following budget constraint: 2x + 3y = 100. If the consumer's indifference curve is given by u = 2x + 3y, and the consumer is currently at the point (20, 15), what is the consumer's optimal bundle?
Question 4
A country's balance of payments is given by the following equation: BOP = X - M - \( I - S \). If the country's exports are ₦100 billion, its imports are ₦80 billion, its investment is ₦20 billion, and its savings are ₦30 billion, what is the balance of payments?
Question 5
The government of Nigeria has implemented a new policy aimed at increa\sing agricultural production. The policy involves providing subsidies to farmers who use organic fertilizers. If a farmer uses organic fertilizers and produces 1000 bags of rice, what is the total subsidy payable?
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, and the wage rate is ₦10 per hour, what is the minimum \cost of labor?
Question 7
A firm's supply curve is upward-sloping, indicating that as the price of the good increases, the quantity supplied also increases. What is the shape of the firm's supply curve?
Question 8
A country's money supply (M) is given by the equation M = 1000 + 0.5Y, where Y is the country's GDP. If the country's GDP is $10 billion, what is the country's money supply?
Question 9
A firm is considering investing in a new project that has a net present value (NPV) of ₦500,000. If the firm's \cost of capital is 10%, what is the internal rate of return (IRR) of the project?
Question 10
A firm is producing a good with a production function given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the firm's current output?
Question 11
A consumer's indifference curve is given by the equation U = 2x + 3y. If the consumer's budget constraint is given by the equation 2x + 3y = 12, and if the consumer wants to maximize his utility, what is the optimal combination of x and y?
Question 12
A government imposes a tax on imported goods to raise revenue and protect domestic industries. This tax is an example of a(n)
Question 13
A country's balance of payments account shows a trade deficit of ₦100 billion and a capital account surplus of ₦50 billion. What is the likely effect on the country's exchange rate?
Question 14
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the likely effect on the market supply curve if the government imposes a tax on the firms?
Question 15
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's consumption is $100 billion, its investment is $50 billion, its government sp\ending is $20 billion, its exports are $80 billion, and its imports are $40 billion, what is the country's GDP?
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