POST UTME REDEEMERS UNIVERSITY 2019 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm has two production processes: A and B. Process A requires 5 units of labor and 3 units of capital to produce 10 units of output, while process B requires 3 units of labor and 5 units of capital to produce 15 units of output. If the firm has 20 units of labor and 15 units of capital available, what is the optimal production process?
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is $10 per unit and the price of capital is $20 per unit, and if the firm wants to maximize its profits, what is the optimal combination of labor and capital?
Question 3
A government imposes a tax on imported goods to raise revenue and protect domestic industries. This tax is an example of a(n)
Question 4
A firm is producing a good with a total revenue of ₦100,000 and a total \cost of ₦80,000. If the firm's average revenue is ₦50, and the average \cost is ₦40, what is the firm's profit?
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, and the wage rate is ₦10 per hour, what is the minimum \cost of labor?
Question 6
The concept of opportunity \cost is most closely related to which of the following economic principles?
Question 7
A firm's demand for labor (L) is given by the equation L = 100 - 2P, where P is the price of the good. If the price of the good is $5, what is the firm's demand for labor?
Question 8
The government of Nigeria has implemented a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy requires farmers to pay a 10% tax on their annual sales. If a farmer sells 1000 bags of rice at ₦5000 each, what is the total tax payable?
Question 9
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal revenue curve is MR = 200 - 2Q. What is the profit-maximizing quantity?
Question 10
A firm's total revenue (TR) is given by the equation TR = 100P - 0.5P^2, where P is the price of the good. If the price of the good is $10, what is the firm's total revenue?
Question 11
A country's balance of payments account can be in equilibrium even if its current account is in deficit, if its capital account is in surplus. What is the name of this phenomenon?
Question 12
A firm is producing a good with a production function given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the firm's current output?
Question 13
A consumer is faced with the following budget constraint: 2x + 3y = 100. If the consumer's indifference curve is given by u = 2x + 3y, and the consumer is currently at the point (20, 15), what is the consumer's optimal bundle?
Question 14
A firm is considering investing in a new project that has a net present value (NPV) of ₦500,000. If the firm's \cost of capital is 10%, what is the internal rate of return (IRR) of the project?
Question 15
A consumer's indifference curve is given by the equation U = 2x + 3y. If the consumer's budget constraint is given by the equation 2x + 3y = 12, and if the consumer wants to maximize his utility, what is the optimal combination of x and y?
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