POST UTME AFE BABALOLA UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GNP is ( 150 ) billion naira, its imports are ( 30 ) billion naira, and its exports are ( 40 ) billion naira. Calculate the country's net foreign income.
A. ( 10 ) billion naira
B. ( 20 ) billion naira
C. ( 30 ) billion naira
D. ( 40 ) billion naira
Question 2
A country is experiencing a trade deficit of $100 million. The country's imports are valued at $200 million and its exports are valued at $100 million. What is the country's balance of payments deficit?
A. The country's balance of payments deficit is $100 million.
B. The country's balance of payments deficit is $200 million.
C. The country's balance of payments deficit is $300 million.
D. The country's balance of payments deficit is $400 million.
Question 3
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is equal to its marginal \cost (MC), what is the price at which the firm will produce?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 4
A monopolist faces a demand curve given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The monopolist's marginal \cost (MC) is given by the equation MC = 10 + 2Q, where Q is the quantity produced. Find the monopolist's profit-maximizing quantity and price.
A. Q = 20, P = ₦150
B. Q = 30, P = ₦200
C. Q = 40, P = ₦250
D. Q = 50, P = ₦300
Question 5
A firm is producing a good with a total revenue of ₦100,000 and a total \cost of ₦80,000. If the price elasticity of demand is 1.5, what is the price of the good?
A. ₦500
B. ₦600
C. ₦700
D. ₦800
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 - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 7
A perfectly competitive firm's supply curve is a rec\tangular hyperbola. What is the relationship between the firm's marginal \cost (MC) and its average total \cost (ATC) in the short run?
A. MC = ATC
B. MC < ATC
C. MC > ATC
D. MC = ATC - Fixed Costs
Question 8
The demand for a good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the good is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price. What is the equilibrium price and quantity?
A. The equilibrium price is $50 and the equilibrium quantity is 100 units.
B. The equilibrium price is $100 and the equilibrium quantity is 200 units.
C. The equilibrium price is $200 and the equilibrium quantity is 300 units.
D. The equilibrium price is $50 and the equilibrium quantity is 200 units.
Question 9
A monopolist produces a good with a demand curve given by Q = 100 - 2P and a \cost function given by C(Q) = 10Q + 100. What is the profit-maximizing price and quantity?
A. P = 50, Q = 50
B. P = 40, Q = 60
C. P = 60, Q = 40
D. P = 70, Q = 30
Question 10
A consumer has a budget of $100 and is choo\sing between two goods, A and B. The price of good A is $20 and the price of good B is $30. The consumer's utility function is given by U = 2x + 3y, where x is the quantity of good A and y is the quantity of good B. What is the consumer's optimal consumption bundle?
A. The consumer's optimal consumption bundle is (2, 2).
B. The consumer's optimal consumption bundle is (3, 1).
C. The consumer's optimal consumption bundle is (1, 3).
D. The consumer's optimal consumption bundle is (4, 0).
Question 11
A firm is producing a good with a marginal \cost of ₦50 and a marginal revenue of ₦60. If the firm is producing 100 units, what is the profit-maximizing quantity?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 12
A firm's production function is \( Q = f\( L \ \) = 3L^2 ). If the firm's revenue function is \( R = 20Q \) and the wage rate is \( W = 10 \), calculate the firm's profit-maximizing output level.
A. \( Q = 10 \)
B. \( Q = 20 \)
C. \( Q = 30 \)
D. \( Q = 40 \)
Question 13
A country has a money supply of ₦100 billion and a velocity of 2. The country's price level is 100. What is the country's nominal GDP?
A. ₦200 billion
B. ₦300 billion
C. ₦400 billion
D. ₦500 billion
Question 14
A country's GDP is ₦500 billion, and its GNP is ₦550 billion. What is the value of the country's net factor income from abroad?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 15
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 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%

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