POST UTME RSU 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the price of the good is ₦100, the wage rate is ₦20 per unit of labor, and the rental rate of capital is ₦30 per unit of capital, what is the profit-maximizing level of capital?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 2
The government of Nigeria has introduced a new economic development plan aimed at reducing poverty and inequality. The plan involves increa\sing public exp\enditure on education and healthcare by 20% and reducing the tax rate on small bu\sinesses by 10%. If the initial public exp\enditure on education and healthcare was ₦50 billion, and the initial tax rate on small bu\sinesses was 20%, what is the new tax revenue from small bu\sinesses after the plan?
A. ₦40 billion
B. ₦45 billion
C. ₦50 billion
D. ₦55 billion
Question 3
The government of Nigeria has introduced a new economic development plan aimed at reducing poverty and inequality. The plan involves increa\sing public exp\enditure on education and healthcare by 20% and reducing the tax rate on small bu\sinesses by 10%. If the initial public exp\enditure on education and healthcare was ₦50 billion, and the initial tax rate on small bu\sinesses was 20%, what is the new tax revenue from small bu\sinesses after the plan?
A. ₦40 billion
B. ₦45 billion
C. ₦50 billion
D. ₦55 billion
Question 4
A consumer has a budget of ₦1000 and is choo\sing between two goods, A and B. The price of good A is ₦200 and the price of good B is ₦300. If the consumer's income elasticity of demand for good A is 0.5, what is the value of the cross-price elasticity of demand for good B?
A. 0.2
B. 0.5
C. 1
D. 2
Question 5
A consumer has a budget constraint of 100 units of currency and faces a price of 5 units of currency per unit of good X and 10 units of currency per unit of good Y. If the consumer's indifference curve is \tangent to the budget line at point (10, 5), what is the marginal rate of substitution (MRS) between good X and good Y?
A. 0.5
B. 1
C. 2
D. 5
Question 6
A consumer's budget constraint is given by the equation 2x + 3y = 12. What is the opportunity \cost of consuming one more unit of good x?
A. The opportunity \cost is 3 units of good y.
B. The opportunity \cost is 2 units of good y.
C. The opportunity \cost is 1 unit of good y.
D. The opportunity \cost is 4 units of good y.
Question 7
A country's GDP is 100 billion units of currency. If the country's GNP is 120 billion units of currency, what is the country's net factor income from abroad?
A. 20 billion units of currency
B. 30 billion units of currency
C. 40 billion units of currency
D. 50 billion units of currency
Question 8
A country is experiencing a severe drought, leading to a significant decrease in agricultural production. What would be the likely effect on the overall level of economic activity in the short run?
A. Increase in economic activity due to increased government sp\ending on agriculture
B. Decrease in economic activity due to reduced agricultural production
C. No significant effect on economic activity
D. Increase in economic activity due to increased imports of food
Question 9
The government of a country imposes a tax on imports to raise revenue. This type of tax is known as a(n)
A. Direct Tax
B. Indirect Tax
C. Excise Duty
D. Value-Added Tax
Question 10
A consumer has a budget constraint of 100 units of currency and faces a price of 5 units of currency per unit of good X and 10 units of currency per unit of good Y. If the consumer's indifference curve is \tangent to the budget line at point (10, 5), what is the consumer's optimal consumption bundle?
A. (10, 5)
B. (20, 10)
C. (15, 3)
D. (5, 10)
Question 11
A firm's revenue function is given by R(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 10, find the value of x that maximizes the firm's revenue.
A. 5
B. 10
C. 15
D. 20
Question 12
Consider a country with a mixed economy, where the government plays a significant role in the economy through public enterprises. If the government decides to privatize some of these enterprises, what would be the likely effect on the overall level of economic activity in the short run?
A. Increase in economic activity due to increased competition and efficiency
B. Decrease in economic activity due to job losses and reduced government sp\ending
C. No significant effect on economic activity
D. Increase in economic activity due to increased government revenue
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 -2, what is the value of the cross-price elasticity of demand?
A. 4
B. -1
C. 2
D. 1
Question 14
A firm's \cost function is given by C = 100 + 2L + 3K. If the firm's revenue function is given by R = 200L + 300K, what is the firm's profit function?
A. P = 100 + 2L + 3K + 200L + 300K
B. P = 100 + 2L + 3K - 200L - 300K
C. P = 100 - 2L - 3K + 200L + 300K
D. P = 100 - 2L - 3K - 200L - 300K
Question 15
A firm's \cost function is given by C = 100 + 2L + 3K. If the firm's revenue function is given by R = 200L + 300K, what is the firm's profit function?
A. P = 100 + 2L + 3K + 200L + 300K
B. P = 100 + 2L + 3K - 200L - 300K
C. P = 100 - 2L - 3K + 200L + 300K
D. P = 100 - 2L - 3K - 200L - 300K

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