POST UTME RSU 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
An increase in the price of a commodity leads to a decrease in its demand. This is an example of a:
A. Income effect
B. Substitution effect
C. Price elasticity of demand
D. Law of demand
Question 2
Agricultural production in Nigeria is characterized by low productivity and limited mechanization. Which of the following policies would most likely increase agricultural productivity?
A. Providing subsidies to farmers
B. Investing in irrigation infrastructure
C. Promoting the use of organic farming practices
D. Implementing a policy of crop rotation
Question 3
Suppose a firm faces a downward-sloping demand curve and an upward-sloping supply curve. If the price elasticity of demand is greater than 1, what will happen to the firm's revenue if the price increases by 10%?
A. Revenue will increase by 10%
B. Revenue will decrease by 10%
C. Revenue will remain unchanged
D. Revenue will increase by 20%
Question 4
A firm's demand function is given by Q = 100 - 2P. If the price of the good is ₦50, what is the quantity demanded?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 5
Consider a firm operating in a perfectly competitive market with cons\tant returns to scale. If the firm's production function is given by Q = 2L + 3K, where Q is output, L is labor, and K is capital, what is the long-run equilibrium output if the firm's labor and capital inputs are 10 units each?
A. 20
B. 30
C. 40
D. 50
Question 6
A government imposes a tax on a good, which causes the supply curve to shift to the left. What is the effect on the equilibrium price and quantity?
A. Price increases and quantity decreases
B. Price decreases and quantity increases
C. Price increases and quantity increases
D. Price decreases and quantity decreases
Question 7
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production functions are given by X = 2L + 3K and Y = 3L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the total output?
A. 30
B. 40
C. 50
D. 60
Question 8
A country's GDP is ₦1 trillion. The country's GNP is ₦1.1 trillion. What is the net factor income from abroad?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 9
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 10
The National Bureau of Statistics (NBS) reports that the Gross Domestic Product (GDP) of Nigeria grew by 2.5% in the first quarter of the year. However, the GDP at factor \cost decreased by 1.2%. What is the implied change in the implicit price deflator?
A. 3.7%
B. 4.7%
C. 5.7%
D. 6.7%
Question 11
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is the consumption, I is the investment, G is the government sp\ending, X is the exports and M is the imports. If the consumption is 500, the investment is 200, the government sp\ending is 300, the exports are 100 and the imports are 80, what is the GDP?
A. 1000
B. 1200
C. 1400
D. 1600
Question 12
A consumer has a utility function given by ( u(x,y) = 2x + 3y ). If the consumer's budget constraint is \( 2x + 3y = 12 \), find the consumer's optimal bundle of x and y.
A. \( x = 2, y = 4 \)
B. \( x = 4, y = 2 \)
C. \( x = 3, y = 3 \)
D. \( x = 1, y = 5 \)
Question 13
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 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
A firm's production function is given by the equation Q = 100K^0.5L^0.5, where Q is the quantity produced, K is the capital and L is the labor. If the firm has 100 units of capital and 100 units of labor, what is the quantity produced?
A. 100
B. 200
C. 300
D. 400
Question 15
A firm's total revenue is given by TR = 100Q - 2Q^2. If the firm produces 20 units, what is its total revenue?
A. ₦1000
B. ₦1200
C. ₦1400
D. ₦1600

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