POST UTME REDEEMERS UNIVERSITY 2022 Economics | Objective

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Question 1 View Details
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
Correct C. Cons\tant Returns to Scale
D. No Returns to Scale

Correct Answer: C

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Question 2 View Details
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

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Question 3 View Details
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
Correct B. ₦1,800
C. ₦2,000
D. ₦2,200

Correct Answer: B

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Question 4 View Details
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
Correct B. 0.25
C. 0.3
D. 0.35

Correct Answer: B

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Question 5 View Details
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
Correct C. ₦1,300
D. ₦1,400

Correct Answer: C

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Question 6 View Details
A firm's total revenue (TR) is given by the equation TR = 100q - 2q^2, where q is the quantity sold. If the firm sells 20 units, what is the total revenue?
A. ₦1200
Correct B. ₦1800
C. ₦2200
D. ₦2800

Correct Answer: B

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Question 7 View Details
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost (MC) is given by MC = 10 + 2Q. If the monopolist produces 20 units, what is the price?
A. ₦20
B. ₦30
Correct C. ₦40
D. ₦50

Correct Answer: C

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Question 8 View Details
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
Correct C. ₦40
D. ₦50

Correct Answer: C

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Question 9 View Details
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
Correct C. ₦2200
D. ₦2800

Correct Answer: C

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Question 10 View Details
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
Correct C. ₦300
D. ₦400

Correct Answer: C

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Question 11 View Details
The government of Nigeria has introduced a policy to increase the production of rice through the use of irrigation. However, the policy has been met with resis\tance from some farmers who claim that the increased water usage will lead to a decrease in the water table. Which of the following is a potential consequence of this policy?
A. Increased food security
Correct B. Decreased water table
C. Increased employment opportunities
D. Improved agricultural productivity

Correct Answer: B

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Question 12 View Details
A firm is producing a good with a total revenue function of TR = 100x - 2x^2, where x is the number of units produced. If the firm's marginal revenue is 50, what is the price elasticity of demand?
Correct A. 0.5
B. 1
C. 2
D. 5

Correct Answer: A

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Question 13 View Details
A consumer has a utility function of U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
Correct A. (20, 10)
B. (10, 20)
C. (15, 15)
D. (5, 5)

Correct Answer: A

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Question 14 View Details
A firm is producing a good with a production function of Q = 2L^0.5K^0.5, where L and K are the quantities of labor and capital respectively. If the firm's output is 100 units and the price of labor is ₦10 per unit, what is the optimal quantity of capital?
A. 10
B. 20
Correct C. 50
D. 100

Correct Answer: C

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Question 15 View Details
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?
Correct A. (20, 10)
B. (10, 20)
C. (15, 15)
D. (5, 5)

Correct Answer: A

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Question 16 View Details
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?
Correct A. ₦1,800
B. ₦2,000
C. ₦2,200
D. ₦2,400

Correct Answer: A

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Question 17 View Details
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
Correct B. 30 units
C. 40 units
D. 50 units

Correct Answer: B

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Question 18 View Details
A firm's \cost function is given by the equation TC = 50 + 10x + 2x^2, where x is the number of units produced. If the firm produces 10 units, what is its total \cost?
A. ₦150
B. ₦200
Correct C. ₦250
D. ₦300

Correct Answer: C

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Question 19 View Details
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 is ₦30, what is the quantity supplied?
A. 20 units
B. 30 units
Correct C. 40 units
D. 50 units

Correct Answer: C

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Question 20 View Details
A firm's revenue function is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 15 units, what is its marginal revenue?
A. ₦50
Correct B. ₦60
C. ₦70
D. ₦80

Correct Answer: B

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Question 21 View Details
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
Correct B. ₦15 billion deficit
C. ₦20 billion surplus
D. ₦10 billion deficit

Correct Answer: B

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Question 22 View Details
A firm is producing a good with a total revenue of ₦500, a total \cost of ₦300, and a fixed \cost of ₦100. What is its profit?
A. ₦100
B. ₦200
Correct C. ₦300
D. ₦400

Correct Answer: C

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Question 23 View Details
A consumer has a budget of ₦1000 and is faced with two goods: A and B. The price of good A is ₦200, and the price of good B is ₦300. If the consumer buys 2 units of good A, how many units of good B can they buy?
A. 1 unit
Correct B. 2 units
C. 3 units
D. 4 units

Correct Answer: B

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Question 24 View Details
A firm is operating in a perfectly competitive market with a demand curve of Q = 100 - 2P and a supply curve of Q = 50 + 3P. What is the equilibrium price?
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

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Question 25 View Details
A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. What is its national income?
A. ₦130 billion
B. ₦140 billion
Correct C. ₦150 billion
D. ₦160 billion

Correct Answer: C

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