POST UTME RSU 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's inflation rate can be calculated u\sing the following formula: inflation rate = \( CPI - CPI_last_year \) / CPI_last_year. If the current CPI is 120 and the CPI last year was 100, what is the inflation rate?
A. 20%
B. 30%
C. 40%
D. 50%
Question 2
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units, what is the total \cost?
A. 1000
B. 1200
C. 1500
D. 1800
Question 3
A firm is producing a product with a marginal revenue function given by MR = 100 - 2Q, where Q is the quantity produced. If the firm's marginal \cost function is given by MC = 50 + Q, what is the firm's profit-maximizing output?
A. 20
B. 30
C. 40
D. 50
Question 4
A firm is producing a good with a production function given by Q = 2L^2 + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, find the optimal level of labor and capital.
A. L = 5 units, K = 10 units
B. L = 10 units, K = 20 units
C. L = 15 units, K = 30 units
D. L = 20 units, K = 40 units
Question 5
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, and the firm's budget constraint is 100L + 200K = ₦100,000, what is the optimal level of production?
A. 200 units
B. 250 units
C. 300 units
D. 350 units
Question 6
A monopolistically competitive firm faces a demand curve that is downward-sloping. If the firm's marginal revenue (MR) is equal to its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output
B. The firm will decrease its output
C. The firm's output will remain unchanged
D. The firm will exit the market
Question 7
A consumer has a utility function U(x, y) = 2x + 3y. The prices of x and y are $2 and $3 respectively. What is the consumer's budget constraint?
A. \( 2x + 3y = 6 \)
B. \( 2x + 3y = 12 \)
C. \( 2x + 3y = 18 \)
D. \( 2x + 3y = 24 \)
Question 8
A consumer's utility function is given by U = 2x + 3y. If the prices of x and y are ₦5 and ₦10 respectively, and the consumer's budget is ₦100, what is the optimal level of consumption?
A. 10 units of x and 5 units of y
B. 15 units of x and 3 units of y
C. 20 units of x and 2 units of y
D. 25 units of x and 1 unit of y
Question 9
A consumer has a utility function given by U = x^2 + 2y^2, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 100, what is the consumer's optimal bundle of goods?
A. (10, 20)
B. (20, 10)
C. (30, 5)
D. (5, 30)
Question 10
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦20 and ₦30 respectively, find the elasticity of demand.
A. Unit elastic
B. Inelastic
C. Perfectly elastic
D. Perfectly inelastic
Question 11
A firm faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the firm's profit-maximizing price and quantity?
A. \( P = 40, Q = 30 \)
B. \( P = 50, Q = 25 \)
C. \( P = 60, Q = 20 \)
D. \( P = 70, Q = 15 \)
Question 12
A country's industrial sector is characterized by the following production function: Q = 50L^0.7K^0.3. If the country has 100 laborers and 50 capital units, what is the total output?
A. 1000 units
B. 2000 units
C. 3000 units
D. 4000 units
Question 13
A firm has a production function Q = 2L^0.5K^0.5. The price of L is $10 and the price of K is $20. What is the firm's \cost-minimizing input combination?
A. \( L = 100, K = 50 \)
B. \( L = 50, K = 100 \)
C. \( L = 200, K = 25 \)
D. \( L = 25, K = 200 \)
Question 14
A firm is producing a good u\sing a production function Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, and the firm's budget constraint is 100L + 200K = ₦100,000, what is the optimal level of production?
A. 200 units
B. 250 units
C. 300 units
D. 350 units
Question 15
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 100, what is the consumer's optimal bundle of goods?
A. (20, 30)
B. (30, 20)
C. (40, 10)
D. (10, 40)

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