POST UTME REDEEMERS UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's marginal revenue (MR) is given by MR = 100 - 2q. The firm's marginal \cost (MC) is given by MC = 10 + 2q. If the firm produces 20 units, what is the profit?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 2
A firm is producing a good with a total revenue function of TR = 100x - 2x^2, where x is the number of units produced. If the firm's marginal revenue is 50, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 5
Question 3
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. ₦1,800
B. ₦2,000
C. ₦2,200
D. ₦2,400
Question 4
A firm's \cost function is given by C = 2L + 3K. If the firm hires 10 units of labor and 20 units of capital, what is the total \cost?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 5
A country's balance of payments is given by the following equations: BOP = X - M, where X is the value of exports and M is the value of imports. If the country's trade deficit is ₦100 billion and the value of exports is ₦200 billion, determine the value of imports.
A. ₦300 billion
B. ₦400 billion
C. ₦500 billion
D. ₦600 billion
Question 6
A firm is producing a good with a production function of Q = 2L^0.5K^0.5, where L and K are the quantities of labor and capital respectively. If the firm's output is 100 units and the price of labor is ₦10 per unit, what is the optimal quantity of capital?
A. 10
B. 20
C. 50
D. 100
Question 7
A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. What is its national income?
A. ₦130 billion
B. ₦140 billion
C. ₦150 billion
D. ₦160 billion
Question 8
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 9
A firm is operating in a perfectly competitive market with a demand curve of Q = 100 - 2P and a supply curve of Q = 50 + 3P. What is the equilibrium price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 10
A firm's total \cost (TC) is given by the equation TC = 100 + 2q + 0.5q^2, where q is the quantity produced. If the firm produces 20 units, what is the total \cost?
A. ₦1200
B. ₦1800
C. ₦2200
D. ₦2800
Question 11
Determine the returns to scale for a firm with a production function Q = 2L^2K, where Q is output, L is labor, and K is capital.
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale
Question 12
The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price is ₦30, what is the quantity supplied?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 13
The following diagram shows the demand and supply curves for a firm. What is the equilibrium price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 14
A firm's demand curve is given by Q = 100 - 2P. The firm's supply curve is given by Q = 20 + 2P. What is the equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 15
The government of Nigeria has implemented a policy to increase the production of rice through the use of irrigation. However, this policy has led to a decrease in the production of other crops. What is the opportunity \cost of this policy?
A. The decrease in the production of other crops
B. The increase in the production of rice
C. The opportunity \cost is the value of the next best alternative
D. The opportunity \cost is the value of the next best alternative that is given up

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