Practice Post UTME REDEEMERS UNIVERSITY economics 2021 Past Questions

Question 1

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%

Correct C. 10%

D. 5%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A farmer in Nigeria has 100 hectares of land to cultivate maize. The opportunity \cost of cultivating maize is ₦50,000 per hectare. If the farmer wants to cultivate maize on 50 hectares, what is the total opportunity \cost?

Correct A. ₦2,500,000

B. ₦2,000,000

C. ₦1,750,000

D. ₦1,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A perfectly competitive firm faces a market demand curve with a price elasticity of -3. If the firm increases its price by 5%, what is the percentage change in quantity demanded?

A. 15%

B. 12%

Correct C. 10%

D. 8%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A monopolist faces a demand curve with an elasticity of -1. If the firm increases its price by 20%, what is the percentage change in quantity demanded?

Correct A. 10%

B. 15%

C. 20%

D. 25%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A government in Nigeria wants to increase tax revenue by 10%. If the current tax rate is 20%, what is the new tax rate?

A. 22%

Correct B. 25%

C. 28%

D. 30%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

Consider a firm operating under cons\tant returns to scale. If the firm's production function is given by Q = 2L^2 + 3K, where Q is output, L is labor, and K is capital, what is the long-run equilibrium output if the firm's labor and capital are doubled?

A. 4L^2 + 6K

Correct B. 8L^2 + 6K

C. 4L^2 + 12K

D. 8L^2 + 12K

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. What is the net factor income from abroad?

Correct A. ₦100 billion

B. ₦50 billion

C. ₦0 billion

D. ₦-50 billion

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A monopolist faces a demand curve given by Q = 100 - 2P, where Q is quantity and P is price. If the firm's marginal revenue is given by MR = 200 - 4Q, what is the firm's optimal price?

A. ₦50

Correct B. ₦75

C. ₦100

D. ₦125

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A consumer's utility function is given by U = 2X + 3Y, where X is the quantity of good X and Y is the quantity of good Y. If the consumer's budget constraint is given by 2X + 3Y = ₦100, what is the consumer's optimal bundle?

Correct A. X = 20, Y = 10

B. X = 15, Y = 15

C. X = 10, Y = 20

D. X = 5, Y = 25

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A firm's production function is given by Q = 2L^2 + 3K, where Q is output, L is labor, and K is capital. If the firm's labor and capital are doubled, what is the long-run equilibrium output?

A. 4L^2 + 6K

Correct B. 8L^2 + 6K

C. 4L^2 + 12K

D. 8L^2 + 12K

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

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, find the price at which the quantity demanded is 60.

A. ₦80

B. ₦70

Correct C. ₦60

D. ₦50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A firm's \cost function is given by C(x) = 2x^2 + 10x + 5, where C(x) is the total \cost and x is the number of units produced. If the firm produces 20 units, find the marginal \cost.

A. ₦50

Correct B. ₦60

C. ₦70

D. ₦80

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, find the price at which the quantity supplied is 80.

A. ₦60

B. ₦70

Correct C. ₦80

D. ₦90

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A firm's revenue function is given by R(x) = 200x - 2x^2, where R(x) is the total revenue and x is the number of units sold. If the firm sells 20 units, find the marginal revenue.

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

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, find the price at which the quantity demanded is 60.

A. ₦80

B. ₦70

Correct C. ₦60

D. ₦50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5 per unit of labor, what is the optimal level of labor (L) that the firm should hire?

Correct A. 10

B. 20

C. 30

D. 40

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A consumer has the following indifference curve: U = 2x + 3y. If the budget constraint is given by 2x + 3y = 12, what is the optimal combination of x and y that the consumer should choose?

Correct A. x = 2, y = 4

B. x = 3, y = 3

C. x = 4, y = 2

D. x = 5, y = 1

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A firm has a production function Q = 3L^0.5K^0.5. If the price of the good is $15 and the wage rate is $6 per unit of labor, what is the optimal level of labor (L) that the firm should hire?

Correct A. 15

B. 20

C. 25

D. 30

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A consumer has the following indifference curve: U = x + 2y. If the budget constraint is given by x + 2y = 10, what is the optimal combination of x and y that the consumer should choose?

Correct A. x = 5, y = 2

B. x = 4, y = 3

C. x = 3, y = 4

D. x = 2, y = 5

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A firm has a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5 per unit of labor, what is the optimal level of labor (L) that the firm should hire?

Correct A. 10

B. 20

C. 30

D. 40

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

The government of a country imposes a tax on imports to raise revenue. The tax is levied at a rate of 10% on all imports. If the value of imports is ₦100 million, what is the amount of tax paid by the importer?

Correct A. ₦10 million

B. ₦5 million

C. ₦15 million

D. ₦20 million

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is ₦20, what is the quantity demanded?

A. 50

Correct B. 60

C. 70

D. 80

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A consumer's budget constraint is given by the equation 2x + 3y = 12, where x is the number of units of good x and y is the number of units of good y. If the consumer sp\ends ₦6 on good x, how much does the consumer sp\end on good y?

A. ₦2

Correct B. ₦4

C. ₦6

D. ₦8

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm uses 10 labor units and 5 capital units, what is the quantity produced?

A. 20

B. 25

Correct C. 30

D. 35

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A country's GDP is given by the equation GDP = C + I + G + $ X - M $, where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption is ₦100 billion, investment is ₦20 billion, government sp\ending is ₦30 billion, exports are ₦50 billion, and imports are ₦20 billion, what is the country's GDP?

A. ₦180 billion

B. ₦200 billion

Correct C. ₦220 billion

D. ₦240 billion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME REDEEMERS UNIVERSITY 2021 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: