POST UTME BABCOCK UNIVERSITY 2018 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 effect of an increase in foreign investment on the balance of payments?
A. The current account surplus increases.
B. The current account deficit increases.
C. The capital account surplus increases.
D. The balance of payments is in equilibrium.
Question 2
Suppose the demand for a product is given by Qd = 100 - 2P and the supply is given by Qs = 2P. If the price is initially set at ₦10, what is the equilibrium quantity?
A. 20
B. 30
C. 40
D. 50
Question 3
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 10%
C. 5%
D. 15%
Question 4
Suppose the demand function for a commodity is given by Q = 100 - 2P and the supply function is given by Q = 2P + 10. Find the equilibrium price and quantity.
A. ₦50, 50 units
B. ₦75, 75 units
C. ₦100, 100 units
D. ₦125, 125 units
Question 5
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm is producing at its profit-maximizing level of output, what is the implication of this intersection point on the firm's short-run production decision?
A. The firm will increase its production level to take advantage of the higher price.
B. The firm will decrease its production level to reduce \costs.
C. The firm will maintain its current production level.
D. The firm will exit the market.
Question 6
The supply curve shifts to the right when there is an increase in the
A. price of the good
B. price of a complementary good
C. price of a substitute good
D. techno\logy
Question 7
A country's balance of payments is given by the following equation: BOP = X - M, where 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. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 8
A firm's demand for labor is given by L = 100 - 2P_L, where P_L is the wage rate. If the wage rate increases by 10%, what is the percentage change in labor demand?
A. -5%
B. -10%
C. 0%
D. 5%
Question 9
A consumer's indifference curve is represented by the equation u(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦100 and the prices of the two goods are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of goods?
A. (10, 10)
B. (15, 5)
C. (20, 0)
D. (0, 20)
Question 10
The demand function for a commodity is given by Q = 100 - 2P and the supply function is given by Q = 2P + 10. If the government imposes a tax of ₦20 per unit on the commodity, find the new equilibrium price and quantity, assuming that the tax is passed on to the consumer.
A. ₦60, 60 units
B. ₦80, 80 units
C. ₦100, 100 units
D. ₦120, 120 units
Question 11
Agricultural development in Nigeria has been hindered by the lack of
A. adequate funding
B. modern techno\logy
C. skilled labor
D. all of the above
Question 12
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production function for good X is given by QX = 10L^0.5K^0.5, and the production function for good Y is given by QY = 5L^0.2K^0.8. If the firm has 100 units of labor and 50 units of capital, how many units of good X and good Y should the firm produce to maximize profits?
A. QX = 50, QY = 25
B. QX = 75, QY = 30
C. QX = 25, QY = 50
D. QX = 30, QY = 75
Question 13
A firm's \cost function is given by C = 100 + 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm increases labor from 50 to 60 units and capital from 50 to 60 units, what is the percentage change in \cost?
A. 10%
B. 20%
C. 30%
D. 40%
Question 14
A government imposes a tax of ₦10 on a good that is sold at ₦50. What is the new price of the good?
A. ₦60
B. ₦70
C. ₦80
D. ₦90
Question 15
A firm produces two products, A and B. The production of A requires 2 hours of labor and 1 hour of capital, while the production of B requires 1 hour of labor and 2 hours of capital. If the firm has 10 hours of labor and 10 hours of capital available, and the prices of A and B are ₦100 and ₦200 respectively, find the optimal production levels of A and B, assuming that the firm's objective is to maximize profit, and that the firm can sell the products at the prices of ₦120 and ₦250 respectively.
A. A = 5 units, B = 5 units
B. A = 10 units, B = 0 units
C. A = 0 units, B = 10 units
D. A = 5 units, B = 10 units

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