POST UTME REDEEMERS UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a utility function U(x, y) = 2x + 3y, where x is the quantity of good X and y is the quantity of good Y. If the consumer's income is ₦1000 and the prices of good X and good Y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. x = 100, y = 50
B. x = 50, y = 100
C. x = 200, y = 0
D. x = 0, y = 200
Question 2
A country's GDP is ₦100 billion and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 3
The concept of elasticity of demand is most relevant in the context of a perfectly competitive market, where a small change in price leads to a large change in quantity demanded. Which of the following is a correct statement about the elasticity of demand?
A. Elasticity of demand is a measure of the responsiveness of quantity demanded to changes in price.
B. Elasticity of demand is a measure of the responsiveness of quantity supplied to changes in price.
C. Elasticity of demand is a measure of the responsiveness of quantity demanded to changes in income.
D. Elasticity of demand is a measure of the responsiveness of quantity supplied to changes in income.
Question 4
A country's GDP is ₦1,000,000,000,000, and its GNP is ₦1,100,000,000,000. What is the net factor income from abroad?
A. ₦100,000,000,000
B. ₦200,000,000,000
C. ₦300,000,000,000
D. ₦400,000,000,000
Question 5
The following diagram shows the production possibility frontier (PPF) for a country. What is the opportunity \cost of producing 150 units of good Y?
Question 6
A firm has a total revenue function of \( TR = 100x - 2x^2 \) and a total \cost function of \( TC = 50x + 10x^2 \). Find the profit-maximizing level of output.
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 7
The following diagram shows the supply and demand curves for a particular good. What is the equilibrium price and quantity of the good?
A. Price = ₦150, Quantity = 50 units
B. Price = ₦200, Quantity = 200 units
C. Price = ₦250, Quantity = 250 units
D. Price = ₦300, Quantity = 300 units
Question 8
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. The \cost function is given by C = 10L + 20K. Find the marginal product of labor and the marginal product of capital.
A. MP_L = 2, MP_K = 3
B. MP_L = 3, MP_K = 2
C. MP_L = 4, MP_K = 1
D. MP_L = 1, MP_K = 4
Question 9
A firm's demand curve is given by Qd = 100 - 2P, and the supply curve is given by Qs = 2P - 10. Find the equilibrium price and quantity.
A. P = 20, Q = 30
B. P = 15, Q = 25
C. P = 10, Q = 20
D. P = 5, Q = 15
Question 10
A monopoly firm's demand curve is given by Qd = 100 - 2P, and its marginal revenue curve is given by MR = 200 - 4P. Find the firm's profit-maximizing price and quantity.
A. P = 20, Q = 30
B. P = 15, Q = 25
C. P = 10, Q = 20
D. P = 5, Q = 15
Question 11
A country's balance of payments is given by BOP = X - M, where BOP is the balance of payments, X is the exports, and M is the imports. Find the equilibrium value of the balance of payments.
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 12
A country's national income is given by N = C + I + G + \( X - M \), where N is national income, C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦600 billion, and imports are ₦400 billion, what is the national income?
A. ₦1.5 trillion
B. ₦1.6 trillion
C. ₦1.7 trillion
D. ₦1.8 trillion
Question 13
The following table shows the data for the industrial sector in Nigeria for the year 2018. What is the value of the sector's contribution to the country's GDP?
A. ₦2.0 trillion
B. ₦2.5 trillion
C. ₦3.0 trillion
D. ₦3.5 trillion
Question 14
Suppose the demand for a product is given by Qd = 100 - 2P and the supply is given by Qs = 2P - 10. Find the equilibrium price and quantity u\sing the supply and demand curves.
A. P = 15, Q = 25
B. P = 20, Q = 30
C. P = 25, Q = 35
D. P = 30, Q = 40
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 100 to 120 units and capital from 100 to 120 units, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%

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