POST UTME RHEMA UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government of Nigeria is considering a policy to increase the minimum wage from ₦30,000 to ₦50,000 per month. If the average worker has a marginal propensity to consume of 0.9, what is the increase in aggregate demand?
A. ₦48,000
B. ₦60,000
C. ₦72,000
D. ₦80,000
Question 2
A firm's demand curve is given by the equation Qd = 100 - 2P, and the supply curve is given by the equation Qs = 2P - 100. What is the equilibrium price and quantity?
A. P = ₦50, Q = 150
B. P = ₦75, Q = 100
C. P = ₦100, Q = 50
D. P = ₦150, Q = 25
Question 3
A firm is producing a good with a total revenue of ₦120,000 and a total \cost of ₦100,000. If the price elasticity of demand is -1.5, what is the price elasticity of supply?
A. 0.5
B. 1
C. 1.5
D. 2
Question 4
A firm is operating in a perfectly competitive market. The demand curve is given by \( Q = 100 - 2P \) and the supply curve is given by \( Q = 20 + 5P \). Find the equilibrium price and quantity.
A. P = ₦10, Q = 60
B. P = ₦20, Q = 40
C. P = ₦30, Q = 20
D. P = ₦40, Q = 0
Question 5
A firm is operating in a perfectly competitive market. The demand curve is given by \( Q = 100 - 2P \) and the supply curve is given by \( Q = 20 + 5P \). Find the equilibrium price and quantity.
A. P = ₦10, Q = 60
B. P = ₦20, Q = 40
C. P = ₦30, Q = 20
D. P = ₦40, Q = 0
Question 6
Calculate the returns to scale for a firm that experiences an increase in output from 100 units to 225 units when the input of labor increases from 5 workers to 9 workers.
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale
Question 7
A firm faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2. If the firm's marginal revenue is MR = 50 - 2Q, what is the firm's optimal price?
A. P = $20
B. P = $30
C. P = $40
D. P = $50
Question 8
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are $4 and $6 respectively, and the consumer's income is $100, what is the consumer's optimal level of y?
A. y = 10
B. y = 15
C. y = 20
D. y = 25
Question 9
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the firm's \cost function is C(L,K) = 2L + 3K, what is the firm's optimal level of labor and capital?
A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 9
D. L = 9, K = 16
Question 10
A government budget has a total exp\enditure of ₦2,500 billion and a total revenue of ₦2,200 billion. What is the budget deficit?
A. ₦300 billion
B. ₦500 billion
C. ₦700 billion
D. ₦1,000 billion
Question 11
A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. What is the net factor income from abroad?
A. ₦100 billion
B. ₦50 billion
C. ₦0 billion
D. ₦-50 billion
Question 12
A country's GDP is $100 billion. The government imposes a 10% tax on all goods and services. What is the new GDP?
A. $90 billion
B. $100 billion
C. $110 billion
D. $120 billion
Question 13
A firm is considering two different production processes. Process A has a fixed \cost of $10,000 and a variable \cost of $5 per unit. Process B has a fixed \cost of $20,000 and a variable \cost of $3 per unit. If the firm produces 10,000 units, which process will result in a lower total \cost?
A. Process A
B. Process B
C. Both processes will result in the same total \cost.
D. Neither process will result in a lower total \cost.
Question 14
A firm's demand function is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is ₦20, what is the quantity demanded?
A. 10
B. 20
C. 30
D. 40
Question 15
A country's population is 20 million, and its GDP per capita is ₦75,000. What is the total GDP?
A. ₦1,500 billion
B. ₦1,800 billion
C. ₦2,000 billion
D. ₦2,500 billion

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