POST UTME RHEMA UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects the average revenue (AR) curve at a point where the firm is producing at its optimal output level, what is the implication for the firm's profit-maximizing output level?
A. The firm will produce at its minimum point on the ATC curve.
B. The firm will produce at its maximum point on the ATC curve.
C. The firm will produce at its optimal output level, where ATC = AR.
D. The firm will produce at its minimum point on the AR curve.
Question 2
A firm is a price-taker in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the 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 elasticity of demand is 0.5, what is the price at which the quantity demanded is 60?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 4
A firm's production function is given by Q = 2L^2 + 3K, where L is labor and K is capital. The firm's \cost function is given by C = 10L + 20K. Find the firm's profit-maximizing level of labor and capital.
A. L = 2 units, K = 3 units
B. L = 3 units, K = 2 units
C. L = 1 unit, K = 4 units
D. L = 4 units, K = 1 unit
Question 5
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the monopolist produces 20 units, what is the producer surplus?
A. ₦500
B. ₦1000
C. ₦2000
D. ₦3000
Question 6
A firm is producing a good with a production function Q = 2L + 3K. If the firm's \cost function is C(L,K) = 10L + 20K, and the firm's revenue function is R(L,K) = 20L + 30K, what is the profit-maximizing level of L and K?
A. (5, 5)
B. (10, 10)
C. (15, 15)
D. (20, 20)
Question 7
A consumer has the following utility function: U(x, y) = 2x + 3y. The prices of x and y are ₦5 and ₦3 respectively. The consumer's budget is ₦20. Find the consumer's optimal consumption bundle.
A. x = 2 units, y = 4 units
B. x = 4 units, y = 2 units
C. x = 3 units, y = 3 units
D. x = 1 unit, y = 5 units
Question 8
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue is MR = 50 - 2Q, find the firm's equilibrium price and quantity.
A. P = 40, Q = 30
B. P = 45, Q = 25
C. P = 50, Q = 20
D. P = 55, Q = 15
Question 9
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost (MC) is given by MC = 10 + 2Q. What is the monopolist's profit-maximizing output level?
A. Q = 20
B. Q = 25
C. Q = 30
D. Q = 35
Question 10
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 11
A country's balance of payments is given by the following equations: BOP = X - M, X = 100 + 2Y, and M = 50 + Y. If the country's income is ₦1000, what is the balance of payments?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 12
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the monopolist produces 20 units, what is the consumer surplus?
A. ₦500
B. ₦1000
C. ₦2000
D. ₦3000
Question 13
A country's balance of payments is given by the following equation: BOP = X - M - \( F - I \). If the country's exports (X) are ₦500 billion, imports (M) are ₦300 billion, foreign direct investment (F) is ₦200 billion, and domestic investment (I) is ₦100 billion, calculate the country's balance of payments.
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 14
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is the GDP, C is the consumption, I is the investment, G is the government sp\ending, X is the exports, and M is the imports. If the country's GDP is ₦100 billion, consumption is ₦30 billion, investment is ₦20 billion, government sp\ending is ₦15 billion, exports are ₦25 billion, and imports are ₦10 billion, what is the value of the trade balance?
A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion
Question 15
Consider a country with a GDP of ₦10 trillion and a GNP of ₦11 trillion. If the country's population is 200 million, calculate the per capita GDP and GNP.
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000

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