POST UTME REDEEMERS UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The money supply in an economy is determined by the central bank through the use of monetary policy tools. What is the primary objective of monetary policy?
Question 2
The concept of utility in economics refers to the satisfaction or pleasure derived from consuming a product. What is the law of diminishing marginal utility?
Question 3
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP increases by 15% and the consumption increases by 10%, calculate the percentage change in the investment.
Question 4
The demand for a product is said to be elastic if a small change in price leads to a large change in quantity demanded. What is the price elasticity of demand for a product with an elasticity of 2?
Question 5
The government of a country is considering a policy to increase the production of a particular crop. The crop is currently produced by 100 farmers, each producing 10 units of output. If the government provides a subsidy of ₦5 per unit, how many more units of output will be produced?
Question 6
A firm's demand for a raw material is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price of the raw material. If the price of the raw material increases by 20%, calculate the percentage change in the quantity demanded.
Question 7
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's current capital stock is 16 units and labor is 4 units, what is the marginal product of labor?
Question 8
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5H^0.5. If the firm's current input prices are w_L = ₦100 and w_H = ₦120, and the firm's current output price is p = ₦200, calculate the firm's optimal input mix (L, H) u\sing the Hotelling's Lemma.
Question 9
In the context of agricultural development in Nigeria, which of the following is a major challenge facing the sector?
Question 10
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be allocated to other goods. This is an example of a trade-off between two goods. What is the opportunity \cost of producing more of one good?
Question 11
A firm's production function is given by Q = 3L^\( 2/3 \)K^\( 1/3 \). If the price of the good is P = 15 and the wage rate is W = 3, calculate the optimal level of labor (L) and the optimal level of capital (K).
Question 12
A firm's demand curve is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's current quantity demanded?
Question 13
A country's GDP is calculated as the sum of all final goods and services produced within its borders. If a country's GDP is $100 billion and its GNP is $120 billion, what is the value of net factor income from abroad?
Question 14
A country's balance of payments account is in equilibrium when the current account is equal to the capital account. If the current account is -$100 million and the capital account is $50 million, what is the net capital outflow?
Question 15
A country's balance of payments is in equilibrium when its current account is equal to its capital account. If a country's current account is $50 billion and its capital account is $30 billion, what is the value of net factor income from abroad?
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