POST UTME RSU 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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%
B. 20%
C. 30%
D. 40%
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.
A. x = 5, y = 5
B. x = 10, y = 0
C. x = 0, y = 10
D. x = 5, y = 10
Question 3
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
C. The MRS is decrea\sing
D. The MRS is undefined
Question 4
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
B. 2
C. 3
D. 4
Question 5
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
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
Question 6
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). If the country's consumption (C) is ₦500 billion, investment (I) is ₦200 billion, government sp\ending (G) is ₦300 billion, exports (X) are ₦400 billion, and imports (M) are ₦200 billion, what is the country's GDP?
A. ₦1.3 trillion
B. ₦1.5 trillion
C. ₦1.7 trillion
D. ₦2.0 trillion
Question 7
A country's balance of payments is given by the following table. What is the country's current account balance?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 8
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
C. ₦100, 0 units
D. ₦125, 50 units
Question 9
A firm's production function is given by Q = 2L^2 + 5L. The wage rate is ₦10 per hour. What is the firm's profit-maximizing level of employment?
A. 5
B. 10
C. 15
D. 20
Question 10
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.
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.
Question 11
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
B. 2000
C. 5000
D. 10000
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor (MPL) and the marginal product of capital (MPK)?
A. MPL = 0.5, MPK = 0.25
B. MPL = 0.25, MPK = 0.5
C. MPL = 0.5, MPK = 1
D. MPL = 1, MPK = 0.5
Question 13
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.
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.
Question 14
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
B. P = 50, Q = 25
C. P = 75, Q = 10
D. P = 10, Q = 75
Question 15
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%?
A. 20%
B. 30%
C. 40%
D. 50%

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