POST UTME BABCOCK UNIVERSITY 2021 Economics | Objective

Are you preparing for POST UTME BABCOCK UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1

The government of Nigeria has implemented a policy to increase the production of rice through the use of irrigation systems. However, the policy has been criticized for its potential impact on the environment. Which of the following is a potential opportunity \cost of this policy?

A. Increased food production

Correct B. Loss of biodiversity

C. Increased water pollution

D. Decreased rice prices

Correct Answer: B

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Question 2

A monopolist produces a good with a demand curve given by \( Q = 100 - 2P \) and a \cost function given by ( C(Q) = 10Q + 100 ). Find the profit-maximizing price and quantity.

Correct A. \( P = 50, Q = 25 \)

B. \( P = 75, Q = 20 \)

C. \( P = 100, Q = 50 \)

D. \( P = 120, Q = 60 \)

Correct Answer: A

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Question 3

A government budget is given by the equation \( B = 1000 + 0.2Y \), where ( Y ) is the national income. If the national income is \( Y = 5000 \), what is the government budget?

A. ₦1500

Correct B. ₦2000

C. ₦2500

D. ₦3000

Correct Answer: B

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Question 4

A farmer has 100 hectares of land and can grow either wheat or maize. The revenue from growing wheat is given by \( R_w = 1000Q_w - 2Q_w^2 \) and the revenue from growing maize is given by \( R_m = 800Q_m - Q_m^2 \). If the farmer can grow either crop, which crop should he grow to maximize his revenue?

Correct A. Wheat

B. Maize

C. Either crop

D. Neither crop

Correct Answer: A

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Question 5

A monopolist faces a demand curve given by \( Q = 100 - 2P \) and a \cost function given by ( C(Q) = 10Q + 100 ). If the monopolist produces 20 units of the good, what is the profit?

A. ₦1000

B. ₦1200

Correct C. ₦1500

D. ₦1800

Correct Answer: C

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