POST UTME REDEEMERS UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^2 + 3K, where Q is output, L is labor, and K is capital. If the firm's current input levels are L = 5 and K = 10, what is the marginal product of labor?
A. 10
B. 20
C. 30
D. 40
Question 2
A firm's total revenue is given by the equation TR = 100q - 2q^2, where q is the quantity sold. If the firm's marginal revenue is 120 when q = 10, what is the value of the firm's total revenue when q = 15?
A. ₦2250
B. ₦2750
C. ₦3250
D. ₦3750
Question 3
A monopolist faces a market demand curve given by Qd = 100 - 2P and a marginal revenue function MR = 50 - 2Q. What is the profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 4
A country's balance of payments (BOP) is in equilibrium when the current account (CA) is equal to the capital account (KA). If the CA is ₦100 billion and the KA is ₦50 billion, what is the value of the BOP?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 5
A country is experiencing a trade deficit due to an increase in imports. What is the likely effect of this trade deficit on the country's exchange rate?
A. The exchange rate will appreciate
B. The exchange rate will depreciate
C. The exchange rate will remain the same
D. The effect on the exchange rate is uncertain
Question 6
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers by 20%. What is the likely effect of this policy on the overall \cost of production for farmers?
A. The overall \cost of production will decrease
B. The overall \cost of production will increase
C. The overall \cost of production will remain the same
D. The effect on the overall \cost of production is uncertain
Question 7
A government imposes a tax of $10 per unit on a good that is currently priced at $20 per unit. What is the new price of the good after the tax is imposed?
A. $15
B. $20
C. $25
D. $30
Question 8
A country's balance of payments accounts show a trade deficit of $100 million and a capital account surplus of $50 million. What is the overall balance of payments position?
A. $50 million surplus
B. $100 million deficit
C. $150 million surplus
D. $200 million deficit
Question 9
A firm's demand function is given by the equation Q = 100 - 2P. If the firm's supply function is Q = 2P - 10, what is the equilibrium price?
A. $40
B. $50
C. $60
D. $70
Question 10
A firm's demand function is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is ₦20, what is the value of the firm's quantity demanded?
A. 40
B. 50
C. 60
D. 70
Question 11
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are ₦100 billion and its imports are ₦120 billion, what is the value of the country's balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 12
A monopolistically competitive firm is producing a good with a demand curve that is downward sloping. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain the same
D. The effect on total revenue is uncertain
Question 13
A country's GDP is $100 billion, and its GNP is $120 billion. What is the value of net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 14
A consumer's indifference curve is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10, respectively, what is the consumer's optimal bundle of x and y?
A. x = 20, y = 10
B. x = 15, y = 5
C. x = 10, y = 20
D. x = 5, y = 15
Question 15
A firm is producing a good with a cons\tant marginal \cost (MC) of ₦100 and a cons\tant marginal revenue (MR) of ₦150. If the firm is currently producing 100 units, what is the optimal quantity to produce?
A. 50 units
B. 100 units
C. 150 units
D. 200 units

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: