Practice post utme rsu economics 2018 Past Questions

Question 1

An economy is said to be in a state of stagflation when it experiences both high inflation and high unemployment. Which of the following is a characteristic of stagflation?

A. A decrease in the money supply

B. A decrease in aggregate demand

C. A decrease in the price level

Correct D. An increase in the money supply

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A firm's revenue function is given by R(x) = 2x^2 + 5x + 1. If the firm's marginal revenue is 10, what is the value of x?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A diagram of a firm's production possibilities curve is shown below. If the firm is currently producing at point A, what is the opportunity \cost of producing one more unit of good X?

A. 1 unit of good Y

Correct B. 2 units of good Y

C. 3 units of good Y

D. 4 units of good Y

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A firm's total \cost function is given by TC(x) = 3x^2 + 2x + 1. If the firm produces 5 units of output, what is the total \cost?

A. 41

B. 42

Correct C. 43

D. 44

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A diagram of a firm's demand curve is shown below. If the firm is currently producing at point A, what is the price elasticity of demand?

A. elastic

Correct B. inelastic

C. unit elastic

D. perfectly inelastic

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

The government of Nigeria has introduced a new policy to increase agricultural production. The policy involves providing subsidies to farmers and investing in irrigation systems. However, the policy has been criticized for being too expensive and not addres\sing the root causes of low agricultural productivity. Which of the following is a potential consequence of this policy?

A. Increased agricultural production and improved food security

B. Reduced agricultural production and increased food prices

Correct C. Increased government debt and reduced economic growth

D. Improved rural livelihoods and reduced poverty

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, what is the total \cost of production?

A. ₦20,000

Correct B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

The Nigerian government has introduced a new monetary policy to reduce inflation. The policy involves increa\sing the reserve requirement for commercial banks and reducing the money supply. However, the policy has been criticized for being too restrictive and reducing economic growth. Which of the following is a potential consequence of this policy?

A. Reduced inflation and improved economic growth

Correct B. Increased inflation and reduced economic growth

C. Reduced unemployment and improved living s\tandards

D. Increased government revenue and reduced poverty

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, what is the marginal product of labor?

Correct A. 0.5

B. 1

C. 2

D. 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

The Nigerian government has introduced a new policy to increase industrial production. The policy involves providing subsidies to industries and investing in infrastructure. However, the policy has been criticized for being too expensive and not addres\sing the root causes of low industrial productivity. Which of the following is a potential consequence of this policy?

A. Increased industrial production and improved economic growth

B. Reduced industrial production and increased unemployment

Correct C. Increased government debt and reduced economic growth

D. Improved living s\tandards and reduced poverty

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y.

A. (20, 20)

B. (40, 10)

Correct C. (30, 15)

D. (25, 25)

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's output is 100 units and the wage rate is ₦10 per unit of labor, find the optimal level of capital.

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

A country's GDP is ₦100 billion. If the government decides to increase the price of a commodity by 20%, find the new GDP.

A. ₦120 billion

B. ₦110 billion

Correct C. ₦130 billion

D. ₦140 billion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A consumer's budget constraint is given by \( 2x + 3y = 12 \). If the consumer's indifference curve is represented by the equation ( u(x,y) = 2x + y ), find the optimal bundle of x and y.

A. (4, 4)

Correct B. (6, 2)

C. (8, 0)

D. (0, 8)

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's output is 100 units and the wage rate is ₦10 per unit of labor, find the optimal level of labor.

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.

Correct A. (200, 100)

B. (150, 150)

C. (100, 200)

D. (50, 250)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

The government of Nigeria plans to increase the production of rice by 20% in the next fiscal year. If the current production level is 5 million metric tons, what will be the new production level?

A. 5.5 million metric tons

Correct B. 6 million metric tons

C. 6.5 million metric tons

D. 7 million metric tons

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A firm's total revenue is given by the equation \( TR = 100x - 2x^2 \), where x is the number of units sold. If the firm sells 20 units, what is its total revenue?

A. ₦1200

Correct B. ₦1500

C. ₦1800

D. ₦2000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A consumer's demand for a product is given by the equation \( Q = 100 - 2P \), where Q is the quantity demanded and P is the price. If the price is ₦20, what is the quantity demanded?

A. 40 units

B. 50 units

Correct C. 60 units

D. 70 units

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A firm's marginal \cost is given by the equation \( MC = 2x + 5 \), where x is the number of units produced. If the firm produces 10 units, what is its marginal \cost?

A. ₦25

B. ₦30

Correct C. ₦35

D. ₦40

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the point where the marginal product of capital (MPK) is 1?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

A country's GDP is ₦1,200 billion, and its GNP is ₦1,250 billion. What is the net factor income from abroad (NFIA) in billions of naira?

A. ₦50 billion

B. ₦75 billion

C. ₦100 billion

Correct D. ₦125 billion

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A firm's demand function is given by Q = 100 - 2P + 3X, where Q is the quantity demanded, P is the price, and X is the income. If the price is ₦20 and the income is ₦500, what is the quantity demanded?

A. 80

B. 90

Correct C. 100

D. 110

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A central bank increases the money supply by ₦100 billion. If the velocity of money is 5, what is the increase in the nominal GDP?

A. ₦500 billion

B. ₦600 billion

C. ₦700 billion

Correct D. ₦800 billion

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A firm's \cost function is given by C = 2L + 3K. If the firm's current labor and capital inputs are L = 10 and K = 5, respectively, what is the total \cost?

A. ₦50

B. ₦60

C. ₦70

Correct D. ₦80

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME RSU 2018 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: