POST UTME RSU 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal revenue function is given by MR = 50 - 2Q. What is the monopolist's optimal price?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 2
A country's balance of payments is given by the following table:\n\n| Item | Value |\n| --- | --- |\n| Exports | ₦1000 |\n| Imports | ₦1500 |\n| Net Factor Income | ₦200 |\n| Net Transfer | ₦300 |\n\nWhat is the country's balance of payments?
A. ₦-500
B. ₦0
C. ₦500
D. ₦1000
Question 3
A firm operating under perfect competition faces a market demand curve that is linear and downward-sloping. If the firm's marginal revenue (MR) curve intersects the market demand curve at a point where the price is ₦100, and the quantity demanded at this price is 100 units, what is the firm's total revenue (TR) at this point?
A. ₦10,000
B. ₦12,000
C. ₦15,000
D. ₦20,000
Question 4
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 wants to increase its output by 20% while keeping labor cons\tant at 16 units, how much capital (in units) must it invest?
A. 32
B. 64
C. 128
D. 256
Question 5
A consumer in Nigeria has a utility function U(x,y) = 2x + 3y, where x is the quantity of good X and y is the quantity of good Y. If the price of good X is ₦50 and the price of good Y is ₦30, what is the optimal bundle of goods?
A. (10,20)
B. (20,10)
C. (30,5)
D. (5,30)
Question 6
A monopolist has a demand function given by p = 100 - 2q. If the firm's marginal \cost is 10, what is the optimal quantity to produce?
A. 20
B. 30
C. 40
D. 50
Question 7
A country's import demand function is given by M = 100 - 2P, where M is the quantity of imports and P is the price of imports. If the price of imports is $10, find the quantity of imports.
A. 40
B. 50
C. 60
D. 70
Question 8
A firm is producing a good with a production function F(L,K) = L^0.4 K^0.6. If the firm has 100 units of labor and 50 units of capital, find the value of the marginal product of labor.
A. 0.4
B. 0.6
C. 0.8
D. 1.0
Question 9
A firm's average total \cost curve is U-shaped. What does this imply about the firm's production techno\logy?
A. The firm's production techno\logy exhibits increa\sing returns to scale.
B. The firm's production techno\logy exhibits decrea\sing returns to scale.
C. The firm's production techno\logy exhibits cons\tant returns to scale.
D. The firm's production techno\logy exhibits increa\sing marginal \costs.
Question 10
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 10x + 5y = 50, and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (5, 5)
B. (10, 0)
C. (0, 10)
D. (5, 10)
Question 11
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 wants to increase its output by 20% while keeping labor cons\tant at 16 units, how much capital (in units) must it invest?
A. 32
B. 64
C. 128
D. 256
Question 12
Suppose 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 supply of the product is given by the equation Qs = 2P - 10, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 13
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer has a budget constraint of 100 and the prices of x and y are 5 and 3 respectively, what is the optimal bundle of x and y?
A. x = 10, y = 10
B. x = 15, y = 5
C. x = 20, y = 0
D. x = 0, y = 20
Question 14
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, find the balance of payments.
A. ₦20 billion
B. ₦40 billion
C. ₦60 billion
D. ₦80 billion
Question 15
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the monopolist's marginal revenue is MR = 200 - 4Q, find the profit-maximizing quantity.
A. 50
B. 75
C. 100
D. 125

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