POST UTME RSU 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's government imposes a tax on a particular good, cau\sing the supply curve to shift to the left. If the demand curve is elastic, what will happen to the equilibrium price and quantity?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases
Question 2
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 10 units of output, what is its total \cost?
A. ₦55
B. ₦60
C. ₦65
D. ₦70
Question 3
A firm's marginal revenue (MR) and marginal \cost (MC) curves intersect at point E, where MR = 120 and MC = 100. If the firm's price elasticity of demand is 2, what is the optimal price?
A. ₦120
B. ₦100
C. ₦80
D. ₦60
Question 4
A country's GDP is calculated as the sum of its consumption, investment, government sp\ending, and net exports. If the country's consumption is ₦100 billion, investment is ₦50 billion, government sp\ending is ₦75 billion, and net exports are ₦20 billion, what is the country's GDP?
A. ₦245 billion
B. ₦250 billion
C. ₦255 billion
D. ₦260 billion
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. What is the correct explanation for the firm's decision to increase its labor input?
A. The firm is increa\sing its labor input to increase its output.
B. The firm is increa\sing its labor input to decrease its \costs.
C. The firm is increa\sing its labor input to increase its marginal product of labor.
D. The firm is increa\sing its labor input to decrease its marginal product of labor.
Question 6
A government is considering a tax on a particular good. The supply curve of the good is given by Q = 100 + 2P and the demand curve is given by Q = 200 - 3P. If the tax is ₦10 per unit, what will be the new equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
A consumer's utility function is given by U = 2X + 3Y. If the consumer's budget constraint is given by 2X + 3Y = ₦100, what is the consumer's optimal bundle?
A. (10, 10)
B. (20, 20)
C. (30, 30)
D. (40, 40)
Question 8
A firm's production function is given by Q = 2L^2 + 5L. If the firm's wage rate is ₦50 per unit of labor, what is the firm's marginal product of labor?
A. 10
B. 20
C. 30
D. 40
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 6 units, and its capital input remains cons\tant at 9 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
A consumer has an income of $100 and faces a budget constraint given by P1x + P2y = 100. If the prices of the two goods are P1 = $20 and P2 = $30, and the consumer's indifference curve is given by U = 2x + 3y, what is the consumer's optimal bundle?
A. (2, 2)
B. (3, 1)
C. (4, 0)
D. (0, 4)
Question 11
A monopolist faces a downward-sloping demand curve. What is the correct explanation for the firm's decision to produce at a point where the marginal revenue equals the marginal \cost?
A. The firm is maximizing its profits by producing at the point where the marginal revenue equals the marginal \cost.
B. The firm is minimizing its \costs by producing at the point where the marginal revenue equals the marginal \cost.
C. The firm is producing at the point where the demand curve intersects the supply curve.
D. The firm is producing at the point where the marginal revenue equals the average revenue.
Question 12
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 10L^0.5K^0.5. If the price of labor is ₦100 and the price of capital is ₦200, what is the \cost-minimizing ratio of labor to capital?
A. 1:2
B. 1:3
C. 2:1
D. 3:2
Question 13
A country's GDP is calculated as the sum of its consumption, investment, government sp\ending, and net exports. What is the correct formula for this calculation?
A. GDP = C + I + G + \( X - M \)
B. GDP = C + I + G + M
C. GDP = C + I + G + X
D. GDP = C + I + G + \( M - X \)
Question 14
Suppose the demand function for a product is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10. If the market is in equilibrium, what is the price of the product?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 15
A country's balance of payments is given by the equation BOP = X - M + \( F - I \), where X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's balance of payments is $10 billion, exports are $20 billion, imports are $15 billion, foreign investment is $5 billion, and domestic investment is $10 billion, what is the value of F?
A. 5
B. 10
C. 15
D. 20

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