POST UTME BABCOCK UNIVERSITY 2017 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's supply curve is given by Q = 2P - 100 and its demand curve is given by Q = 200 - 2P. Find the firm's consumer surplus at an equilibrium price of ₦100.
Question 2
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 - 100, where Qs is the quantity supplied, find the equilibrium price and quantity.
Question 3
A firm is considering two production techno\logies: one that requires an initial investment of ₦100 million and produces 100 units of output per year, and another that requires an initial investment of ₦150 million and produces 120 units of output per year. If the firm's objective is to maximize profits, which techno\logy should it choose?
Question 4
A central bank uses monetary policy to control inflation by adjusting the money supply. If the central bank increases the money supply by 10%, what is the expected effect on the price level?
Question 5
The government of a country is considering a policy to reduce inflation. The policy involves reducing the money supply by 10%. If the current money supply is ₦100 billion, what will be the new money supply?
Question 6
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is the consumption, I is the investment, G is the government sp\ending, X is the exports and M is the imports. If the country's consumption is ₦100 billion, investment is ₦20 billion, government sp\ending is ₦30 billion, exports are ₦50 billion and imports are ₦20 billion, find the GDP.
Question 7
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 price at which the quantity demanded is 50?
Question 8
A country's inflation rate is 5% per annum. If the country's central bank sets a monetary policy target of 2% inflation, what is the maximum amount of money that the central bank can print per year without cau\sing inflation to exceed the target?
Question 9
A firm produces two goods, X and Y. The production function for good X is given by X = 2L + 3K, where L is labor and K is capital. The production function for good Y is given by Y = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the total output of the firm?
Question 10
A country's balance of payments (BOP) is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period. Which of the following is NOT a component of the BOP?
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
Question 12
A country's balance of payments account shows a trade deficit of ₦500 billion. However, the country also has a surplus of ₦200 billion in its services account. What is the overall balance of payments position of the country?
Question 13
Suppose a government imposes a tax of ₦100 on every unit of a good. If the supply curve is given by Q = 2P - 100 and the demand curve is given by Q = 200 - 2P, what is the new equilibrium price and quantity?
Question 14
A country's inflation rate is given by the equation π = \( P - P^* \) / P^*, where P is the current price level and P^* is the equilibrium price level. If the current price level is ₦100 and the equilibrium price level is ₦90, what is the country's inflation rate?
Question 15
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is ₦50 and the firm's marginal \cost (MC) is ₦40, what is the firm's optimal price?
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.
Unlock Full Access
Available for Android & Windows