POST UTME RHEMA UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government of Nigeria has set a budget of ₦10 billion for the agricultural sector. If the government allocates 20% of the budget to irrigation, then the amount allocated to irrigation is
A. ₦1.5 billion
B. ₦2 billion
C. ₦2.5 billion
D. ₦3 billion
Question 2
A country's balance of payments can be affected by changes in its exchange rate. If the country's exchange rate appreciates by 10%, what will happen to its trade balance?
A. It will improve
B. It will worsen
C. It will remain unchanged
D. It will increase
Question 3
The government of a country decides to impose a tax on the sale of a particular commodity. The demand for the commodity is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the tax is imposed at a rate of ₦10 per unit, what will be the new equilibrium price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 4
A firm's production function is given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital and L is labor. If the firm's capital and labor inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 5
A firm's demand function is given by Q = 100 - 2P. If the firm's output is 60 units, then the price at which the firm should sell the output is
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A consumer's demand for a good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price of the good increases by 10%, what will be the new quantity demanded?
A. 80
B. 90
C. 100
D. 110
Question 7
A government imposes a tax on a firm's output. If the firm's supply function is \( Q = 2P - 10 \) and the tax rate is ₦5 per unit, what is the firm's new supply function?
A. \( Q = 2P - 15 \)
B. \( Q = 2P - 20 \)
C. \( Q = 2P - 25 \)
D. \( Q = 2P - 30 \)
Question 8
A consumer's indifference curve is represented by the equation \( u = 2x + 3y \). If the consumer's income is ₦1200 and the prices of goods x and y are ₦4 and ₦6 respectively, what is the consumer's optimal bundle?
A. (20, 15)
B. (30, 10)
C. (25, 12)
D. (35, 8)
Question 9
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. Which of the following scenarios would lead to an improvement in the balance of payments?
A. A 10% increase in export prices and a 5% decrease in import prices
B. A 5% decrease in export prices and a 10% increase in import prices
C. A 10% increase in export prices and a 10% increase in import prices
D. A 5% decrease in export prices and a 5% decrease in import prices
Question 10
A country's GNP at market price is ₦1,800 billion. The net factor income from abroad is ₦150 billion. What is the GNP at factor \cost?
A. ₦1,650 billion
B. ₦1,650 billion
C. ₦1,650 billion
D. ₦1,650 billion
Question 11
A monopolistically competitive firm faces a demand curve that is downward sloping but has a cons\tant elasticity of -2. If the firm's marginal revenue is 100, what is its marginal \cost?
A. 50
B. 75
C. 100
D. 125
Question 12
A country's GDP at market price is ₦1,500 billion. The indirect tax rate is 10%. What is the GDP at factor \cost?
A. ₦1,350 billion
B. ₦1,350 billion
C. ₦1,350 billion
D. ₦1,350 billion
Question 13
A firm's production function is given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital and L is labor. If the firm's capital and labor inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 14
A firm's demand function is given by Qd = 100 - 2P + 3Y, where Qd is the quantity demanded, P is the price, and Y is the income. If the price is $10 and the income is $100, what is the quantity demanded?
A. 60
B. 70
C. 80
D. 90
Question 15
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what is the likely outcome?
A. The firm will increase production to maximize profits.
B. The firm will decrease production to minimize losses.
C. The firm will maintain current production levels.
D. The firm will exit the market.

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