POST UTME AFE BABALOLA UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases by 10% and its capital (K) remains cons\tant, what is the percentage change in output (Q)?
A. -5%
B. -10%
C. 0%
D. 5%
Question 2
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is 200, what is its price (P)?
A. 25
B. 30
C. 35
D. 40
Question 3
A country's GNP is ₦1,500,000,000,000. If the country's net indirect tax is ₦100,000,000,000, what is the country's GDP?
A. ₦1,400,000,000,000
B. ₦1,400,000,000,000
C. ₦1,400,000,000,000
D. ₦1,400,000,000,000
Question 4
A firm's demand function is given by Q = 100 - 2P + 5Y, where Q is the quantity demanded, P is the price, and Y is the income. If the price elasticity of demand is -2, what is the price elasticity of demand with respect to income?
A. 5
B. -5
C. 10
D. -10
Question 5
Determine the equilibrium price and quantity of a commodity in a perfectly competitive market, given the following supply and demand equations: Qd = 100 - 2P and Qs = 50 + 3P.
A. ₦200, 150 units
B. ₦300, 200 units
C. ₦400, 250 units
D. ₦500, 300 units
Question 6
A farmer in Nigeria plans to cultivate 100 hectares of maize. If the price of maize is ₦10,000 per ton, and the \cost of production is ₦8,000 per ton, what is the farmer's profit per ton?
A. ₦2,000
B. ₦3,000
C. ₦4,000
D. ₦5,000
Question 7
A country's GDP is 100 billion naira. Its imports are 20 billion naira, and its exports are 15 billion naira. What is its balance of payments?
A. -5 billion naira
B. 0 billion naira
C. 5 billion naira
D. 10 billion naira
Question 8
The opportunity \cost of producing one more unit of a good is the value of the next best alternative that must be given up. If a firm is producing at a point where the marginal product of labor is 4 units and the wage rate is ₦200 per unit, what is the opportunity \cost of producing one more unit of the good?
A. ₦800
B. ₦400
C. ₦600
D. ₦1000
Question 9
A central bank increases the money supply by ₦100 billion. If the velocity of money is 5, calculate the increase in the price level.
A. 2%
B. 3%
C. 4%
D. 5%
Question 10
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the relationship between the market supply curve and the individual firm's supply curve?
A. The market supply curve is steeper than the individual firm's supply curve.
B. The market supply curve is flatter than the individual firm's supply curve.
C. The market supply curve is identical to the individual firm's supply curve.
D. The market supply curve is vertical while the individual firm's supply curve is horizontal.
Question 11
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2, where Q is the quantity produced. If the firm produces 20 units, what is the total \cost?
A. ₦500
B. ₦600
C. ₦700
D. ₦800
Question 12
A country's GDP is 100 billion naira. If the country's GNP is 120 billion naira, what is the net factor income from abroad?
A. 10 billion naira
B. 20 billion naira
C. 30 billion naira
D. 40 billion naira
Question 13
A country's GDP is ₦1,000,000,000,000. If the country's net factor income from abroad is ₦50,000,000,000, what is the country's GNP?
A. ₦1,050,000,000,000
B. ₦1,050,000,000,000
C. ₦1,050,000,000,000
D. ₦1,050,000,000,000
Question 14
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 100, what is its marginal \cost (MC)?
A. 50
B. 75
C. 100
D. 125
Question 15
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 5 units of the good, what is the total \cost of production?
A. ₦125
B. ₦150
C. ₦175
D. ₦200

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