POST UTME BABCOCK UNIVERSITY 2022 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's marginal revenue (MR) is 50, what is its price?
Question 2
The government of Nigeria has introduced a new policy to encourage agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision that requires farmers to sell their produce to the government at a fixed price. Which of the following is a potential consequence of this policy?
Question 3
A consumer's indifference curves are given by the equation u(x, y) = x^0.5y^0.5. If the consumer's initial \endowment is (x0, y0) = (4, 9), what is the consumer's optimal bundle?
Question 4
A monopolist faces a demand curve with the following equation: Q = 100 - 2P. If the firm's marginal \cost is 10, what is the profit-maximizing price?
Question 5
A firm is operating in a perfectly competitive market with a cons\tant returns to scale production function. If the market price of its product increases by 10%, what will be the percentage change in the firm's total revenue?
Question 6
A firm is operating on a long-run average \cost curve. If it increases its output from 100 units to 200 units, what happens to its average \cost per unit?
Question 7
A consumer's indifference curves are given by the equation u(x, y) = x^0.5y^0.5. If the consumer's initial \endowment is (x0, y0) = (4, 9), what is the consumer's optimal bundle?
Question 8
A country has a production function Y = 2L^0.5K^0.5. If the price of labor is ₦10 and the price of capital is ₦20, what is the optimal combination of labor and capital?
Question 9
A firm has the following \cost function: TC = 100 + 2Q + 0.5Q^2. If the firm produces 50 units of output, what is its total \cost?
Question 10
The government of Nigeria has implemented a policy to increase the production of rice. The supply function for rice is given by Qs = 100 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 0.8, what is the percentage change in quantity supplied when the price increases by 15%?
Question 11
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the value of MP_L when L = 4 and K = 9?
Question 12
A firm is considering two different pricing strategies for a commodity. Strategy A involves charging a price of ₦100 per unit, while Strategy B involves charging a price of ₦120 per unit. If the demand for the commodity is elastic, which strategy will result in a higher revenue?
Question 13
A country's GDP is given by the equation GDP = 1000 + 2Y + 3X, where Y is the country's consumption and X is the country's investment. If the country's consumption is 500 and its investment is 200, what is its GDP?
Question 14
The Nigerian economy has experienced a period of rapid growth, resulting in an increase in the s\tandard of living for many citizens. However, this growth has also led to an increase in income inequality. Which of the following is a potential consequence of this growth?
Question 15
A firm is operating on a production function with the following equation: Q = 2L^0.5K^0.5. If the firm increases its labor from 4 units to 6 units, what happens to its output?
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