POST UTME BABCOCK UNIVERSITY 2024 Economics | Objective

Prepare for your exams with POST UTME BABCOCK UNIVERSITY questions? Reviewing past/model questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1 View Details
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
Correct B. 12%
C. 15%
D. 18%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2 View Details
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are prices, Q1 and Q2 are quantities, and I is income. If the consumer's income increases by 10% and the prices of goods 1 and 2 increase by 5% and 8% respectively, what is the new budget constraint equation?
Correct A. P1Q1 + 1.08P2Q2 = 1.1I
B. P1Q1 + 1.05P2Q2 = 1.1I
C. P1Q1 + 1.08P2Q2 = 1.05I
D. P1Q1 + 1.05P2Q2 = 1.08I

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3 View Details
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's labor and capital are increased by 20% and 15% respectively, what is the new \cost function equation?
Correct A. C = 100 + 2.4L + 3.45K
B. C = 100 + 2.4L + 3.15K
C. C = 100 + 2.2L + 3.45K
D. C = 100 + 2.2L + 3.15K

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4 View Details
A consumer's indifference curve is given by U = 2X + 3Y, where U is utility, X is quantity of good 1, and Y is quantity of good 2. If the consumer's income increases by 10% and the prices of goods 1 and 2 increase by 5% and 8% respectively, what is the new indifference curve equation?
Correct A. U = 2.2X + 3.24Y
B. U = 2.2X + 3.12Y
C. U = 2X + 3.24Y
D. U = 2X + 3.12Y

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5 View Details
A firm's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is quantity. If the firm increases its price by 10% and the quantity sold increases by 20%, what is the new revenue function equation?
Correct A. R = 110Q - 2.4Q^2
B. R = 110Q - 2.2Q^2
C. R = 100Q - 2.4Q^2
D. R = 100Q - 2.2Q^2

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, find the number of machines (K) required.
A. 4
B. 6
Correct C. 8
D. 10

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7 View Details
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the optimal quantities of x and y.
Correct A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8 View Details
A firm's \cost function is given by C = 2L + 3K. If the firm's current \cost is ₦1500 and the number of workers (L) is 3, find the number of machines (K) required.
A. 4
Correct B. 6
C. 8
D. 10

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9 View Details
A consumer's budget constraint is given by 2x + 3y = 1000. If the consumer's utility function is U = 2x + 3y, find the optimal quantities of x and y.
Correct A. x = 200, y = 200
B. x = 150, y = 250
C. x = 100, y = 300
D. x = 50, y = 350

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, find the number of machines (K) required.
A. 4
B. 6
Correct C. 8
D. 10

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11 View Details
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will happen to the firm's output?
Correct A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12 View Details
A country's balance of payments (BOP) accounts can be in equilibrium even if its current account is not in equilibrium. Explain.
A. The country is experiencing a trade deficit.
B. The country is experiencing a trade surplus.
Correct C. The country's capital account is offsetting the current account deficit.
D. The country's current account is in equilibrium.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13 View Details
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is 20, what is its marginal \cost (MC)?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14 View Details
A country's GDP is 100 billion naira. If its government sp\ends 20 billion naira on infrastructure, what is its GNP?
Correct A. 120 billion naira
B. 110 billion naira
C. 100 billion naira
D. 90 billion naira

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15 View Details
A firm's elasticity of demand is 0.5. If the price of its product increases by 10%, what will happen to its revenue?
A. Increase by 5%
Correct B. Decrease by 5%
C. Increase by 10%
D. Decrease by 10%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16 View Details
A firm is operating in a perfectly competitive market with a demand curve given by Qd = 100 - 2P and a supply curve given by Qs = 2P. Find the equilibrium price and quantity.
Correct A. ₦50, 50 units
B. ₦75, 25 units
C. ₦100, 0 units
D. ₦200, 100 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17 View Details
A country's balance of payments is given by the following equation: BOP = X - M - \( I - S \). If the country's exports (X) are ₦100 billion, imports (M) are ₦80 billion, and the difference between investment (I) and saving (S) is ₦20 billion, what is the balance of payments?
Correct A. ₦20 billion surplus
B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18 View Details
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 2P. Find the price and quantity at which the monopolist maximizes profit.
Correct A. ₦75, 25 units
B. ₦50, 50 units
C. ₦25, 75 units
D. ₦0, 100 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19 View Details
A firm's demand curve is given by Qd = 100 - 2P and its supply curve is given by Qs = 2P. If the firm's elasticity of demand is 2 and the price is ₦50, what is the quantity demanded?
Correct A. 50 units
B. 25 units
C. 75 units
D. 100 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20 View Details
A country's GDP is ₦100 billion, its imports are ₦80 billion, and its exports are ₦60 billion. What is its balance of trade?
Correct A. ₦20 billion deficit
B. ₦20 billion surplus
C. ₦40 billion deficit
D. ₦40 billion surplus

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21 View Details
A firm's demand curve is given by Qd = 100 - 2P and its supply curve is given by Qs = 2P. If the firm's elasticity of supply is 2 and the price is ₦50, what is the quantity supplied?
Correct A. 50 units
B. 25 units
C. 75 units
D. 100 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22 View Details
A country's GNP is ₦120 billion, its imports are ₦80 billion, and its exports are ₦60 billion. What is its balance of trade?
Correct A. ₦20 billion deficit
B. ₦20 billion surplus
C. ₦40 billion deficit
D. ₦40 billion surplus

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23 View Details
A firm's demand curve is given by Qd = 100 - 2P and its supply curve is given by Qs = 2P. If the firm's elasticity of demand is 2 and the price is ₦75, what is the quantity demanded?
Correct A. 25 units
B. 50 units
C. 75 units
D. 100 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24 View Details
A country's GDP is ₦100 billion, its imports are ₦80 billion, and its exports are ₦60 billion. What is its balance of trade?
Correct A. ₦20 billion deficit
B. ₦20 billion surplus
C. ₦40 billion deficit
D. ₦40 billion surplus

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25 View Details
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price and quantity?
A. P = 50, Q = 25
Correct B. P = 40, Q = 30
C. P = 60, Q = 20
D. P = 70, Q = 15

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support