POST UTME RHEMA UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's budget constraint is given by the equation 2x + 3y = 12. What is the consumer's opportunity \cost of x?
A. -2
B. -3
C. 2
D. 3
Question 2
A firm's supply function is given by Q = 2P + 100. If the price is decreased by 20%, what is the new quantity supplied?
A. 120
B. 140
C. 160
D. 180
Question 3
A central bank uses open market operations to increase the money supply. Which of the following is a consequence of this action?
A. Interest rates fall
B. The exchange rate appreciates
C. The money supply increases
D. Inflation rises
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P and a marginal revenue curve given by MR = 200 - 4Q. What is the profit-maximizing price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 5
A consumer's indifference curve is steeper than another consumer's indifference curve. What can be concluded about the two consumers?
A. The first consumer has a higher marginal rate of substitution than the second consumer.
B. The first consumer has a lower marginal rate of substitution 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 6
A firm's total revenue is given by the equation TR = 100q - 2q^2. What is the firm's marginal revenue?
A. 100 - 4q
B. 100 - 2q
C. 100 + 2q
D. 100 - q
Question 7
A firm's production function is given by \( Q = 10L^2 \), where ( Q ) is the quantity produced and ( L ) is the quantity of labor used. If the firm wants to produce 100 units of output, how many units of labor will it need to use?
A. 5
B. 10
C. 15
D. 20
Question 8
A firm's total revenue is given by the equation TR = 100q - 2q^2. If the firm's marginal revenue is 50, what is the value of q?
A. 20
B. 30
C. 40
D. 50
Question 9
A country's GDP is given by the formula \( GDP = C + I + G + \( X - M \ \) ), where ( C ) is consumption, ( I ) is investment, ( G ) is government sp\ending, ( X ) is exports, and ( M ) is imports. If the country's GDP is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $30 billion, exports are $40 billion, and imports are $20 billion, what is the value of \( X - M \)?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 10
A firm's \cost function is given by the formula ( C(q) = 2q^2 + 5q + 10 ), where ( q ) is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. $150
B. $250
C. $350
D. $450
Question 11
A country's balance of payments is given by the equation BOP = 100 + 2X - 3M. If the country's exports are ₦200 billion and its imports are ₦300 billion, what is its balance of payments?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 12
A consumer's indifference curve is given by the equation U = 2x + 3y. The consumer's budget constraint is given by the equation 2x + 4y = 100. What is the consumer's optimal bundle?
A. (x, y) = (20, 15)
B. (x, y) = (25, 10)
C. (x, y) = (30, 5)
D. (x, y) = (35, 0)
Question 13
The Marshall-Lerner condition states that a country will experience an improvement in its balance of payments 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 is a necessary condition for this to occur?
A. The country's export demand is elastic
B. The country's import demand is inelastic
C. The country's exchange rate is fixed
D. The country's trade balance is in surplus
Question 14
A country's GDP at market price is ₦1,500 billion, while its GDP at factor \cost is ₦1,400 billion. What is the value of net indirect taxes?
A. ₦100 billion
B. ₦50 billion
C. ₦75 billion
D. ₦25 billion
Question 15
Determine the equilibrium price and quantity of a commodity in a market where the demand function is Qd = 100 - 2P and the supply function is Qs = 2P - 10.
A. ₦50, 50 units
B. ₦75, 75 units
C. ₦100, 100 units
D. ₦125, 125 units

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