Exam Body

Year

Subject

Paper Type

POST UTME RSU 2020 Economics | Objective

Are you preparing for POST UTME RSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1

Determine the value of the elasticity of demand for a good when the price increases from ₦100 to ₦120 and the quantity demanded decreases from 100 units to 80 units.

A. 0.5

Correct B. 1.0

C. 1.5

D. 2.0

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A government budget is prepared for a fiscal year. The budget includes a revenue of ₦500 million and an exp\enditure of ₦600 million. What is the budget deficit?

A. ₦100 million

Correct B. ₦200 million

C. ₦300 million

D. ₦400 million

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A firm produces two goods, A and B. The production of good A requires 2 units of labor and 1 unit of capital, while the production of good B requires 1 unit of labor and 2 units of capital. If the firm has 10 units of labor and 15 units of capital, what is the opportunity \cost of producing 5 units of good A?

A. 5 units of good B

B. 10 units of good B

Correct C. 15 units of good B

D. 20 units of good B

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

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

Correct B. ₦200 billion

C. ₦300 billion

D. ₦400 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

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

Correct B. 75 units

C. 100 units

D. 125 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

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%

Correct B. Revenue will decrease by 10%

C. Revenue will remain unchanged

D. Revenue will increase by 20%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

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.

Correct A. \( x = 2, y = 4 \)

B. \( x = 4, y = 2 \)

C. \( x = 3, y = 3 \)

D. \( x = 1, y = 5 \)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production functions are given by \( Q_A = 2L^0.5K^{0.5} \) and \( Q_B = 3L^{0.5}K^{0.5} \). If the firm has 100 units of labor and 100 units of capital, how many units of good A and good B should the firm produce?

Correct A. \( Q_A = 100, Q_B = 150 \)

B. \( Q_A = 150, Q_B = 100 \)

C. \( Q_A = 200, Q_B = 50 \)

D. \( Q_A = 50, Q_B = 200 \)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A consumer has a budget of ₦1000 and faces a price of ₦200 for good A and ₦300 for good B. If the consumer's utility function is given by ( u(x,y) = 2x + 3y ), find the consumer's optimal bundle of x and y.

Correct A. \( x = 2, y = 3 \)

B. \( x = 3, y = 2 \)

C. \( x = 4, y = 1 \)

D. \( x = 1, y = 4 \)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A firm faces a demand curve given by \( Q = 100 - 2P \) and a supply curve given by \( Q = 2P - 100 \). Find the equilibrium price and quantity.

Correct A. \( P = 50, Q = 50 \)

B. \( P = 75, Q = 25 \)

C. \( P = 25, Q = 75 \)

D. \( P = 100, Q = 0 \)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

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

Correct D. Law of demand

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A monopolistically competitive firm faces a downward-sloping demand curve due to:

Correct A. Product differentiation

B. Adverti\sing

C. Barriers to entry

D. Perfectly elastic demand

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

Agricultural development in Nigeria can be enhanced by:

A. Increased government subsidies

B. Improved irrigation systems

C. Increased foreign investment

Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

The concept of returns to scale refers to the change in the:

A. Average product

B. Marginal product

Correct C. Total product

D. Average \cost

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

The government can use fiscal policy to increase aggregate demand by:

A. Increa\sing taxes

B. Decrea\sing government sp\ending

Correct C. Increa\sing government sp\ending

D. Decrea\sing taxes

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

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%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2P. If the firm produces 20 units, what is the price at which it sells the product?

A. ₦20

B. ₦30

Correct C. ₦40

D. ₦50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

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

Correct C. 50

D. 60

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

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 ₦30 billion, investment is ₦20 billion, government sp\ending is ₦15 billion, exports are ₦25 billion, and imports are ₦10 billion, what is the value of X?

A. ₦30 billion

B. ₦35 billion

C. ₦40 billion

Correct D. ₦45 billion

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A firm's production function is given by Q = 2L^0.5 + 3K^0.5, where Q is output, L is labor, and K is capital. If the firm has 4 units of labor and 9 units of capital, what is the output?

A. 10

B. 15

Correct C. 20

D. 25

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the profit-maximizing price?

A. ₦50

Correct B. ₦60

C. ₦70

D. ₦80

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

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

Correct B. ₦1200

C. ₦1400

D. ₦1600

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A country's GDP is ₦100 billion. Its imports are ₦20 billion and its exports are ₦15 billion. What is its balance of trade?

A. ₦5 billion surplus

Correct B. ₦5 billion deficit

C. ₦10 billion surplus

D. ₦10 billion deficit

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A firm's marginal revenue is given by MR = 100 - 4Q. If the firm produces 10 units, what is its marginal revenue?

A. ₦80

B. ₦90

Correct C. ₦100

D. ₦110

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A country's GNP is ₦120 billion. Its GDP is ₦100 billion. What is the country's net factor income from abroad?

A. ₦10 billion

Correct B. ₦20 billion

C. ₦30 billion

D. ₦40 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

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:

Chat with Support