POST UTME REDEEMERS UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm's revenue function is given by R(q) = 3q^2 + 20q, what is the firm's profit function?
A. π(q) = q^2 + 15q + 5
B. π(q) = 2q^2 + 10q + 5
C. π(q) = 3q^2 + 20q
D. π(q) = q^2 + 10q + 5
Question 2
A country's balance of payments (BOP) is in equilibrium when the current account (CA) is equal to the capital account (KA). If the CA is ₦100 billion and the KA is ₦50 billion, what is the value of the BOP?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 3
A monopolist faces a market demand curve given by Qd = 100 - 2P and a marginal revenue function MR = 50 - 2Q. What is the profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 4
The scarcity of a good in Nigeria can be attributed to the following factors EXCEPT:
A. High demand
B. Low supply
C. High production \costs
D. Government policies
Question 5
A country is experiencing a trade deficit due to an increase in imports. What is the likely effect of this trade deficit on the country's exchange rate?
A. The exchange rate will appreciate
B. The exchange rate will depreciate
C. The exchange rate will remain the same
D. The effect on the exchange rate is uncertain
Question 6
A government imposes a tax on luxury goods to reduce income inequality. However, the tax is not levied on essential goods. What type of tax is this?
A. Progressive Tax
B. Regressive Tax
C. Proportional Tax
D. Selective Tax
Question 7
A country's balance of payments accounts show a trade deficit of $100 million and a capital account surplus of $50 million. What is the overall balance of payments position?
A. $50 million surplus
B. $100 million deficit
C. $150 million surplus
D. $200 million deficit
Question 8
A firm's production function is given by Q = 2L + 3K. If the firm's \cost function is given by C(L, K) = 2L^2 + 10K + 5, what is the firm's profit function?
A. π(L, K) = 2L^2 + 3K + 5
B. π(L, K) = 2L + 3K + 5
C. π(L, K) = 2L^2 + 10K
D. π(L, K) = 2L + 3K
Question 9
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers by 20%. What is the likely effect of this policy on the overall \cost of production for farmers?
A. The overall \cost of production will decrease
B. The overall \cost of production will increase
C. The overall \cost of production will remain the same
D. The effect on the overall \cost of production is uncertain
Question 10
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10, respectively, what is the consumer's optimal bundle of x and y?
A. x = 20, y = 10
B. x = 15, y = 5
C. x = 10, y = 20
D. x = 5, y = 15
Question 11
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 current input levels are L = 5 and K = 10, what is the marginal product of labor?
A. 10
B. 20
C. 30
D. 40
Question 12
A government's budget is given by the equation B = T + G. If the government's tax revenue is $50 billion and its government exp\enditure is $60 billion, what is the budget deficit?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 13
A country is experiencing a recession due to a decrease in aggregate demand. What is the likely effect of this recession on the country's unemployment rate?
A. Unemployment rate will increase
B. Unemployment rate will decrease
C. Unemployment rate will remain the same
D. The effect on unemployment rate is uncertain
Question 14
A consumer's indifference curve is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10, respectively, what is the consumer's optimal bundle of x and y?
A. x = 20, y = 10
B. x = 15, y = 5
C. x = 10, y = 20
D. x = 5, y = 15
Question 15
A country's inflation rate is given by the equation I = \( P_t - P_{t-1} \) / P_{t-1} * 100, where P_t is the current price level and P_{t-1} is the previous price level. If the current price level is ₦100 and the previous price level was ₦90, what is the value of the country's inflation rate?
A. 11.11%
B. 12.22%
C. 13.33%
D. 14.44%

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