POST UTME RSU 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units, what is the total \cost?
A. 1000
B. 1200
C. 1500
D. 1800
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price and quantity?
A. \( P = 40, Q = 30 \)
B. \( P = 50, Q = 25 \)
C. \( P = 60, Q = 20 \)
D. \( P = 70, Q = 15 \)
Question 3
A government imposes a tax on a firm's output. If the firm's pre-tax price is ₦100 and the tax rate is 20%, what is the firm's new price?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 4
A firm operates in a perfectly competitive market. If the market price is $10 and the firm's marginal \cost is $8, what is the firm's profit-maximizing output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 5
A consumer has a utility function U(x, y) = 2x + 3y. The prices of x and y are $2 and $3 respectively. What is the consumer's budget constraint?
A. \( 2x + 3y = 6 \)
B. \( 2x + 3y = 12 \)
C. \( 2x + 3y = 18 \)
D. \( 2x + 3y = 24 \)
Question 6
A firm is producing a good u\sing a production function Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, and the firm's budget constraint is 100L + 200K = ₦100,000, what is the optimal level of production?
A. 200 units
B. 250 units
C. 300 units
D. 350 units
Question 7
A consumer's utility function is given by U = 2x + 3y. If the prices of x and y are ₦5 and ₦10 respectively, and the consumer's budget is ₦100, what is the optimal level of consumption?
A. 10 units of x and 5 units of y
B. 15 units of x and 3 units of y
C. 20 units of x and 2 units of y
D. 25 units of x and 1 unit of y
Question 8
A country's agricultural sector is characterized by the following production function: Q = 200L^0.5K^0.5. If the country has 50 laborers and 50 capital units, what is the total output?
A. 1000 units
B. 2000 units
C. 3000 units
D. 4000 units
Question 9
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will decrease its output
B. The firm will increase its output
C. The firm's output will remain unchanged
D. The firm will exit the market
Question 10
A firm's revenue function is given by R(q) = 15q^2 - 5q. If the firm produces 20 units, what is the total revenue?
A. 1000
B. 1200
C. 1500
D. 1800
Question 11
Suppose 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 supply of the product is given by the equation Qs = 2P - 10, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦50, 20 units
B. ₦75, 30 units
C. ₦100, 40 units
D. ₦125, 50 units
Question 12
A firm is producing a good u\sing a production function Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, and the firm's budget constraint is 100L + 200K = ₦100,000, what is the optimal level of production?
A. 200 units
B. 250 units
C. 300 units
D. 350 units
Question 13
A firm is producing a good with a production function given by Q = 2L^2 + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, find the optimal level of labor and capital.
A. L = 5 units, K = 10 units
B. L = 10 units, K = 20 units
C. L = 15 units, K = 30 units
D. L = 20 units, K = 40 units
Question 14
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦20 and ₦30 respectively, find the elasticity of demand.
A. Unit elastic
B. Inelastic
C. Perfectly elastic
D. Perfectly inelastic
Question 15
A country's agricultural sector is characterized by the following production function: Q = 100L^0.5K^0.5. If the country has 100 laborers and 100 capital units, what is the total output?
A. 1000 units
B. 2000 units
C. 3000 units
D. 4000 units

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