POST UTME RHEMA UNIVERSITY 2018 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, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
A perfectly competitive market is characterized by which of the following?
A. Many buyers and sellers
B. A \single buyer or seller
C. A \single product
D. A \single market
Question 3
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 is increased by 20%, what is the new quantity demanded?
A. 60
B. 80
C. 100
D. 120
Question 4
A monopolist faces a demand curve with the following equation: Q = 100 - 2P. The firm's marginal \cost curve is given by MC = 10 + 2Q. What is the profit-maximizing price and quantity?
A. P = 50, Q = 25
B. P = 75, Q = 12.5
C. P = 90, Q = 5
D. P = 100, Q = 0
Question 5
A country's inflation rate is 5% per annum. If the current price level is 100, what will be the price level after 2 years?
A. 105
B. 110
C. 115
D. 120
Question 6
The government of Nigeria has introduced a policy to increase agricultural production. Which of the following is a likely consequence of this policy?
A. An increase in the price of agricultural products.
B. A decrease in the price of agricultural products.
C. An increase in the supply of agricultural products.
D. A decrease in the supply of agricultural products.
Question 7
A firm has a production function Q = 2L^0.5K^0.5. If the price of the good is P = 10, and the firm's \cost function is C(L,K) = 2L + 3K, what is the firm's profit-maximizing level of output?
A. 20
B. 30
C. 40
D. 50
Question 8
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's output increases by 20% and labor increases by 10%, what is the percentage increase in capital?
A. 5%
B. 10%
C. 15%
D. 20%
Question 9
The demand for money is a function of
A. interest rates and income
B. inflation and income
C. interest rates and inflation
D. income and inflation
Question 10
A firm has a production function Q = 3L^0.5K^0.5. If the price of the good is P = 10, and the firm's \cost function is C(L,K) = 2L + 3K, what is the firm's profit-maximizing level of output?
A. 20
B. 30
C. 40
D. 50
Question 11
A country's economic growth can be measured u\sing which of the following indicators?
A. Gross Domestic Product (GDP)
B. Gross National Product (GNP)
C. Net Domestic Product (NDP)
D. Net National Product (NNP)
Question 12
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be used to produce other goods. This is an example of a trade-off between:
A. Present consumption and future consumption
B. Present consumption and investment
C. Investment and future consumption
D. Present consumption and leisure
Question 13
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 is increased by 20%, what is the new quantity demanded?
A. 60
B. 80
C. 100
D. 120
Question 14
A government wants to reduce poverty in a rural area. Which of the following policies is most likely to achieve this goal?
A. Increa\sing the minimum wage
B. Providing subsidies for fertilizers
C. Implementing a cash transfer program
D. Increa\sing the price of agricultural products
Question 15
A monopolist faces a demand curve given by P = 100 - 2Q. If the firm's marginal \cost is cons\tant at ₦10, what is the profit-maximizing quantity?
A. 20 units
B. 30 units
C. 40 units
D. 50 units

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