POST UTME RSU 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases by 10% and its capital (K) remains cons\tant, what is the likely outcome for the firm's output (Q)?
A. The firm's output will increase by 10%.
B. The firm's output will decrease by 10%.
C. The firm's output will remain cons\tant.
D. The firm's output will increase by 20%.
Question 2
A central bank uses monetary policy to control inflation. If the central bank increases the reserve requirement for commercial banks, what is the effect on the money supply?
A. Increase in money supply
B. Decrease in money supply
C. No change in money supply
D. Increase in interest rates
Question 3
A consumer's indifference curve is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 50, and the prices of the two goods are $2 and $5, respectively, what is the consumer's optimal bundle of goods?
A. x = 2, y = 5
B. x = 3, y = 4
C. x = 4, y = 3
D. x = 5, y = 2
Question 4
A firm's demand for labor is given by the equation L = 100 - 2P, where L is the labor and P is the price. If the price of labor is ₦20, what is the demand for labor?
A. L = 80 units
B. L = 90 units
C. L = 100 units
D. L = 110 units
Question 5
A firm operating in a perfectly competitive market produces a homogeneous product. If the firm's average total \cost (ATC) curve intersects its marginal \cost (MC) curve at a point where MC < ATC, what is the likely outcome for the firm's profit?
A. The firm will increase its production to maximize profit.
B. The firm will decrease its production to minimize loss.
C. The firm will operate at a loss.
D. The firm will break even.
Question 6
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are L = 4 and H = 9, respectively, what is the marginal product of capital (MPK) when the firm is producing at the given input levels?
A. 1.5
B. 2.5
C. 3.5
D. 4.5
Question 7
A country's balance of payments is in equilibrium when the current account and capital account are balanced. If a country's current account is in deficit by ₦100 billion and its capital account is in surplus by ₦150 billion, what is the balance of payments balance?
A. ₦50 billion surplus
B. ₦50 billion deficit
C. ₦100 billion surplus
D. ₦100 billion deficit
Question 8
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are L = 4 and H = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the given input levels?
A. 1.5
B. 2.5
C. 3.5
D. 4.5
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. If the opportunity \cost of producing one more unit of a good is ₦100, and the price of the good is ₦120, what is the opportunity \cost of producing one more unit of the good in terms of the good itself?
A. 1 unit of the good
B. 2 units of the good
C. 3 units of the good
D. 4 units of the good
Question 10
A country's balance of payments (BOP) account is in equilibrium when its current account is equal to its capital account. If the country's current account is in deficit, what is the likely outcome for its capital account?
A. The capital account will be in surplus.
B. The capital account will be in deficit.
C. The capital account will be in equilibrium.
D. The capital account will be zero.
Question 11
A country's agricultural sector is characterized by a high degree of market power, leading to a significant price distortion. If the government intervenes to correct the price distortion, what is the likely outcome for the agricultural sector?
A. The agricultural sector will become more competitive.
B. The agricultural sector will become less competitive.
C. The agricultural sector will experience a decrease in output.
D. The agricultural sector will experience an increase in output.
Question 12
A firm faces a downward-sloping demand curve and a fixed \cost of production. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain cons\tant
D. Total revenue will increase at a decrea\sing rate
Question 13
A government wants to reduce inequality in a country by redistributing income from the rich to the poor. What type of economic policy is this?
A. Progressive taxation
B. Regressive taxation
C. Proportional taxation
D. Redistributive policy
Question 14
A consumer's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the consumer's income is $100 and the price of the good is $5, what is the consumer's quantity demanded?
A. 20
B. 30
C. 40
D. 50
Question 15
A firm's production function is given by the equation Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the output?
A. Q = 25 units
B. Q = 30 units
C. Q = 35 units
D. Q = 40 units

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