POST UTME RHEMA UNIVERSITY 2022 Economics | Objective

Are you preparing for POST UTME RHEMA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 50 - 2Q. Find the firm's equilibrium price and quantity.
Correct A. ₦20, 50 units
B. ₦30, 40 units
C. ₦40, 30 units
D. ₦50, 20 units

Correct Answer: A

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Question 2
A consumer has the following utility function: U(x, y) = 2x + 3y. The prices of x and y are ₦5 and ₦3 respectively. The consumer's budget is ₦20. Find the consumer's optimal consumption bundle.
A. x = 2 units, y = 4 units
B. x = 4 units, y = 2 units
Correct C. x = 3 units, y = 3 units
D. x = 1 unit, y = 5 units

Correct Answer: C

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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.
Correct 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

Correct Answer: A

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Question 4
A country's GDP is given by GDP = C + I + G + \( X - M \). The country's consumption function is given by C = 0.8Y, where Y is national income. The country's investment function is given by I = 0.2Y. The government's exp\enditure is ₦100. The country's exports are ₦200 and imports are ₦150. Find the country's national income.
A. ₦500
B. ₦600
Correct C. ₦700
D. ₦800

Correct Answer: C

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Question 5
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal revenue (MR) is given by MR = 50 - 2Q. Find the monopolist's equilibrium price and quantity.
Correct A. ₦20, 50 units
B. ₦30, 40 units
C. ₦40, 30 units
D. ₦50, 20 units

Correct Answer: A

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Question 6
Consider a consumer with a utility function U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the optimal bundle of x and y?
A. (100, 100)
Correct B. (200, 50)
C. (50, 200)
D. (0, 0)

Correct Answer: B

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Question 7
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, what is the optimal level of L and K?
A. (5, 5)
Correct B. (10, 10)
C. (15, 15)
D. (20, 20)

Correct Answer: B

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Question 8
The demand function for a good is given by Q = 100 - 2P. If the supply function is Q = 2P - 10, what is the equilibrium price and quantity?
Correct A. (20, 60)
B. (30, 70)
C. (40, 80)
D. (50, 90)

Correct Answer: A

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Question 9
A country's balance of payments is given by the following equations: BOP = X - M, X = 100 + 2Y, and M = 50 + Y. If the country's income is ₦1000, what is the balance of payments?
A. ₦200
Correct B. ₦300
C. ₦400
D. ₦500

Correct Answer: B

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Question 10
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)
Correct B. (10, 10)
C. (15, 15)
D. (20, 20)

Correct Answer: B

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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
Correct B. 50
C. 75
D. 100

Correct Answer: B

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Question 12
A country's GDP is ( 100 billion ) and its GNP is ( 120 billion ). What is the value of the net factor income from abroad?
A. 20 billion
B. 30 billion
Correct C. 40 billion
D. 50 billion

Correct Answer: C

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Question 13
A firm's demand function is given by \( Q = 100 - 2P \), where ( Q ) is the quantity demanded and ( P ) is the price. If the firm's elasticity of demand is \( E_d = -2 \), what is the value of the price elasticity of demand at the point where the quantity demanded is 50?
A. -1
Correct B. -2
C. -3
D. -4

Correct Answer: B

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Question 14
A government imposes a tax of ( 10% ) on a good. If the supply function is given by \( Q = 100 + 2P \), what is the new supply function after the tax is imposed?
A. Q = 100 + 2.1P
Correct B. Q = 100 + 2.2P
C. Q = 100 + 2.3P
D. Q = 100 + 2.4P

Correct Answer: B

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Question 15
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
Correct B. 75
C. 100
D. 125

Correct Answer: B

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Question 16
Consider a country with a GDP of ₦10 trillion and a GNP of ₦11 trillion. If the country's population is 200 million, calculate the per capita GDP and GNP.
A. ₦50,000
Correct B. ₦55,000
C. ₦60,000
D. ₦65,000

Correct Answer: B

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Question 17
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue is MR = 50 - 2Q, find the firm's equilibrium price and quantity.
A. P = 40, Q = 30
B. P = 45, Q = 25
Correct C. P = 50, Q = 20
D. P = 55, Q = 15

Correct Answer: C

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Question 18
A country's balance of payments is given by the following equation: BOP = X - M - \( F - I \). If the country's exports (X) are ₦500 billion, imports (M) are ₦300 billion, foreign direct investment (F) is ₦200 billion, and domestic investment (I) is ₦100 billion, calculate the country's balance of payments.
Correct A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion

Correct Answer: A

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Question 19
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue is MR = 50 - 2Q, find the firm's equilibrium price and quantity.
A. P = 40, Q = 30
B. P = 45, Q = 25
Correct C. P = 50, Q = 20
D. P = 55, Q = 15

Correct Answer: C

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Question 20
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
Correct B. ₦2.5 trillion
C. ₦3 trillion
D. ₦3.5 trillion

Correct Answer: B

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Question 21
A firm is a price-taker in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
Correct A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.

Correct Answer: A

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Question 22
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
Correct B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

Correct Answer: B

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Question 23
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
Correct B. 30 units
C. 40 units
D. 50 units

Correct Answer: B

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Question 24
A country's agricultural sector is characterized by a high degree of monopolistic competition. What is the likely effect of an increase in the price of fertilizers on the agricultural sector?
Correct A. The agricultural sector will experience a decrease in output.
B. The agricultural sector will experience an increase in output.
C. The agricultural sector's output will remain unchanged.
D. The agricultural sector will experience a decrease in employment.

Correct Answer: A

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Question 25
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?
Correct 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.

Correct Answer: A

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