POST UTME RHEMA UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of scarcity is closely related to the idea of opportunity \cost. Explain how the opportunity \cost of a choice is determined in a situation where a consumer has to choose between two goods, A and B, with the following prices and quantities: A = ₦100, Q = 10 units; B = ₦80, Q = 15 units. Assume that the consumer has a budget of ₦1,000.
A. The opportunity \cost is determined by the price of good B.
B. The opportunity \cost is determined by the quantity of good A.
C. The opportunity \cost is determined by the price of good A and the quantity of good B.
D. The opportunity \cost is determined by the quantity of good A and the price of good B.
Question 2
A government imposes a tax on a firm's output. The firm's \cost function is given by C(x) = 2x^2 + 5x + 10 and the tax rate is 0.2. What is the new profit function?
A. P(x) = 15x - 1.5x^2
B. P(x) = 15x + 1.5x^2
C. P(x) = 15x - 2x^2
D. P(x) = 15x + 2x^2
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases by 20% and its capital (K) remains cons\tant, what is the percentage change in output (Q)?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A firm's demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what is the optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
The Nigerian government is considering a policy to increase the price of a commodity by 20%. If the current price is ₦100, what will be the new price?
A. ₦120
B. ₦100
C. ₦80
D. ₦60
Question 6
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 -2, what is the price at which the quantity demanded is 60?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
A farmer produces wheat and maize. The production functions for wheat and maize are given by W(x, y) = 2x^0.5y^0.5 and M(x, y) = 3x^0.5y^0.5 respectively. If the farmer has 100 units of labor and 50 units of capital, what is the maximum output of wheat?
A. 50
B. 60
C. 70
D. 80
Question 8
A monopolist faces a demand curve given by Qd = 100 - 2P. If the firm produces at a level where MR = MC, what is the price?
A. 25
B. 50
C. 75
D. 100
Question 9
A country's balance of payments (BOP) is in equilibrium when the current account (CA) is equal to the capital account (KA). If the country's CA is ₦100 billion and its KA is ₦50 billion, what is the country's net foreign exchange earnings?
A. ₦50 billion
B. ₦75 billion
C. ₦100 billion
D. ₦125 billion
Question 10
A country's GNP is ₦1,500 billion. The country's GDP is ₦1,200 billion. What is the country's net factor income from abroad?
A. ₦300 billion
B. ₦200 billion
C. ₦100 billion
D. ₦50 billion
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal revenue (MR) function is given by MR = 200 - 2Q. What is the monopolist's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 12
A firm has a production function of Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, what is the \cost-minimizing combination of labor and capital if the output is 100?
A. L = 20, K = 10
B. L = 15, K = 15
C. L = 10, K = 20
D. L = 5, K = 25
Question 13
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm's revenue function is R(q) = 20q^2 - 5q + 10, what is the firm's profit function?
A. P(q) = 18q^2 - 15q + 5
B. P(q) = 18q^2 + 15q + 5
C. P(q) = 18q^2 - 15q - 5
D. P(q) = 18q^2 + 15q - 5
Question 14
A country's GDP is ₦1,000 billion. The country's imports are ₦200 billion and its exports are ₦300 billion. What is the country's balance of trade?
A. ₦100 billion surplus
B. ₦100 billion deficit
C. ₦200 billion surplus
D. ₦200 billion deficit
Question 15
A firm's average total \cost (ATC) curve is U-shaped. If the firm's short-run ATC curve is initially downward sloping, what can be inferred about the firm's production techno\logy?
A. The firm's production techno\logy exhibits increa\sing returns to scale.
B. The firm's production techno\logy exhibits decrea\sing returns to scale.
C. The firm's production techno\logy exhibits cons\tant returns to scale.
D. The firm's production techno\logy exhibits diminishing returns to scale.

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