POST UTME RHEMA UNIVERSITY 2018 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 increased by 20%, what is the new quantity demanded?
A. 60
B. 80
C. 100
D. 120
Question 2
A government imposes a tax on a commodity to reduce its consumption. If the tax revenue is used to fund a public good that benefits all consumers, what type of tax is it?
A. Pigovian tax
B. Laffer curve tax
C. Sin tax
D. Polluter pays principle
Question 3
A country's inflation rate is 5% per annum. If the current price level is 100, what will be the price level after 2 years?
A. 105
B. 110
C. 115
D. 120
Question 4
A perfectly competitive market is characterized by which of the following?
A. Many buyers and sellers
B. A \single buyer or seller
C. A \single product
D. A \single market
Question 5
A consumer has the following utility function: U(x,y) = 2x + 3y. The prices of x and y are P_x = 4 and P_y = 5, respectively. If the consumer's income is I = 100, what is the consumer's optimal bundle of x and y?
A. x = 10, y = 5
B. x = 15, y = 10
C. x = 20, y = 15
D. x = 25, y = 20
Question 6
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal \cost curve
C. average revenue curve
D. average \cost curve
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the input of labor increases by 50% and the input of capital remains cons\tant, what will be the percentage change in output?
A. 25%
B. 50%
C. 75%
D. 100%
Question 8
A government's budget can be classified into which of the following categories?
A. Recurrent and Capital
B. Current and Capital
C. Recurrent and Current
D. Capital and Current
Question 9
A monopolist faces a demand curve with the following equation: Q = 100 - 2P. The firm's marginal \cost curve is given by MC = 10 + 2Q. What is the profit-maximizing price and quantity?
A. P = 50, Q = 25
B. P = 75, Q = 12.5
C. P = 90, Q = 5
D. P = 100, Q = 0
Question 10
A perfectly competitive market has a downward-sloping demand curve and a perfectly elastic supply curve. What is the implication of this for the firm's profit-maximizing output?
A. The firm will produce at the minimum point of the average total \cost curve.
B. The firm will produce at the point where marginal revenue equals marginal \cost.
C. The firm will produce at the point where the demand curve intersects the average total \cost curve.
D. The firm will produce at the point where the supply curve intersects the average total \cost curve.
Question 11
A monopolist faces a demand curve given by P = 100 - 2Q. If the firm's marginal \cost is cons\tant at ₦10, what is the profit-maximizing quantity?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 12
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 increased by 20%, what is the new quantity demanded?
A. 60
B. 80
C. 100
D. 120
Question 13
The agricultural sector is a major contributor to Nigeria's
A. GDP
B. GNP
C. inflation rate
D. unemployment rate
Question 14
A firm's demand function is given by Q = 100 - 2P. If the price is 20, what will be the quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 15
A firm's short-run supply curve is upward-sloping because
A. fixed \costs are not fully covered by variable \costs
B. variable \costs are not fully covered by fixed \costs
C. marginal revenue is less than marginal \cost
D. marginal revenue is greater than marginal \cost

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