POST UTME RSU 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, it will experience a
A. increase in the quantity demanded
B. decrease in the quantity demanded
C. increase in the price of the commodity
D. decrease in the price of the commodity
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the point where the marginal product of capital (MPK) is 1?
A. 1
B. 2
C. 3
D. 4
Question 3
A firm's marginal \cost is given by the equation \( MC = 2x + 5 \), where x is the number of units produced. If the firm produces 10 units, what is its marginal \cost?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 4
The government of a country imposes a tax on a commodity. The tax revenue is used to finance a public good. The effect of the tax on the equilibrium price and quantity of the commodity is shown in the diagram below.
A. The tax causes a shift in the supply curve, resulting in a higher equilibrium price and quantity.
B. The tax causes a shift in the demand curve, resulting in a lower equilibrium price and quantity.
C. The tax causes a shift in the supply curve, resulting in a lower equilibrium price and quantity.
D. The tax causes a shift in the demand curve, resulting in a higher equilibrium price and quantity.
Question 5
A diagram of a firm's demand curve is shown below. If the firm is currently producing at point A, what is the price elasticity of demand?
A. elastic
B. inelastic
C. unit elastic
D. perfectly inelastic
Question 6
A firm's demand function is given by Q = 100 - 2P + 3X, where Q is the quantity demanded, P is the price, and X is the income. If the price is ₦20 and the income is ₦500, what is the quantity demanded?
A. 80
B. 90
C. 100
D. 110
Question 7
The government of Nigeria plans to increase the production of rice by 20% in the next fiscal year. If the current production level is 5 million metric tons, what will be the new production level?
A. 5.5 million metric tons
B. 6 million metric tons
C. 6.5 million metric tons
D. 7 million metric tons
Question 8
The Nigerian government has introduced a new monetary policy to reduce inflation. The policy involves increa\sing the reserve requirement for commercial banks and reducing the money supply. However, the policy has been criticized for being too restrictive and reducing economic growth. Which of the following is a potential consequence of this policy?
A. Reduced inflation and improved economic growth
B. Increased inflation and reduced economic growth
C. Reduced unemployment and improved living s\tandards
D. Increased government revenue and reduced poverty
Question 9
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, what is the total \cost of production?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 10
A country's balance of payments is in equilibrium when the current account and capital account are balanced. If the country experiences a trade deficit, it will
A. experience a capital account surplus
B. experience a capital account deficit
C. experience a trade surplus
D. experience a trade deficit
Question 11
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's output is 100 units and the wage rate is ₦10 per unit of labor, find the optimal level of labor.
A. 10
B. 20
C. 30
D. 40
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to maximize its output, it should
A. increase both labor and capital
B. increase labor and decrease capital
C. decrease labor and increase capital
D. decrease both labor and capital
Question 13
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 4
Question 14
The Nigerian government has introduced a new policy to increase industrial production. The policy involves providing subsidies to industries and investing in infrastructure. However, the policy has been criticized for being too expensive and not addres\sing the root causes of low industrial productivity. Which of the following is a potential consequence of this policy?
A. Increased industrial production and improved economic growth
B. Reduced industrial production and increased unemployment
C. Increased government debt and reduced economic growth
D. Improved living s\tandards and reduced poverty
Question 15
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y.
A. (20, 20)
B. (40, 10)
C. (30, 15)
D. (25, 25)

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