POST UTME BABCOCK UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government of a country wants to increase its national income by 10% in a year. If the current national income is ₦100 billion, what is the required increase in the national income?
A. ₦10 billion
B. ₦11 billion
C. ₦12 billion
D. ₦13 billion
Question 2
A country's balance of payments (BOP) accounts are in equilibrium when the current account (CA) is equal to the capital account (KA). If the country's CA is in surplus by $100 million, and the KA is in deficit by $50 million, what is the net effect on the country's BOP?
A. The BOP is in surplus by $50 million
B. The BOP is in deficit by $50 million
C. The BOP is in equilibrium
D. The BOP is in surplus by $150 million
Question 3
The production function for a firm is given by Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the firm increases its labor by 20% and its capital by 15%, what is the new output?
A. 10
B. 12
C. 15
D. 18
Question 4
A consumer's indifference curve is given by U(x, y) = 2x + 3y. The budget constraint is 2x + 3y = 12. Find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 3, y = 3
D. x = 1, y = 5
Question 5
A consumer is faced with the following budget constraint: 2X + 3Y = 12. If the consumer's indifference curve is downward sloping, what is the opportunity \cost of consuming one more unit of good X?
A. The opportunity \cost of consuming one more unit of good X is the amount of good Y that must be given up.
B. The opportunity \cost of consuming one more unit of good X is the amount of good X that must be given up.
C. The opportunity \cost of consuming one more unit of good X is the amount of good Z that must be given up.
D. The opportunity \cost of consuming one more unit of good X is the amount of good X that must be consumed.
Question 6
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the optimal bundle of x and y?
A. (10, 20)
B. (20, 10)
C. (15, 15)
D. (5, 5)
Question 7
The production function for a firm is given by Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the firm increases its labor by 20% and its capital by 15%, what is the new output?
A. 10
B. 12
C. 15
D. 18
Question 8
The demand for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is $20, how many units of the product will be demanded?
A. 50
B. 75
C. 100
D. 125
Question 9
A country's inflation rate is 5% per annum, and its nominal interest rate is 10% per annum. If the country's central bank implements a monetary policy that reduces the money supply by 10%, what is the expected effect on the country's real interest rate?
A. The real interest rate increases by 5%
B. The real interest rate decreases by 5%
C. The real interest rate remains unchanged
D. The real interest rate increases by 10%
Question 10
A firm produces two products, A and B, u\sing two inputs, labor and capital. The production function for product A is given by Q_A = 2L^0.5K^0.5, and the production function for product B is given by Q_B = 3L^0.75K^0.25. If the firm has 100 units of labor and 50 units of capital, how many units of product A and product B should the firm produce to maximize profit?
A. Q_A = 20, Q_B = 30
B. Q_A = 30, Q_B = 20
C. Q_A = 25, Q_B = 25
D. Q_A = 15, Q_B = 35
Question 11
A consumer has a utility function given by U = 2x^0.5y^0.5, where x and y are the quantities of two goods. If the prices of the two goods are $5 and $10, respectively, and the consumer has a budget of $50, how much of each good should the consumer buy to maximize utility?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 3, y = 15
Question 12
A firm's production function is given by Q = 2L + 3K. The \cost of labor is ₦50 per unit and the \cost of capital is ₦100 per unit. If the firm produces 20 units of output, what is the total \cost of production?
A. ₦1500
B. ₦2000
C. ₦2500
D. ₦3000
Question 13
A consumer's utility function is given by U(x, y) = 2x + 3y. The budget constraint is 2x + 3y = 12. Find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 3, y = 3
D. x = 1, y = 5
Question 14
Consider a country with a GDP of ₦10 trillion and a GNP of ₦12 trillion. If the country's population is 200 million, what is the per capita GDP?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 15
A monopolist is facing a downward-sloping demand curve. If the monopolist's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the monopolist's optimal output?
A. The monopolist will produce at the point where MR = MC.
B. The monopolist will produce at the point where MR > MC.
C. The monopolist will produce at the point where MR < MC.
D. The monopolist will produce at the point where MR = MC and MC is at its minimum.

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