Practice post utme rsu economics 2019 Past Questions

Question 1

Determine the equilibrium price and quantity of a commodity in a market where the demand function is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10, where P is the price in naira.

A. ₦50, 50 units

B. ₦75, 25 units

Correct C. ₦100, 0 units

D. ₦125, 50 units

Correct Answer: C

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Question 2

A consumer's utility function is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 30, determine the optimal quantities of x and y that maximize the consumer's utility.

Correct A. x = 5, y = 5

B. x = 10, y = 0

C. x = 0, y = 10

D. x = 5, y = 10

Correct Answer: A

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Question 3

Agricultural production in Nigeria is characterized by a high degree of seasonality. U\sing the concept of seasonal adjustment, explain how the seasonally adjusted agricultural production index can be used to analyze the tr\end in agricultural production.

Correct A. Seasonal adjustment involves the removal of seasonal fluctuations to reveal the underlying tr\end in agricultural production.

B. Seasonal adjustment involves the addition of seasonal fluctuations to reveal the underlying tr\end in agricultural production.

C. Seasonal adjustment involves the multiplication of seasonal fluctuations to reveal the underlying tr\end in agricultural production.

D. Seasonal adjustment involves the division of seasonal fluctuations to reveal the underlying tr\end in agricultural production.

Correct Answer: A

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Question 4

U\sing the concept of opportunity \cost, explain how the opportunity \cost of a project can be determined and used to evaluate its feasibility.

A. Opportunity \cost is the \cost of choo\sing one option over another.

B. Opportunity \cost is the \cost of choo\sing one option over all other options.

Correct C. Opportunity \cost is the \cost of choo\sing one option over the next best option.

D. Opportunity \cost is the \cost of choo\sing one option over the next best option and all other options.

Correct Answer: C

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Question 5

A government is considering a tax reform to reduce the tax burden on low-income households. U\sing the concept of tax incidence, explain how the tax reform can affect the tax burden on low-income households and the government's revenue.

Correct A. The tax reform will reduce the tax burden on low-income households and increase the government's revenue.

B. The tax reform will increase the tax burden on low-income households and reduce the government's revenue.

C. The tax reform will have no effect on the tax burden on low-income households and the government's revenue.

D. The tax reform will increase the tax burden on low-income households and increase the government's revenue.

Correct Answer: A

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Question 6

A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape on the consumer's marginal rate of substitution (MRS)?

A. The MRS is cons\tant

B. The MRS is increa\sing

Correct C. The MRS is decrea\sing

D. The MRS is undefined

Correct Answer: C

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Question 7

Agricultural production in Nigeria is characterized by low productivity and low yields. What is the likely cause of this phenomenon?

A. Lack of mechanization

B. Inadequate use of fertilizers and pesticides

C. Insufficient irrigation

Correct D. All of the above

Correct Answer: D

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Question 8

The GDP of a country is calculated as the sum of the value of all final goods and services produced within its borders. What is the implication of this definition on the measurement of GDP?

A. GDP only measures the value of goods and services produced for domestic consumption

B. GDP only measures the value of goods and services produced for export

Correct C. GDP measures the value of all final goods and services produced within the country's borders

D. GDP only measures the value of intermediate goods and services

Correct Answer: C

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Question 9

The demand for a good is represented by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. What is the equilibrium price and quantity?

A. P = 25, Q = 50

Correct B. P = 50, Q = 25

C. P = 75, Q = 10

D. P = 10, Q = 75

Correct Answer: B

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Question 10

A consumer has a budget of ₦1000 and faces the following prices: Q1 = ₦200, Q2 = ₦300, Q3 = ₦400. What is the consumer's optimal bundle of goods?

Correct A. Q1 = 2, Q2 = 1, Q3 = 1

B. Q1 = 1, Q2 = 2, Q3 = 1

C. Q1 = 1, Q2 = 1, Q3 = 2

D. Q1 = 2, Q2 = 2, Q3 = 0

Correct Answer: A

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Question 11

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

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 12

A government is considering a policy to reduce poverty in a rural area. The policy involves providing subsidies to farmers to increase crop yields. If the government's budget for the policy is ₦100 million and the \cost of providing subsidies to each farmer is ₦50,000, how many farmers can be subsidized with the available budget?

A. 1000

Correct B. 2000

C. 5000

D. 10000

Correct Answer: B

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Question 13

A consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of units of good X consumed and y is the number of units of good Y consumed. If the consumer's budget constraint is 2x + 3y = 10 and the price of good X is ₦2 per unit and the price of good Y is ₦3 per unit, find the optimal consumption bundle that maximizes utility.

Correct A. (2, 2)

B. (3, 1)

C. (4, 0)

D. (0, 4)

Correct Answer: A

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Question 14

A firm's production function is given by Q(x) = 2x^2 + 5x + 1, where x is the number of units of labor employed. If the firm's \cost function is C(x) = 2x^2 + 5x + 1, find the value of x that minimizes \cost.

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 15

A government is considering a policy to reduce poverty in a rural area. The policy involves providing subsidies to farmers to increase crop yields. If the government's budget for the policy is ₦100 million and the \cost of providing subsidies to each farmer is ₦50,000, how many farmers can be subsidized with the available budget?

A. 1000

Correct B. 2000

C. 5000

D. 10000

Correct Answer: B

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Question 16

The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?

Correct A. 20%

B. 30%

C. 40%

D. 50%

Correct Answer: A

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Question 17

A country's GDP is 100 billion naira, and its GNP is 120 billion naira. What is the net factor income from abroad?

A. 20 billion naira

Correct B. 30 billion naira

C. 40 billion naira

D. 50 billion naira

Correct Answer: B

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Question 18

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 20%, what is the percentage change in labor required, assuming that the capital remains cons\tant?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 19

A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the exports, and M is the imports. If the country's exports are 100 billion naira and its imports are 80 billion naira, what is the balance of payments?

Correct A. 20 billion naira

B. 30 billion naira

C. 40 billion naira

D. 50 billion naira

Correct Answer: A

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Question 20

A firm's demand function is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?

Correct A. 20%

B. 30%

C. 40%

D. 50%

Correct Answer: A

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Question 21

In a perfectly competitive market, the demand curve for a firm's product is its

Correct A. marginal revenue curve

B. marginal \cost curve

C. average revenue curve

D. average \cost curve

Correct Answer: A

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Question 22

A monopolist faces a demand curve with the following equation: Q = 100 - 2P. The monopolist's marginal \cost is cons\tant at ₦20. What is the profit-maximizing price?

A. ₦40

B. ₦50

Correct C. ₦60

D. ₦70

Correct Answer: C

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Question 23

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 2x + 3y = ₦100, what is the optimal bundle of goods?

Correct A. x = 20, y = 10

B. x = 15, y = 20

C. x = 10, y = 30

D. x = 5, y = 40

Correct Answer: A

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Question 24

A firm's production function is given by Q = 2L + 3K, where L and K are the quantities of labor and capital, respectively. If the firm's \cost function is given by C = 10L + 20K, what is the profit-maximizing level of output?

A. Q = 10

B. Q = 20

Correct C. Q = 30

D. Q = 40

Correct Answer: C

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Question 25

A monopolist faces a demand curve with the following equation: Q = 100 - 2P. The monopolist's marginal \cost is cons\tant at ₦20. What is the profit-maximizing quantity?

A. Q = 20

B. Q = 30

Correct C. Q = 40

D. Q = 50

Correct Answer: C

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