POST UTME AFE BABALOLA UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Inflation is a sustained increase in the general price level of goods and services in an economy. Which of the following is a cause of inflation?
A. Monetary policy
B. Fiscal policy
C. Supply and demand imbalance
D. All of the above
Question 2
A consumer's utility function is given by U(x, y) = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. x = 20, y = 10
B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25
Question 3
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. The consumer's budget constraint is 2x + 3y = 30. What is the consumer's optimal bundle of goods?
A. x = 10, y = 5
B. x = 8, y = 6
C. x = 6, y = 8
D. x = 4, y = 10
Question 4
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm's revenue function is given by R(x) = 3x^2 - 2x + 1, what is the firm's profit-maximizing output level?
A. x = 1
B. x = 2
C. x = 3
D. x = 4
Question 5
Consider a country with a GDP of ₦1.2 trillion and a GNP of ₦1.3 trillion. If the net factor income from abroad is ₦50 billion, what is the value of the country's net domestic product?
A. ₦1.25 trillion
B. ₦1.3 trillion
C. ₦1.35 trillion
D. ₦1.4 trillion
Question 6
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost curve is MC = 20. What is the firm's optimal price and quantity?
A. P = 90, Q = 45
B. P = 80, Q = 40
C. P = 70, Q = 35
D. P = 60, Q = 30
Question 7
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (10, 20)
B. (15, 15)
C. (20, 10)
D. (25, 5)
Question 8
The concept of scarcity in economics implies that resources are limited, and choices must be made to allocate them efficiently. Which of the following best describes the opportunity \cost of a choice?
A. The value of the next best alternative that is given up when a choice is made
B. The \cost of producing a good or service
C. The price of a good or service
D. The quantity of a good or service produced
Question 9
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
A. 1
B. 2
C. 3
D. 4
Question 10
A country's import demand function is given by Qd = 100 - 2P + 5Y, where Qd is the quantity demanded, P is the price, and Y is the income. If the price is 60 and the income is 200, what is the quantity demanded?
A. 40
B. 50
C. 60
D. 70
Question 11
A country's money supply is given by M = 1000 + 0.5Y. If the country's income is ₦100 billion, what is the country's money supply?
A. ₦50 billion
B. ₦55 billion
C. ₦60 billion
D. ₦65 billion
Question 12
A government imposes a tax on imports of 10% ad valorem. If the price of the imported good is ₦100, what is the amount of tax paid on a quantity of 100 units?
A. ₦1000
B. ₦500
C. ₦2000
D. ₦1500
Question 13
A firm faces the following demand curve: Q = 100 - 2P. If the firm's marginal \cost is ₦20, what is the optimal price to charge?
A. ₦40
B. ₦30
C. ₦50
D. ₦60
Question 14
A firm's demand function is given by Q = 100 - 2P. If the firm's supply function is given by Q = 2P - 10, what is the firm's equilibrium price?
A. ₦20
B. ₦25
C. ₦30
D. ₦35
Question 15
A firm's production function is given by \( Q = 2L^{0.5}K^{0.5} \), where ( Q ) is the output, ( L ) is the labor and ( K ) is the capital. If the firm uses 100 units of labor and 400 units of capital, find the marginal product of labor.
A. \( MP_L = 0.5 \)
B. \( MP_L = 1 \)
C. \( MP_L = 2 \)
D. \( MP_L = 4 \)

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