POST UTME BABCOCK UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The balance of payments accounts for a country are given below:\n\nCurrent Account: ₦100 billion\nCapital Account: ₦50 billion\nFinancial Account: ₦20 billion\nErrors and Omissions: ₦10 billion\nWhat is the value of the trade balance?
Question 2
A firm's total revenue function is given by TR = 100Q - 2Q^2, where TR is total revenue and Q is quantity sold. If the firm sells 10 units, calculate the marginal revenue (MR).
Question 3
The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied when the price increases by 15%?
Question 4
Calculate the marginal propensity to consume (MPC) if the consumption function is given by C = 100 + 0.5Y and the marginal propensity to save (MPS) is 0.2.
Question 5
The supply of a product is given by the equation Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 0.2, find the price at which the quantity supplied is 20 units.
Question 6
A firm has a revenue function R = 1000 + 20Q - 0.1Q^2, where Q is the quantity sold. Determine the level of output that maximizes revenue.
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 percentage change in quantity demanded when the price increases by 10%?
Question 8
A consumer's budget constraint is given by the equation I = 100 - 2C, where I is the income and C is the consumption. If the consumer's indifference curve is given by the equation U = 2C, find the consumer's optimal consumption and income.
Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's current price is ₦50, calculate the elasticity of demand.
Question 10
A firm is considering two investment projects. Project A has a net present value (NPV) of ₦100 million and a payback period of 5 years. Project B has an NPV of ₦120 million and a payback period of 4 years. Which project should the firm choose?
Question 11
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 100 units and 400 units respectively, calculate the marginal product of labor (MPL).
Question 12
A firm's production function is given by Q = 100K^0.5L^0.5, where Q is the output, K is the capital and L is the labor. If the firm wants to increase its output by 20% and the labor is increased by 10%, what is the percentage change in capital?
Question 13
A country's economic growth rate is 5% per annum, and its population growth rate is 2% per annum. What is the rate of growth of per capita income?
Question 14
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's trade balance is in surplus by ₦100 billion and the current account is in deficit by ₦50 billion, what is the value of the capital account?
Question 15
A monopolist's demand function is given by Q = 100 - 2P. If the firm's marginal revenue function is MR = 200 - 2Q, what is the firm's optimal price?
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