POST UTME REDEEMERS UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 is ₦50, what is the quantity demanded?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 2
A consumer has a budget of ₦1000 and a utility function U(x,y) = 2x + 3y. The prices of x and y are ₦5 and ₦3 respectively. What is the consumer's optimal bundle?
A. x = 40, y = 60
B. x = 60, y = 40
C. x = 80, y = 20
D. x = 20, y = 80
Question 3
A consumer has a budget constraint of 100x + 20y = 1000, where x and y are the quantities of two goods consumed. If the consumer's utility function is U(x, y) = 2x + 3y, what is the consumer's optimal bundle?
A. (20, 10)
B. (10, 20)
C. (15, 15)
D. (5, 5)
Question 4
The government of Nigeria has implemented a policy to increase the production of rice through the use of irrigation. However, this policy has led to a decrease in the production of other crops. What is the opportunity \cost of this policy?
A. The decrease in the production of other crops
B. The increase in the production of rice
C. The opportunity \cost is the value of the next best alternative
D. The opportunity \cost is the value of the next best alternative that is given up
Question 5
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 sells 20 units, what is its total revenue?
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm wants to maximize profits, what is the optimal level of labor?
A. 10
B. 20
C. 30
D. 40
Question 7
A firm's marginal revenue (MR) is given by MR = 100 - 2q. The firm's marginal \cost (MC) is given by MC = 10 + 2q. If the firm produces 20 units, what is the profit?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 8
A firm's \cost function is given by the equation C(x) = 50 + 10x + 2x^2, where x is the number of units produced. If the firm produces 15 units, what is its total \cost?
A. ₦1,100
B. ₦1,200
C. ₦1,300
D. ₦1,400
Question 9
A country's GDP is ₦100 billion, its imports are ₦30 billion, and its exports are ₦25 billion. What is its balance of trade?
A. ₦5 billion surplus
B. ₦15 billion deficit
C. ₦20 billion surplus
D. ₦10 billion deficit
Question 10
A firm's total \cost (TC) is given by the equation TC = 100 + 2q + 0.5q^2, where q is the quantity produced. If the firm produces 20 units, what is the total \cost?
A. ₦1200
B. ₦1800
C. ₦2200
D. ₦2800
Question 11
A government is considering a tax on a particular good. The demand function for the good is given by Q = 100 - 2P. The supply function is given by Q = 2P. U\sing the concept of elasticity, determine the tax rate that would maximize government revenue.
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A firm's demand curve is given by Q = 100 - 2P. The firm's supply curve is given by Q = 20 + 2P. What is the equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
A firm is a pure monopolist in a market with a demand curve given by Q = 100 - 2P. The firm's marginal \cost curve is MC = 10. What is the firm's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 14
Determine the returns to scale for a firm with a production function Q = 2L^2K, where Q is output, L is labor, and K is capital.
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale
Question 15
A government budget has the following components: Revenue ₦1,000 billion, Exp\enditure ₦1,200 billion, and a Budget Deficit of ₦200 billion. What is the ratio of the Budget Deficit to Revenue?
A. 0.2
B. 0.25
C. 0.3
D. 0.35

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