POST UTME RHEMA UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's GDP increases by 10% due to a 5% increase in consumption, a 10% increase in investment, and a 15% increase in government sp\ending, what is the percentage change in net exports?
A. -5%
B. -10%
C. -15%
D. -20%
Question 2
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is the country's net foreign income?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 3
A firm's demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what is the optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 4
A firm's revenue function is given by R(x) = 20x - 0.5x^2. If the firm's \cost function is C(x) = 2x^2 + 5x + 10, what is the profit-maximizing level of output?
A. 10
B. 20
C. 30
D. 40
Question 5
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds a certain threshold. What is the name of this threshold?
A. The Marshall-Lerner condition
B. The J-curve effect
C. The Balance of Payments constraint
D. The Elasticity of Demand threshold
Question 6
A firm's total revenue is given by the equation TR = 100q - 2q^2, where q is the quantity sold. If the firm's marginal revenue is 80 when q = 10, what is the value of the firm's total revenue?
A. 1000
B. 1200
C. 1500
D. 1800
Question 7
A monopolistically competitive firm faces a demand curve given by Qd = 100 - 2P. If the firm produces at a level where MR = MC, what is the price elasticity of demand?
A. -2
B. -1
C. 1
D. 2
Question 8
A firm's average total \cost (ATC) curve is U-shaped. If the firm's short-run ATC curve is initially downward sloping, what can be inferred about the firm's production techno\logy?
A. The firm's production techno\logy exhibits increa\sing returns to scale.
B. The firm's production techno\logy exhibits decrea\sing returns to scale.
C. The firm's production techno\logy exhibits cons\tant returns to scale.
D. The firm's production techno\logy exhibits diminishing returns to scale.
Question 9
A country's GDP is ₦1,000 billion. The country's imports are ₦200 billion and its exports are ₦300 billion. What is the country's balance of trade?
A. ₦100 billion surplus
B. ₦100 billion deficit
C. ₦200 billion surplus
D. ₦200 billion deficit
Question 10
Consider a market with a demand function Qd = 100 - 2p and a supply function Qs = 2p - 10. If the market is initially in equilibrium, and then a shift in supply occurs, cau\sing the supply function to become Qs = p - 5, what will be the new equilibrium price and quantity?
A. p = ₦60, Q = 50 units
B. p = ₦70, Q = 60 units
C. p = ₦80, Q = 70 units
D. p = ₦90, Q = 80 units
Question 11
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are wL = ₦100 and rK = ₦150, and the firm's current output price is p = ₦200, what is the firm's current profit-maximizing level of output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 12
A firm's production function is given by Q = 10L^0.5K^0.5. If the firm's output increases by 20% due to a 10% increase in labor and a 15% increase in capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 1.5
D. 2
Question 13
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 20%, what percentage increase in labor and capital is required?
A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
C. 30% increase in labor and 30% increase in capital
D. 40% increase in labor and 40% increase in capital
Question 14
A farmer produces wheat and maize. The production functions for wheat and maize are given by W(x, y) = 2x^0.5y^0.5 and M(x, y) = 3x^0.5y^0.5 respectively. If the farmer has 100 units of labor and 50 units of capital, what is the maximum output of wheat?
A. 50
B. 60
C. 70
D. 80
Question 15
A firm's revenue function is given by R = 2Q^2 - 10Q + 20, where R is the revenue and Q is the quantity sold. If the firm sells 20 units, what is its revenue?
A. ₦200
B. ₦300
C. ₦400
D. ₦500

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