POST UTME RHEMA UNIVERSITY 2022 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 price at which the quantity demanded is 60?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 2
A country's balance of payments is given by the equation BOP = X - M + \( F - I \), where BOP is the balance of payments, X is the exports, M is the imports, F is the foreign investment, and I is the domestic investment. If the country's exports are ₦50 billion, imports are ₦30 billion, foreign investment is ₦20 billion, and domestic investment is ₦10 billion, what is the value of the balance of payments?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 3
A firm's production function is given by Q = 2L^2 + 3K, where L is labor and K is capital. The firm's \cost function is given by C = 10L + 20K. Find the firm's profit-maximizing level of labor and capital.
A. L = 2 units, K = 3 units
B. L = 3 units, K = 2 units
C. L = 1 unit, K = 4 units
D. L = 4 units, K = 1 unit
Question 4
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce 100 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the optimal combination of labor and capital?
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 30, K = 15
D. L = 15, K = 30
Question 5
A country's tax revenue is given by the equation: TR = T × Y, where T is the tax rate and Y is the national income. If the tax rate is 20% and the national income is ₦10 trillion, calculate the country's tax revenue.
A. ₦2 trillion
B. ₦2.5 trillion
C. ₦3 trillion
D. ₦3.5 trillion
Question 6
A country's economic growth rate can be influenced by various factors. Which of the following factors is NOT a direct cause of a country's economic growth?
A. An increase in the country's population growth rate.
B. An increase in the country's investment rate.
C. An increase in the country's techno\logical progress.
D. An increase in the country's foreign aid.
Question 7
A firm's demand curve is given by the equation Qd = 100 - 2P. If the price of the good is ₦10, what is the quantity demanded?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 8
The government of Nigeria plans to increase the tax rate on agricultural products from 10% to 15%. If the current tax revenue from agriculture is ₦1.2 billion, what will be the new tax revenue?
A. ₦1.5 billion
B. ₦1.8 billion
C. ₦2.1 billion
D. ₦2.4 billion
Question 9
A firm is producing a good with a production function Q = 2L + 3K. If the firm's \cost function is C(L,K) = 10L + 20K, and the firm's revenue function is R(L,K) = 20L + 30K, what is the profit-maximizing level of L and K?
A. (5, 5)
B. (10, 10)
C. (15, 15)
D. (20, 20)
Question 10
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the monopolist produces 20 units, what is the producer surplus?
A. ₦500
B. ₦1000
C. ₦2000
D. ₦3000
Question 11
A firm's revenue function is given by ( R(x) = 100x - 2x^2 ), where ( x ) is the number of units produced. If the firm's marginal revenue is ( MR(x) = 100 - 4x ), find the value of ( x ) at which the marginal revenue is zero.
A. 25
B. 50
C. 75
D. 100
Question 12
A government is considering implementing a value-added tax (VAT) to raise revenue. What is the likely effect of the VAT on the country's inflation rate?
A. The inflation rate will increase.
B. The inflation rate will decrease.
C. The inflation rate will remain unchanged.
D. The inflation rate will be unaffected.
Question 13
A firm's revenue function is given by ( R(x) = 100x - 2x^2 ), where ( x ) is the number of units produced. If the firm's marginal revenue is ( MR(x) = 100 - 4x ), find the value of the marginal \cost at the point where the quantity produced is 25.
A. 50
B. 75
C. 100
D. 125
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 20%, what is the required percentage increase in labor and capital?
A. Labor: 10%, Capital: 10%
B. Labor: 15%, Capital: 15%
C. Labor: 20%, Capital: 20%
D. Labor: 25%, Capital: 25%
Question 15
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

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