POST UTME RSU 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Suppose the demand function for a product is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10. If the market is in equilibrium, what is the price of the product?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 6 units, and its capital input remains cons\tant at 9 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A country's government imposes a tax on a particular good, cau\sing the supply curve to shift to the left. If the demand curve is elastic, what will happen to the equilibrium price and quantity?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases
Question 4
A firm is facing a production function given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 and the price of capital is ₦200, what is the \cost-minimizing ratio of labor to capital?
A. 1:2
B. 1:3
C. 2:1
D. 3:2
Question 5
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 10L^0.5K^0.5. If the price of labor is ₦100 and the price of capital is ₦200, what is the \cost-minimizing ratio of labor to capital?
A. 1:2
B. 1:3
C. 2:1
D. 3:2
Question 6
A consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of units of good X and y is the number of units of good Y. If the consumer's budget constraint is 2x + 3y = 12, find the optimal values of x and y.
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 7
A firm's marginal revenue (MR) and marginal \cost (MC) curves intersect at point E, where MR = 120 and MC = 100. If the firm's price elasticity of demand is 2, what is the optimal quantity of output?
A. 60
B. 80
C. 100
D. 120
Question 8
The government of a country decides to implement a policy of price control to regulate the prices of essential commodities. Which of the following is a likely consequence of this policy?
A. Increased supply of essential commodities
B. Decreased demand for essential commodities
C. Black market for essential commodities
D. Increased government revenue
Question 9
A consumer has a budget of ₦1000 and a demand function given by Qd = 2P. If the price of the product is ₦200, how many units of the product will the consumer buy?
A. 2
B. 3
C. 4
D. 5
Question 10
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the firm's marginal revenue is $20 and its marginal \cost is $15, what is the optimal quantity to produce?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 11
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 consumer surplus?
A. ₦250
B. ₦500
C. ₦750
D. ₦1000
Question 12
A country's GDP is $100 billion, its GNP is $120 billion, and its net factor income from abroad is $10 billion. What is the country's national income?
A. $110 billion
B. $120 billion
C. $130 billion
D. $140 billion
Question 13
A monopolist faces a downward-sloping demand curve. What is the correct explanation for the firm's decision to produce at a point where the marginal revenue equals the marginal \cost?
A. The firm is maximizing its profits by producing at the point where the marginal revenue equals the marginal \cost.
B. The firm is minimizing its \costs by producing at the point where the marginal revenue equals the marginal \cost.
C. The firm is producing at the point where the demand curve intersects the supply curve.
D. The firm is producing at the point where the marginal revenue equals the average revenue.
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are L = 4 and K = 9, respectively, what is the firm's output?
A. 8
B. 12
C. 16
D. 20
Question 15
A firm's \cost function is given by C(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's revenue function is R(x) = 4x^2 + 5x + 1, find the value of x that minimizes \cost.
A. 1
B. 2
C. 3
D. 4

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: