POST UTME RSU 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's agricultural sector is characterized by a high degree of market power, leading to a significant price distortion. If the government intervenes to correct the price distortion, what is the likely outcome for the agricultural sector?
A. The agricultural sector will become more competitive.
B. The agricultural sector will become less competitive.
C. The agricultural sector will experience a decrease in output.
D. The agricultural sector will experience an increase in output.
Question 2
A country's inflation rate is given by the following equation: 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. 25%
C. 30%
D. 35%
Question 3
A consumer's indifference curve is downward sloping and convex to the origin. If the consumer's income increases, what is the likely outcome for the consumer's optimal consumption bundle?
A. The consumer will consume more of both goods.
B. The consumer will consume less of both goods.
C. The consumer will consume more of good X and less of good Y.
D. The consumer will consume more of good Y and less of good X.
Question 4
A country's balance of payments (BOP) account is in equilibrium when its current account is equal to its capital account. If the country's current account is in deficit, what is the likely outcome for its capital account?
A. The capital account will be in surplus.
B. The capital account will be in deficit.
C. The capital account will be in equilibrium.
D. The capital account will be zero.
Question 5
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 10x + 5y = 50, and the prices of the two goods are $2 and $5, respectively, what is the consumer's optimal bundle of goods?
A. x = 2, y = 5
B. x = 3, y = 4
C. x = 4, y = 3
D. x = 5, y = 2
Question 6
A firm's production function is given by the equation Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the output?
A. Q = 25 units
B. Q = 30 units
C. Q = 35 units
D. Q = 40 units
Question 7
A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, the GDP of a country can be affected by the following factors: (i) the value of imports, (ii) the value of exports, and (iii) the value of intermediate goods. Which of the following statements is correct?
A. The value of imports is added to the GDP.
B. The value of exports is subtracted from the GDP.
C. The value of intermediate goods is added to the GDP.
D. The value of imports and exports is added to the GDP.
Question 8
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are L = 4 and H = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the given input levels?
A. 1.5
B. 2.5
C. 3.5
D. 4.5
Question 9
A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labor, and H is capital. If the firm's current labor and capital inputs are L = 4 and H = 9, respectively, what is the firm's total \cost?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 10
A consumer's indifference curve is given by U = 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 $2 and $5, respectively, what is the consumer's optimal bundle of goods?
A. x = 2, y = 5
B. x = 3, y = 4
C. x = 4, y = 3
D. x = 5, y = 2
Question 11
A consumer has a utility function given by U = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 12. Determine the consumer's optimal consumption bundle.
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 12
A central bank uses monetary policy to control inflation. If the central bank increases the reserve requirement for commercial banks, what is the effect on the money supply?
A. Increase in money supply
B. Decrease in money supply
C. No change in money supply
D. Increase in interest rates
Question 13
Determine the optimal tax rate for a country with a mixed economy, given that the government aims to maximize revenue while minimizing the deadweight loss.
A. 0% tax rate
B. 10% tax rate
C. 20% tax rate
D. 30% tax rate
Question 14
A government wants to reduce inequality in a country by redistributing income from the rich to the poor. What type of economic policy is this?
A. Progressive taxation
B. Regressive taxation
C. Proportional taxation
D. Redistributive policy
Question 15
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 10x + 5y = 50, and the prices of the two goods are $2 and $5, respectively, what is the consumer's optimal bundle of goods?
A. x = 2, y = 5
B. x = 3, y = 4
C. x = 4, y = 3
D. x = 5, y = 2

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