POST UTME RSU 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve with the following equation: Q = 100 - 2P. The monopolist's marginal \cost is cons\tant at ₦20. What is the profit-maximizing price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor (MPL) and the marginal product of capital (MPK)?
A. MPL = 0.5, MPK = 0.25
B. MPL = 0.25, MPK = 0.5
C. MPL = 0.5, MPK = 1
D. MPL = 1, MPK = 0.5
Question 3
A government is considering a policy to reduce poverty in a rural area. The policy involves providing subsidies to farmers to increase crop yields. If the government's budget for the policy is ₦100 million and the \cost of providing subsidies to each farmer is ₦50,000, how many farmers can be subsidized with the available budget?
A. 1000
B. 2000
C. 5000
D. 10000
Question 4
A monopolist faces a demand curve given by Q = 100 - P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing quantity of output?
A. 20
B. 30
C. 40
D. 50
Question 5
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 percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 6
A firm's production function is given by Q(x) = 2x^2 + 5x + 1, where x is the number of units of labor employed. If the firm's \cost function is C(x) = 2x^2 + 5x + 1, find the value of x that minimizes \cost.
A. 1
B. 2
C. 3
D. 4
Question 7
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
A. 1
B. 2
C. 3
D. 4
Question 8
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $10 billion, exports are $20 billion, and imports are $15 billion, what is the value of the country's net exports (NX)?
A. $5 billion
B. $10 billion
C. $15 billion
D. $20 billion
Question 9
The opportunity \cost of producing one more unit of a good is the value of the next best alternative that must be given up. What is the opportunity \cost of producing one more unit of wheat in a country where the marginal product of labor is 10 units of wheat per hour and the wage rate is ₦50 per hour?
A. ₦5
B. ₦10
C. ₦20
D. ₦50
Question 10
A consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of units of good X consumed and y is the number of units of good Y consumed. If the consumer's budget constraint is 2x + 3y = 10 and the price of good X is ₦2 per unit and the price of good Y is ₦3 per unit, find the optimal consumption bundle that maximizes utility.
A. (2, 2)
B. (3, 1)
C. (4, 0)
D. (0, 4)
Question 11
A central bank uses the money multiplier to determine the money supply in an economy. If the money multiplier is 10 and the reserve requirement is 20%, what is the money supply if the central bank injects $100 million into the economy?
A. $1 billion
B. $10 billion
C. $100 billion
D. $1 trillion
Question 12
A monopolist faces a demand curve with the following equation: Q = 100 - 2P. The monopolist's marginal \cost is cons\tant at ₦20. What is the profit-maximizing quantity?
A. Q = 20
B. Q = 30
C. Q = 40
D. Q = 50
Question 13
A country's inflation rate is given by the equation π = \( M2 - M1 \) / M1, where π is the inflation rate, M2 is the money supply, and M1 is the monetary base. If the money supply (M2) is ₦1.5 trillion and the monetary base (M1) is ₦1.0 trillion, what is the country's inflation rate?
A. 15%
B. 20%
C. 25%
D. 30%
Question 14
A monopolist faces a demand curve given by Qd = 100 - 2P and has a marginal \cost (MC) of $10. If the firm's current price is $20, what is the deadweight loss (DWL) of the monopoly?
A. $10
B. $20
C. $30
D. $40
Question 15
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P and the marginal \cost (MC) of each firm is cons\tant at $10, what is the equilibrium price and quantity?
A. $20, 40 units
B. $30, 60 units
C. $40, 80 units
D. $50, 100 units

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