POST UTME AFE BABALOLA UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is in equilibrium when the current account is equal to the capital account. What is the value of the exchange rate that achieves this equilibrium?
A. €1 = $1.50
B. €1 = $1.25
C. €1 = $1.00
D. €1 = $0.80
Question 2
A consumer's demand function is given by Q = 100 - 2P. The consumer's income is ₦1000. Find the consumer's optimal price and quantity.
A. P = 40, Q = 60
B. P = 30, Q = 70
C. P = 20, Q = 80
D. P = 50, Q = 50
Question 3
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. x = 200, y = 0
B. x = 100, y = 50
C. x = 50, y = 100
D. x = 0, y = 200
Question 4
A consumer's indifference curve is given by the equation U = 2X + 3Y. If the consumer's income is 12 and the price of good X is 2, what is the consumer's optimal bundle of goods X and Y?
A. X = 2, Y = 4
B. X = 4, Y = 2
C. X = 6, Y = 0
D. X = 0, Y = 6
Question 5
A consumer's indifference curve is downward sloping. What does this imply about the consumer's marginal rate of substitution (MRS) between two goods?
A. The MRS is cons\tant.
B. The MRS is decrea\sing.
C. The MRS is increa\sing.
D. The MRS is zero.
Question 6
A firm's \cost function is given by C(q) = 10q + 100. The firm's revenue function is given by R(q) = 20q. Find the firm's profit-maximizing quantity.
A. q = 5
B. q = 10
C. q = 15
D. q = 20
Question 7
A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left, what will be the effect on the firm's output?
A. The firm's output will increase.
B. The firm's output will decrease.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Question 8
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%
Question 9
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. x = 200, y = 0
B. x = 100, y = 50
C. x = 50, y = 100
D. x = 0, y = 200
Question 10
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 11
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 $100 billion, and C = $30 billion, I = $20 billion, G = $10 billion, X = $20 billion, and M = $15 billion, what is the value of the trade balance?
A. $5 billion
B. $10 billion
C. $15 billion
D. $20 billion
Question 12
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 20, what is the profit-maximizing price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 13
Determine the returns to scale for a firm with a production function Q = 2L^2K, where Q is output, L is labor, and K is capital.
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale
Question 14
A consumer's utility function is given by U(x, y) = 2x + 3y. The consumer's budget constraint is 2x + 3y = 12. Find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 1, y = 5
Question 15
A consumer's budget constraint is given by 2X + 3Y = 12. If the consumer's income is 12 and the price of good X is 2, what is the consumer's optimal bundle of goods X and Y?
A. X = 2, Y = 4
B. X = 4, Y = 2
C. X = 6, Y = 0
D. X = 0, Y = 6

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