POST UTME RHEMA UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the value of the marginal \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 2
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the value of the net factor income from abroad?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 3
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000, and the price of good x is ₦5, what is the optimal quantity of good y?
A. 100
B. 120
C. 150
D. 180
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the value of the average \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 5
Consider a small open economy with a fixed exchange rate. Suppose the country's trade balance is in surplus, and the central bank decides to sell foreign exchange to the market. What will be the effect on the country's money supply?
A. The money supply will increase
B. The money supply will decrease
C. The money supply will remain unchanged
D. The money supply will increase, but at a slower rate
Question 6
Consider a perfectly competitive market with a downward-sloping demand curve. If the market price increases, what will happen to the quantity supplied?
A. Quantity supplied will increase
B. Quantity supplied will decrease
C. Quantity supplied will remain unchanged
D. Quantity supplied will increase, but at a slower rate
Question 7
A consumer's budget constraint is given by the equation \( 2x + 3y = 12 \). If the consumer's income is ₦12 and the prices of x and y are ₦2 and ₦3 respectively, find the consumer's optimal bundle of x and y.
A. (3, 2)
B. (2, 3)
C. (1, 4)
D. (4, 1)
Question 8
A country's GDP is given by the equation \( GDP = C + I + G + \( X - M \ \) ). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦600 billion, and imports are ₦400 billion, find the country's GDP.
A. ₦1.5 trillion
B. ₦1.8 trillion
C. ₦2.2 trillion
D. ₦2.5 trillion
Question 9
Consider a production function of the form Q = f(L,K) = 2L^0.5K^0.5. If the marginal product of labor (MPL) is 0.5K^0.5, and the marginal product of capital (MPK) is L^0.5/2, what is the value of the elasticity of substitution between labor and capital?
A. 0.5
B. 1
C. 1.5
D. 2
Question 10
A perfectly competitive firm's supply curve is upward-sloping because of the law of increa\sing
A. marginal opportunity \cost
B. marginal revenue
C. marginal \cost
D. marginal utility
Question 11
A firm's average total \cost curve is U-shaped because of the law of
A. diminishing returns
B. increa\sing opportunity \cost
C. law of supply
D. law of demand
Question 12
A consumer has a utility function U = 2Q1 + 3Q2. If the prices are Q1 = ₦10, Q2 = ₦20, and the consumer's income is ₦1000, find the consumer's optimal bundle.
A. Q1 = 100 units, Q2 = 50 units
B. Q1 = 50 units, Q2 = 75 units
C. Q1 = 0 units, Q2 = 100 units
D. Q1 = 75 units, Q2 = 25 units
Question 13
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal \cost is ₦20, find the profit-maximizing price and quantity.
A. ₦40, 60 units
B. ₦30, 70 units
C. ₦20, 80 units
D. ₦10, 90 units
Question 14
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its revenue?
A. Revenue will increase
B. Revenue will decrease
C. Revenue will remain unchanged
D. Revenue will increase, but at a slower rate
Question 15
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's labor and capital are ₦100 and ₦200 respectively, what is the optimal quantity of output?
A. 100
B. 150
C. 200
D. 250

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