Practice post utme rsu economics 2022 Past Questions

Question 1

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦50, and it currently uses 100 units of labor and 50 units of capital, calculate the firm's current total \cost.

Correct A. ₦10000

B. ₦15000

C. ₦20000

D. ₦25000

Correct Answer: A

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Question 2

A government imposes a tax on a firm's output. If the firm's pre-tax price is ₦100 and the tax rate is 20%, what is the firm's new price?

A. ₦80

Correct B. ₦90

C. ₦100

D. ₦110

Correct Answer: B

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Question 3

A firm's production function is given by Q = 3L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦50, and it currently uses 100 units of labor and 50 units of capital, calculate the firm's current total \cost.

A. ₦15000

Correct B. ₦20000

C. ₦25000

D. ₦30000

Correct Answer: B

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Question 4

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦50, and it currently uses 100 units of labor and 50 units of capital, calculate the firm's current total \cost.

Correct A. ₦10000

B. ₦15000

C. ₦20000

D. ₦25000

Correct Answer: A

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Question 5

A government imposes a tax on a firm's output. If the firm's pre-tax price is ₦100 and the tax rate is 20%, what is the firm's new price?

A. ₦80

Correct B. ₦90

C. ₦100

D. ₦110

Correct Answer: B

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Question 6

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, 20 units

B. ₦75, 30 units

Correct C. ₦100, 40 units

D. ₦125, 50 units

Correct Answer: C

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Question 7

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

Correct C. L = 15 units, K = 30 units

D. L = 20 units, K = 40 units

Correct Answer: C

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Question 8

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 optimal quantities of the two goods.

A. x = 10 units, y = 15 units

B. x = 15 units, y = 20 units

Correct C. x = 20 units, y = 25 units

D. x = 25 units, y = 30 units

Correct Answer: C

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Question 9

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 returns to scale.

Correct A. Increa\sing returns to scale

B. Decrea\sing returns to scale

C. Cons\tant returns to scale

D. No returns to scale

Correct Answer: A

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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

Correct B. Inelastic

C. Perfectly elastic

D. Perfectly inelastic

Correct Answer: B

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Question 11

Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?

A. The firm will decrease its output

Correct B. The firm will increase its output

C. The firm's output will remain unchanged

D. The firm will exit the market

Correct Answer: B

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Question 12

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 ₦100 billion, investment (I) is ₦50 billion, government sp\ending (G) is ₦75 billion, exports (X) are ₦200 billion, and imports (M) are ₦150 billion, what is the country's GDP?

A. ₦275 billion

Correct B. ₦325 billion

C. ₦375 billion

D. ₦425 billion

Correct Answer: B

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Question 13

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

Correct C. The firm's output will remain unchanged

D. The firm will exit the market

Correct Answer: C

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Question 14

Consider a production function that exhibits increa\sing returns to scale. If the firm's output increases by 20% and the input increases by 10%, what will be the effect on the firm's average product?

Correct A. The average product will increase

B. The average product will decrease

C. The average product will remain unchanged

D. The effect on the average product is ambiguous

Correct Answer: A

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Question 15

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%

Correct B. 30%

C. 40%

D. 50%

Correct Answer: B

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Question 16

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

Correct C. 1500

D. 1800

Correct Answer: C

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Question 17

A country's balance of payments is given by the following equation: BOP = X - M. If the country's exports (X) are ₦500 billion and imports (M) are ₦300 billion, what is the balance of payments?

Correct A. ₦200 billion

B. ₦300 billion

C. ₦400 billion

D. ₦500 billion

Correct Answer: A

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Question 18

A firm operates in a perfectly competitive market. If the market price is $10 and the firm's marginal \cost is $8, what is the firm's profit-maximizing output?

A. 10 units

Correct B. 20 units

C. 30 units

D. 40 units

Correct Answer: B

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Question 19

A country's agricultural sector is characterized by the following production function: Q = 100L^0.5K^0.5. If the country has 100 laborers and 100 capital units, what is the total output?

A. 1000 units

B. 2000 units

Correct C. 3000 units

D. 4000 units

Correct Answer: C

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Question 20

A firm's revenue function is given by R(q) = 20q^2 - 10q. If the firm produces 10 units, what is the total revenue?

A. 1000

B. 1200

Correct C. 1500

D. 1800

Correct Answer: C

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Question 21

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

Correct C. 3000 units

D. 4000 units

Correct Answer: C

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Question 22

A firm's \cost function is given by C(q) = 10q^2 + 20q + 10. If the firm produces 15 units, what is the total \cost?

A. 1000

B. 1200

Correct C. 1500

D. 1800

Correct Answer: C

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Question 23

A country's agricultural sector is characterized by the following production function: Q = 200L^0.5K^0.5. If the country has 50 laborers and 50 capital units, what is the total output?

A. 1000 units

B. 2000 units

Correct C. 3000 units

D. 4000 units

Correct Answer: C

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Question 24

A firm's revenue function is given by R(q) = 15q^2 - 5q. If the firm produces 20 units, what is the total revenue?

A. 1000

B. 1200

C. 1500

D. 1800

Correct Answer: VIEW ANSWER

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Question 25

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price and quantity?

Correct A. $ P = 40, Q = 30 $

B. $ P = 50, Q = 25 $

C. $ P = 60, Q = 20 $

D. $ P = 70, Q = 15 $

Correct Answer: A

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