POST UTME REDEEMERS UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function C = 100 + 2Q. Find the monopolist's profit-maximizing price and quantity.
A. ₦75
B. ₦100
C. ₦125
D. ₦150
Question 2
A firm's production function is given by Q = 2L^2, where L is labor. If the wage rate is ₦50 per hour, what is the marginal product of labor?
A. 4L
B. 2L
C. L
D. 1/L
Question 3
A consumer's budget constraint is given by 2X + 3Y = 12, where X and Y are the quantities of two goods. If the consumer's utility function is given by U(X, Y) = XY, what is the optimal bundle of goods?
A. (2, 4)
B. (4, 2)
C. (6, 1)
D. (1, 6)
Question 4
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the price of the good is $5, what is the profit-maximizing quantity?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 5
Suppose a country imports 100 units of a product at a price of ₦50 per unit. If the exchange rate is 1 USD = 200 NGN, find the value of the imports in USD.
A. 2 USD
B. 4 USD
C. 6 USD
D. 8 USD
Question 6
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 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 7
A firm's revenue function is given by R(Q) = 2Q^2 - 10Q, where Q is output. If the firm's \cost function is given by C(Q) = 5Q^2 + 20Q, what is the profit-maximizing output?
A. 5
B. 10
C. 15
D. 20
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm produces 50 units, what is the price?
A. 40
B. 45
C. 50
D. 55
Question 9
A monopolist faces a demand curve given by P = 100 - 2Q, where P is price and Q is quantity. If the firm's marginal \cost is cons\tant at ₦20, what is the firm's optimal quantity?
A. 20
B. 30
C. 40
D. 50
Question 10
A firm has a production function Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the firm hires 5 units of labor and 3 units of capital, find the output.
A. 15
B. 20
C. 25
D. 30
Question 11
Suppose the Central Bank of Nigeria (CBN) increases the reserve requirement for commercial banks from 10% to 15%. If the money multiplier is 10, what is the new money supply?
A. ₦1.5 billion
B. ₦1.0 billion
C. ₦1.25 billion
D. ₦1.75 billion
Question 12
A government wants to reduce the price of a commodity by 10% u\sing a subsidy. If the initial price is ₦100 and the subsidy is ₦10, what is the new price?
A. ₦90
B. ₦95
C. ₦100
D. ₦105
Question 13
A consumer's demand curve for a good is given by Q = 100 - 2P, where P is price. If the consumer's income is ₦1000 and the price of a complementary good is ₦200, what is the optimal quantity of the good?
A. 40
B. 50
C. 60
D. 70
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 wants to increase output by 10% while keeping labor cons\tant, what percentage increase in capital is required?
A. 5%
B. 10%
C. 20%
D. 25%
Question 15
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is ₦100 and the value of imports is ₦80, what is the balance of payments?
A. ₦20
B. ₦30
C. ₦40
D. ₦50

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