POST UTME AFE BABALOLA UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units of output, what is the total \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 2
The concept of 'dualism' in the context of agricultural development in Nigeria refers to the coexistence of modern and traditional farming practices. Which of the following best describes the implications of this dualism on agricultural productivity?
A. Increased productivity due to the adoption of modern farming techniques
B. Decreased productivity due to the inefficiencies of traditional farming practices
C. No significant impact on productivity due to the coexistence of both practices
D. Increased productivity due to the diversification of farming practices
Question 3
The demand for a product is elastic if a small change in price leads to a large change in quantity demanded. Which of the following is a correct example of an elastic demand?
A. The demand for a luxury item such as a private jet is elastic.
B. The demand for a necessity such as bread is inelastic.
C. The demand for a product with many substitutes such as coffee is elastic.
D. The demand for a product with no substitutes such as water is inelastic.
Question 4
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices is greater than the percentage change in its exchange rate. U\sing the given data, calculate the percentage change in the exchange rate.
A. 10%
B. 15%
C. 20%
D. 25%
Question 5
A firm's production function is given by \( Q = 2L^2 + 3K^2 \), where ( L ) is labor and ( K ) is capital. If the firm's \cost function is given by \( C = 10L + 20K \), what is the firm's optimal input combination?
A. \( L = 5, K = 10 \)
B. \( L = 10, K = 5 \)
C. \( L = 15, K = 15 \)
D. \( L = 20, K = 20 \)
Question 6
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Question 7
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is the marginal revenue?
A. ₦1,800
B. ₦1,600
C. ₦1,400
D. ₦1,200
Question 8
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be allocated to other goods. Which of the following is a correct example of scarcity?
A. A farmer has 100 hectares of land to plant either maize or wheat.
B. A country has an abundance of natural resources to produce all the goods it needs.
C. A consumer has a limited budget to purchase all the goods they want.
D. A factory can produce an unlimited quantity of goods without any constraints.
Question 9
The demand for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by Qs = 2P - 100, where Qs is the quantity supplied. Find the equilibrium price and quantity.
A. P = 50, Q = 100
B. P = 75, Q = 150
C. P = 100, Q = 200
D. P = 125, Q = 250
Question 10
The production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. What is the return to scale of this production function?
A. Increa\sing returns to scale
B. Decrea\sing returns to scale
C. Cons\tant returns to scale
D. Negative returns to scale
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the total product?
A. 8
B. 16
C. 32
D. 64
Question 12
The government imposes a tax on a particular good, which leads to a decrease in its demand. What is the effect of this tax on the government's revenue?
A. The government's revenue increases
B. The government's revenue decreases
C. The government's revenue remains the same
D. The government's revenue becomes negative
Question 13
A consumer's utility function is given by U(x, y) = 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 of x and y?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 14
A country's balance of payments is given by the following equation: BOP = X - M, where BOP is the balance of payments, X is exports, and M is imports. If the country's exports are $100 billion and imports are $120 billion, what is the balance of payments?
A. $10 billion surplus
B. $10 billion deficit
C. $20 billion surplus
D. $20 billion deficit
Question 15
A government imposes a tax of ₦10 per unit on a firm's output. The firm's supply curve is given by Q = 100 - 2P. What is the new supply curve after the tax?
A. Q = 100 - 2P
B. Q = 90 - 2P
C. Q = 80 - 2P
D. Q = 70 - 2P

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