Practice post utme rsu economics 2024 Past Questions

Question 1

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 value of the cross-price elasticity of demand?

A. 4

Correct B. -1

C. 2

D. 1

Correct Answer: B

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Question 2

A firm is producing a good with a total revenue of TR = 1000 + 20Q - Q^2, where Q is the quantity produced. If the firm's marginal revenue is 10, what is the value of the total revenue?

A. 1200

B. 1500

Correct C. 1800

D. 2000

Correct Answer: C

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Question 3

A consumer has a budget of ₦1000 and is choo\sing between two goods, A and B. The price of good A is ₦200 and the price of good B is ₦300. If the consumer's income elasticity of demand for good A is 0.5, what is the value of the cross-price elasticity of demand for good B?

A. 0.2

Correct B. 0.5

C. 1

D. 2

Correct Answer: B

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Question 4

A firm is producing a good with a total \cost of TC = 500 + 10Q + Q^2, where Q is the quantity produced. If the firm's marginal \cost is 20, what is the value of the total \cost?

A. 700

B. 800

Correct C. 900

D. 1000

Correct Answer: C

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Question 5

A consumer is choo\sing between two goods, A and B. The price of good A is ₦200 and the price of good B is ₦300. If the consumer's income elasticity of demand for good A is 0.5, what is the value of the cross-price elasticity of demand for good B?

A. 0.2

Correct B. 0.5

C. 1

D. 2

Correct Answer: B

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Question 6

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 the firm's current output price is p = ₦200, what is the firm's current profit-maximizing level of output?

A. 50 units

Correct B. 75 units

C. 100 units

D. 125 units

Correct Answer: B

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Question 7

A country's inflation rate is 5% per annum, and its nominal interest rate is 10% per annum. If the real interest rate is 4% per annum, what is the expected rate of return on a 2-year bond?

A. 8%

Correct B. 9%

C. 10%

D. 11%

Correct Answer: B

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Question 8

A firm's \cost function is given by C(Q) = 100 + 2Q + 0.5Q^2. If the firm's current output level is Q = 10 units, what is the firm's current total \cost?

A. ₦250

B. ₦300

Correct C. ₦350

D. ₦400

Correct Answer: C

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Question 9

A country's GDP at market price is ₦1,000,000, and its GDP at factor \cost is ₦900,000. What is the country's net factor income from abroad?

A. ₦50,000

Correct B. ₦100,000

C. ₦150,000

D. ₦200,000

Correct Answer: B

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Question 10

A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = ₦50, what is the firm's current quantity demanded?

A. 25 units

Correct B. 50 units

C. 75 units

D. 100 units

Correct Answer: B

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Question 11

Determine the value of the marginal product of labor (MPL) when the production function is given by Q = 2L^2 + 5L + 3, where Q is the quantity produced and L is the number of labor units.

A. 4

Correct B. 6

C. 8

D. 10

Correct Answer: B

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Question 12

A firm has a total revenue function of TR = 100x - 2x^2, where x is the number of units sold. Determine the price elasticity of demand when the quantity demanded is 20 units.

Correct A. 0.5

B. 1

C. 2

D. 3

Correct Answer: A

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Question 13

A country's GDP is given by the equation GDP = C + I + G + $ X - M $, where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦10 trillion, and the values of C, I, G, X, and M are ₦3 trillion, ₦2 trillion, ₦1 trillion, ₦4 trillion, and ₦2 trillion respectively, determine the value of M.

A. ₦1 trillion

Correct B. ₦2 trillion

C. ₦3 trillion

D. ₦4 trillion

Correct Answer: B

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Question 14

A firm is considering two production techno\logies: one that requires 10 units of labor and produces 20 units of output, and another that requires 20 units of labor and produces 40 units of output. Determine the returns to scale for the firm.

A. Increa\sing Returns to Scale

B. Decrea\sing Returns to Scale

Correct C. Cons\tant Returns to Scale

D. No Returns to Scale

Correct Answer: C

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Question 15

A government is considering a tax on a particular good. The demand for the good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the government wants to raise ₦1 billion in revenue, determine the optimal tax rate.

A. 20%

Correct B. 30%

C. 40%

D. 50%

Correct Answer: B

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Question 16

A firm's revenue function is given by R(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 10, find the value of x that maximizes the firm's revenue.

A. 5

Correct B. 10

C. 15

D. 20

Correct Answer: B

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Question 17

A consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of units of good X consumed and y is the number of units of good Y consumed. If the consumer's budget constraint is 10x + 5y = 50, find the optimal values of x and y.

A. x = 2, y = 4

Correct B. x = 3, y = 5

C. x = 4, y = 6

D. x = 5, y = 7

Correct Answer: B

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Question 18

A firm's \cost function is given by C(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm's revenue function is R(x) = 4x^2 + 10x + 5, find the value of x that minimizes the firm's average \cost.

Correct A. 5

B. 10

C. 15

D. 20

Correct Answer: A

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Question 19

A consumer's demand function for a good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the consumer's income is $100 and the price of the good is $20, find the quantity demanded.

A. 40

Correct B. 50

C. 60

D. 70

Correct Answer: B

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Question 20

A firm's supply function is given by Q = 2P + 10, where Q is the quantity supplied and P is the price. If the firm's marginal \cost function is MC(P) = 2P + 10, find the value of P that maximizes the firm's profit.

A. 10

Correct B. 15

C. 20

D. 25

Correct Answer: B

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Question 21

The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy involves a 10% tax on all agricultural products sold in the market. If the total revenue from the sale of agricultural products before the tax policy was ₦100 million, and the elasticity of demand for agricultural products is 0.5, what is the new revenue from the sale of agricultural products after the tax policy?

A. ₦90 million

Correct B. ₦110 million

C. ₦120 million

D. ₦130 million

Correct Answer: B

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Question 22

A firm is producing a good with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the price of the good is ₦100, the wage rate is ₦20 per unit of labor, and the rental rate of capital is ₦30 per unit of capital, what is the profit-maximizing level of labor?

A. 10 units

B. 20 units

Correct C. 30 units

D. 40 units

Correct Answer: C

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Question 23

The government of Nigeria has introduced a new economic development plan aimed at reducing poverty and inequality. The plan involves increa\sing public exp\enditure on education and healthcare by 20% and reducing the tax rate on small bu\sinesses by 10%. If the initial public exp\enditure on education and healthcare was ₦50 billion, and the initial tax rate on small bu\sinesses was 20%, what is the new tax revenue from small bu\sinesses after the plan?

A. ₦40 billion

Correct B. ₦45 billion

C. ₦50 billion

D. ₦55 billion

Correct Answer: B

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Question 24

A firm is producing a good with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the price of the good is ₦100, the wage rate is ₦20 per unit of labor, and the rental rate of capital is ₦30 per unit of capital, what is the profit-maximizing level of capital?

A. 10 units

B. 20 units

Correct C. 30 units

D. 40 units

Correct Answer: C

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Question 25

The government of Nigeria has introduced a new agricultural policy aimed at increa\sing food production and reducing poverty. The policy involves providing subsidies to farmers and increa\sing public exp\enditure on agricultural research and development. If the initial public exp\enditure on agricultural research and development was ₦20 billion, and the initial subsidy provided to farmers was ₦10 billion, what is the new public exp\enditure on agricultural research and development after the policy?

A. ₦25 billion

B. ₦30 billion

Correct C. ₦35 billion

D. ₦40 billion

Correct Answer: C

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