POST UTME RHEMA UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, what is the equilibrium price and quantity?
A. P = 25, Q = 50
B. P = 50, Q = 25
C. P = 75, Q = 100
D. P = 100, Q = 75
Question 2
A firm's demand for labor is given by the following equation: L = 100 - 2P, where L is labor and P is price. If the price increases by 10%, how much will labor decrease?
A. \( \frac{dL}{dP} = -2 \)
B. \( \frac{dL}{dP} = -2 \times 10% \)
C. \( \frac{dL}{dP} = -2 \times 10% \times 100 \)
D. \( \frac{dL}{dP} = -2 \times 10% \times 100 \times 100 \)
Question 3
A country's balance of payments is given by the following equation: BOP = X - M, where X is exports and M is imports. If the country's exports increase by 15% and imports decrease by 10%, what is the new balance of payments?
A. \( \text{New BOP} = 0.15X - 0.10M \)
B. \( \text{New BOP} = 0.15X + 0.10M \)
C. \( \text{New BOP} = 0.15X - 0.10M \times 100 \)
D. \( \text{New BOP} = 0.15X + 0.10M \times 100 \)
Question 4
A country's GDP grows at a rate of 5% per annum. If the initial GDP is $100 billion, what will be the GDP after 5 years?
A. $162.89 billion
B. $165.12 billion
C. $167.35 billion
D. $169.58 billion
Question 5
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. P = 50, Q = 25
B. P = 75, Q = 12
C. P = 25, Q = 50
D. P = 12, Q = 75
Question 6
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 10% while keeping labor cons\tant at 100 units, how much should it increase capital?
A. \( \frac{dK}{dQ} = \frac{0.5K^{-0.5}}{0.5L^{-0.5}} \)
B. \( \frac{dK}{dQ} = \frac{0.5K^{-0.5}}{0.5L^{-0.5}} \times 10% \)
C. \( \frac{dK}{dQ} = \frac{0.5K^{-0.5}}{0.5L^{-0.5}} \times 10% \times 100 \)
D. \( \frac{dK}{dQ} = \frac{0.5K^{-0.5}}{0.5L^{-0.5}} \times 10% \times 100 \times 100 \)
Question 7
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, what is the price elasticity of demand at a price of $20?
A. 0.5
B. 1
C. 2
D. 5
Question 8
A country's balance of payments account shows a trade deficit of $100 million. What does this mean for the country's exchange rate?
A. The exchange rate will appreciate
B. The exchange rate will depreciate
C. The exchange rate will remain unchanged
D. The exchange rate will fluctuate
Question 9
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's current labor and capital inputs are 4 and 9 units respectively, what is the marginal product of labor?
A. 1/2
B. 1/4
C. 1/8
D. 1/16
Question 10
A government's budget is given by the equation B = T + I, where B is the budget, T is taxation, and I is interest on debt. If the government's budget is $100 billion, taxation is $50 billion, and interest on debt is $20 billion, what is the government's fiscal policy?
A. Expansionary
B. Contractionary
C. Neutral
D. Uncertain
Question 11
A firm's supply curve is given by the equation Qs = 2P + 10. If the price is ₦50, what is the quantity supplied?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 12
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 50, what is the optimal bundle of goods that maximizes utility?
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 13
A consumer's indifference curve is given by U = 2X + 3Y, where U is utility, X is the quantity of good X, and Y is the quantity of good Y. If the consumer's current utility level is 10, what is the marginal rate of substitution (MRS) between goods X and Y?
A. 1
B. 2
C. 3
D. 4
Question 14
A country's GDP is $100 billion. The government sp\ends $20 billion on defense and $15 billion on education. Find the country's government exp\enditure.
A. $35 billion
B. $40 billion
C. $45 billion
D. $50 billion
Question 15
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $30 billion, exports are $40 billion, and imports are $20 billion, what is the value of net exports?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion

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