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?
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?
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?
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?
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?
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?
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?
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?
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.
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?
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?
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?
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?
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?
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.
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