POST UTME RSU 2017 Economics | Objective

Are you preparing for POST UTME RSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1
Determine the price elasticity of demand for a product whose price elasticity of demand is 0.5 and the quantity demanded is 100 units when the price is $10. If the price increases by 20% and the quantity demanded decreases by 15%, what is the new quantity demanded?
A. 80 units
Correct B. 90 units
C. 100 units
D. 110 units

Correct Answer: B

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Question 2
A country's GDP is $100 billion, its GNP is $120 billion, and its net factor income from abroad is $10 billion. What is the country's national income?
A. $110 billion
B. $120 billion
Correct C. $130 billion
D. $140 billion

Correct Answer: C

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Question 3
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the firm's marginal revenue is $20 and its marginal \cost is $15, what is the optimal quantity to produce?
A. 20 units
B. 30 units
Correct C. 40 units
D. 50 units

Correct Answer: C

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Question 4
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)
Correct B. (3, 1)
C. (4, 0)
D. (0, 4)

Correct Answer: B

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Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are L = 4 and K = 9, respectively, what is the firm's output?
A. 8
B. 12
Correct C. 16
D. 20

Correct Answer: C

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Question 6
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
A. 1
B. 2
Correct C. 3
D. 4

Correct Answer: C

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Question 7
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 X?
A. 60
B. 70
C. 80
Correct D. 90

Correct Answer: D

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Question 8
A consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of units of good X and y is the number of units of good Y. If the consumer's budget constraint is 2x + 3y = 12, find the optimal values of x and y.
A. x = 2, y = 4
B. x = 3, y = 3
Correct C. x = 4, y = 2
D. x = 5, y = 1

Correct Answer: C

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Question 9
A firm's \cost function is given by C(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's revenue function is R(x) = 4x^2 + 5x + 1, find the value of x that minimizes \cost.
A. 1
B. 2
Correct C. 3
D. 4

Correct Answer: C

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Question 10
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
Correct D. 20

Correct Answer: D

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Question 11
A firm operating under perfect competition will experience a decrease in its average revenue curve if it increases its price. What is the correct explanation for this phenomenon?
Correct A. The firm's increase in price leads to a decrease in the quantity demanded, resulting in a decrease in total revenue.
B. The firm's increase in price leads to an increase in the quantity demanded, resulting in an increase in total revenue.
C. The firm's increase in price leads to a decrease in the quantity supplied, resulting in a decrease in total revenue.
D. The firm's increase in price leads to an increase in the quantity supplied, resulting in an increase in total revenue.

Correct Answer: A

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Question 12
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?
Correct A. GDP = C + I + G + \( X - M \)
B. GDP = C + I + G + M
C. GDP = C + I + G + X
D. GDP = C + I + G + \( M - X \)

Correct Answer: A

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Question 13
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?
Correct 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.

Correct Answer: A

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Question 14
A country's balance of payments accounts show a trade deficit of ₦100 billion. What is the correct explanation for this phenomenon?
Correct A. The country is importing more goods and services than it is exporting.
B. The country is exporting more goods and services than it is importing.
C. The country is experiencing a surplus in its current account.
D. The country is experiencing a deficit in its capital account.

Correct Answer: A

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Question 15
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.
Correct 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.

Correct Answer: C

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Question 16
The government of a country decides to implement a policy of price control to regulate the prices of essential commodities. Which of the following is a likely consequence of this policy?
A. Increased supply of essential commodities
B. Decreased demand for essential commodities
Correct C. Black market for essential commodities
D. Increased government revenue

Correct Answer: C

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Question 17
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its quantity demanded?
A. Increase in quantity demanded
Correct B. Decrease in quantity demanded
C. No change in quantity demanded
D. Increase in price

Correct Answer: B

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Question 18
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
Correct D. ₦260 billion

Correct Answer: D

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Question 19
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
Correct D. ₦70

Correct Answer: D

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Question 20
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%
Correct C. 30%
D. 40%

Correct Answer: C

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Question 21
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 quantity of output?
A. 60
B. 80
Correct C. 100
D. 120

Correct Answer: C

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Question 22
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 inelastic, what will happen to the equilibrium price and quantity?
Correct A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases

Correct Answer: A

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Question 23
A firm's total revenue (TR) is given by the equation TR = 2x^2 + 10x + 5, where x is the quantity of output. If the firm's marginal revenue (MR) is 4x + 5, what is the optimal quantity of output?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 24
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
Correct B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases

Correct Answer: B

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Question 25
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?
Correct A. ₦120
B. ₦100
C. ₦80
D. ₦60

Correct Answer: A

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