POST UTME RHEMA UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is represented by the equation ( U(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y that maximizes utility.
A. (200, 100)
B. (150, 150)
C. (100, 200)
D. (250, 50)
Question 2
A firm is operating in a perfectly competitive market. The demand curve is given by \( Q = 100 - 2P \) and the supply curve is given by \( Q = 20 + 5P \). Find the equilibrium price and quantity.
A. P = ₦10, Q = 60
B. P = ₦20, Q = 40
C. P = ₦30, Q = 20
D. P = ₦40, Q = 0
Question 3
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. If the price of labor is $10 per unit and the price of capital is $20 per unit, what is the optimal combination of labor and capital that minimizes the \cost of production?
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 10, K = 10
D. L = 5, K = 5
Question 4
A monopolist faces a demand curve given by the equation \( Q = 100 - 2P \). If the firm produces 20 units, what is the price per unit?
A. $20
B. $30
C. $40
D. $50
Question 5
A government is considering a tax on a particular good. The tax will increase the price of the good by 10% and reduce the quantity demanded by 5%. What is the elasticity of demand for this good?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 6
A firm is producing a good u\sing a production function given by \( Q = 2L^2 + 3K \). The firm's \cost function is given by \( C = 10L + 20K \). Find the \cost-minimizing input bundle.
A. L = 2, K = 1
B. L = 1, K = 2
C. L = 3, K = 0
D. L = 0, K = 3
Question 7
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are $4 and $6 respectively, and the consumer's income is $100, what is the consumer's optimal level of x?
A. x = 10
B. x = 15
C. x = 20
D. x = 25
Question 8
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 value of exports is ₦500,000,000,000 and the value of imports is ₦600,000,000,000, what is the balance of payments?
A. ₦-100,000,000,000
B. ₦0
C. ₦100,000,000,000
D. ₦200,000,000,000
Question 9
A country's GDP is $100 billion. The government imposes a 10% tax on all goods and services. What is the new GDP?
A. $90 billion
B. $100 billion
C. $110 billion
D. $120 billion
Question 10
U\sing the concept of opportunity \cost, explain why a country may choose to import a good even if it can be produced domestically.
A. The opportunity \cost of producing the good domestically is lower than the opportunity \cost of importing it.
B. The opportunity \cost of importing the good is lower than the opportunity \cost of producing it domestically.
C. The opportunity \cost of producing the good domestically is higher than the opportunity \cost of importing it.
D. The opportunity \cost of importing the good is higher than the opportunity \cost of producing it domestically.
Question 11
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the firm's \cost function is C(L,K) = 2L + 3K, what is the firm's optimal level of labor and capital?
A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 9
D. L = 9, K = 16
Question 12
A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. What is the net factor income from abroad?
A. ₦100 billion
B. ₦50 billion
C. ₦0 billion
D. ₦-50 billion
Question 13
A government is considering a budget that allocates 30% of its revenue to education, 20% to healthcare, and 50% to defense. If the government's revenue is $100 million, what is the total amount allocated to education and healthcare?
A. $20 million
B. $30 million
C. $40 million
D. $50 million
Question 14
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 elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 15
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are $4 and $6 respectively, and the consumer's income is $100, what is the consumer's optimal bundle of x and y?
A. x = 10, y = 15
B. x = 15, y = 10
C. x = 20, y = 5
D. x = 5, y = 20

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