POST UTME RSU 2025 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 + 100Q. If the firm's revenue function is R(Q) = 3Q^2 - 20Q, calculate the firm's profit-maximizing output level.
A. \( Q = 10 \)
B. \( Q = 20 \)
C. \( Q = 30 \)
D. \( Q = 40 \)
Question 2
A country's central bank is considering a monetary policy intervention to stabilize the economy. The country's money supply is given by the following equation: M = kPY, where M is the money supply, k is a cons\tant, P is the price level, and Y is real GDP. If the central bank wants to increase the money supply by 10%, what is the required percentage change in real GDP?
A. 5%
B. 10%
C. 15%
D. 20%
Question 3
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 ₦10 trillion, and the values of C, I, G, X, and M are ₦4 trillion, ₦1 trillion, ₦2 trillion, ₦2 trillion, and ₦1 trillion respectively, calculate the country's trade balance.
A. ( ₦1 trillion )
B. ( ₦2 trillion )
C. ( ₦3 trillion )
D. ( ₦4 trillion )
Question 4
A country's GDP is ₦10 trillion, and its GNP is ₦12 trillion. What is the net factor income from abroad?
A. ₦2 trillion
B. ₦1 trillion
C. ₦1.5 trillion
D. ₦0.5 trillion
Question 5
A consumer's indifference curve is steeper than another consumer's indifference curve, which of the following is true?
A. The first consumer has a higher marginal utility of income
B. The second consumer has a higher marginal utility of income
C. The first consumer has a lower marginal utility of income
D. The second consumer has a lower marginal utility of income
Question 6
A farmer has 100 hectares of land and can produce 2 tons of wheat per hectare. If the price of wheat is ₦50 per ton, what is the total revenue?
A. ₦100,000
B. ₦200,000
C. ₦500,000
D. ₦1,000,000
Question 7
A country's balance of payments is in equilibrium when the current account is equal to the capital account. If the current account is ₦100 billion and the capital account is ₦50 billion, what is the net capital outflow?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 8
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 10% each, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 9
A firm operates in a monopoly market with a demand function given by \( P = 100 - 2x \), where ( x ) is the quantity demanded. If the firm's marginal \cost function is \( MC = 10 + 2x \), find the firm's optimal quantity produced.
A. 20
B. 30
C. 40
D. 50
Question 10
A consumer's indifference curve is downward sloping. What does this imply about the consumer's preferences?
A. The consumer prefers more of the good with lower quantity.
B. The consumer prefers more of the good with higher quantity.
C. The consumer is indifferent to the quantity of the good.
D. The consumer prefers less of the good with higher quantity.
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, calculate the firm's optimal input combination (L, K) u\sing the Hotelling's Lemma.
A. \( L = 100, K = 50 \)
B. \( L = 50, K = 100 \)
C. \( L = 200, K = 100 \)
D. \( L = 100, K = 200 \)
Question 12
The concept of returns to scale in production theory implies that as the input factors increase proportionally, the output will increase at a rate of:
A. cons\tant
B. increa\sing
C. decrea\sing
D. zero
Question 13
The diagram below shows the supply and demand curves for a commodity. If the price of the commodity increases, what will happen to the equilibrium quantity?
A. increase
B. decrease
C. remain the same
D. shift to the left
Question 14
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 10% each, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
A consumer has the following indifference curves: IC1 and IC2. If the price of good X is ₦10 and the price of good Y is ₦20, what is the optimal bundle of goods?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4

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