POST UTME RSU 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments account is in equilibrium when its
A. current account is in surplus
B. capital account is in surplus
C. trade balance is in equilibrium
D. foreign exchange reserves are zero
Question 2
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
C. Increased government debt and reduced economic growth
D. Improved living s\tandards and reduced poverty
Question 3
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?
A. 0.5
B. 1
C. 2
D. 4
Question 4
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
C. Increased government debt and reduced economic growth
D. Improved rural livelihoods and reduced poverty
Question 5
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
B. 2
C. 3
D. 4
Question 6
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
C. ₦130 billion
D. ₦140 billion
Question 7
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal \cost curve
C. average revenue curve
D. average \cost curve
Question 8
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
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to maximize its output, it should
A. increase both labor and capital
B. increase labor and decrease capital
C. decrease labor and increase capital
D. decrease both labor and capital
Question 10
The opportunity \cost of producing one more unit of a good is the
A. marginal benefit
B. marginal \cost
C. average \cost
D. average revenue
Question 11
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
B. ₦1500
C. ₦1800
D. ₦2000
Question 12
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
B. 2
C. 3
D. 4
Question 13
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
B. Increased inflation and reduced economic growth
C. Reduced unemployment and improved living s\tandards
D. Increased government revenue and reduced poverty
Question 14
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is ₦20 per unit. What is the monopolist's optimal price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
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
B. 20
C. 30
D. 40

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