POST UTME RHEMA UNIVERSITY 2017 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 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 2
A consumer has a budget of ₦1000 and faces the following prices: Q1 = ₦10, Q2 = ₦20, Q3 = ₦30. Find the consumer's optimal bundle.
A. Q1 = 100 units, Q2 = 50 units, Q3 = 0 units
B. Q1 = 50 units, Q2 = 75 units, Q3 = 25 units
C. Q1 = 0 units, Q2 = 50 units, Q3 = 100 units
D. Q1 = 75 units, Q2 = 25 units, Q3 = 50 units
Question 3
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
A. (100, 100)
B. (200, 50)
C. (150, 75)
D. (250, 25)
Question 4
A consumer's budget constraint is given by the equation \( 2x + 3y = 12 \). If the consumer's income is ₦12 and the prices of x and y are ₦2 and ₦3 respectively, find the consumer's optimal bundle of x and y.
A. (3, 2)
B. (2, 3)
C. (1, 4)
D. (4, 1)
Question 5
A firm's \cost function is given by C(q) = 10q^2 + 20q. If the firm produces 5 units, what is the total \cost?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 6
A consumer's indifference curve is steeper than another consumer's indifference curve. What does this imply about the two consumers?
A. The first consumer is more risk-averse than the second consumer.
B. The first consumer is more risk-loving than the second consumer.
C. The first consumer has a higher income than the second consumer.
D. The first consumer has a lower income than the second consumer.
Question 7
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). What is the firm's marginal product of labor?
A. L^\( -1/2 \)K^\( 1/2 \)
B. 2L^\( -1/2 \)K^\( 1/2 \)
C. L^\( 1/2 \)K^\( -1/2 \)
D. L^\( -1/2 \)K^\( -1/2 \)
Question 8
A firm's average total \cost curve is U-shaped. What does this imply about the firm's production techno\logy?
A. The firm's production techno\logy exhibits increa\sing returns to scale.
B. The firm's production techno\logy exhibits decrea\sing returns to scale.
C. The firm's production techno\logy exhibits cons\tant returns to scale.
D. The firm's production techno\logy exhibits no returns to scale.
Question 9
A country's balance of payments is given by the following equation: BOP = X - M + \( GNP - C \). If the value of X is ₦100 billion, the value of M is ₦80 billion, and the value of GNP is ₦120 billion, what is the value of the balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 10
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000, and the price of good x is ₦5, what is the optimal quantity of good y?
A. 100
B. 120
C. 150
D. 180
Question 11
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, what is the value of the average \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 12
A firm's demand function 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 13
A monopolist's marginal revenue curve lies below the price
A. demand curve
B. supply curve
C. average revenue curve
D. marginal \cost curve
Question 14
A consumer has a utility function U = 2Q1 + 3Q2. If the prices are Q1 = ₦10, Q2 = ₦20, and the consumer's income is ₦1000, find the consumer's optimal bundle.
A. Q1 = 100 units, Q2 = 50 units
B. Q1 = 50 units, Q2 = 75 units
C. Q1 = 0 units, Q2 = 100 units
D. Q1 = 75 units, Q2 = 25 units
Question 15
A firm's average total \cost curve is U-shaped because of the law of
A. diminishing returns
B. increa\sing opportunity \cost
C. law of supply
D. law of demand

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