POST UTME REDEEMERS UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a closed economy with a GDP of $100 billion and a GNP of $120 billion. If the net factor income from abroad is $20 billion, what is the value of the country's net foreign investment?
A. ( $10 billion )
B. ( $20 billion )
C. ( $30 billion )
D. ( $40 billion )
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm produces 50 units, what is the price?
A. 40
B. 45
C. 50
D. 55
Question 3
A monopolist faces a demand curve given by P = 100 - 2Q, where P is price and Q is quantity. If the firm's marginal \cost is cons\tant at ₦20, what is the firm's optimal quantity?
A. 20
B. 30
C. 40
D. 50
Question 4
A consumer's demand curve for a good is given by Q = 100 - 2P, where P is price. If the consumer's income is ₦1000 and the price of a complementary good is ₦200, what is the optimal quantity of the good?
A. 40
B. 50
C. 60
D. 70
Question 5
A country's balance of payments is in surplus if its exports exceed its imports. True or False?
A. True
B. False
C. It dep\ends on the context
D. More information is needed
Question 6
A central bank increases the money supply by 10%. If the price level is initially 100, what is the new price level?
A. 110
B. 115
C. 120
D. 125
Question 7
Suppose 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 supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 8
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the price of the good is $5, what is the profit-maximizing quantity?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 9
A firm is operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the firm's \cost function is C(L,K) = 2L + 3K, what is the optimal level of labor (L) and capital (K) that minimizes \cost?
A. \( L = 4, K = 4 \)
B. \( L = 8, K = 2 \)
C. \( L = 2, K = 8 \)
D. \( L = 16, K = 1 \)
Question 10
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 11
A firm has a production function Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the firm hires 5 units of labor and 3 units of capital, find the output.
A. 15
B. 20
C. 25
D. 30
Question 12
A firm has a production function given by Q = 2L^0.5K^0.5. If the firm increases its labor input by 20% and keeps its capital input cons\tant, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 13
A monopolistically competitive firm faces a demand curve with an elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?
A. 20%
B. 15%
C. 10%
D. 5%
Question 14
Suppose the Central Bank of Nigeria (CBN) increases the reserve requirement for commercial banks from 10% to 15%. If the money multiplier is 10, what is the new money supply?
A. ₦1.5 billion
B. ₦1.0 billion
C. ₦1.25 billion
D. ₦1.75 billion
Question 15
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor and K is capital. If the firm wants to increase output by 10% while keeping labor cons\tant, what percentage increase in capital is required?
A. 5%
B. 10%
C. 20%
D. 25%

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