POST UTME BABCOCK UNIVERSITY 2025 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
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 2
A firm's revenue function is given by R(q) = 10q - 2q^2. If the firm produces 15 units of output, what is the marginal revenue?
Question 3
A country is experiencing an economic downturn, and the government is considering implementing a fiscal policy to stimulate the economy. Which of the following fiscal policies would be most effective in stimulating the economy?
Question 4
A country's balance of payments is in equilibrium when the current account and capital account are equal. If the current account is a deficit of ₦100 billion and the capital account is a surplus of ₦150 billion, what is the balance of payments?
Question 5
The Central Bank of Nigeria (CBN) uses monetary policy tools to control inflation. Which of the following tools is most effective in reducing inflation in the short run?
Question 6
Consider a firm that produces a \single product u\sing labor and capital. The production function is given by \( Q = 2L^0.5K^0.5 \), where ( Q ) is output, ( L ) is labor, and ( K ) is capital. If the firm's revenue function is \( R = 100Q \) and the \cost function is \( C = 20L + 10K \), what is the firm's profit-maximizing level of capital?
Question 7
The concept of diminishing marginal utility is closely related to the law of
Question 8
The concept of scarcity is closely related to the
Question 9
A firm is operating in a monopoly market. If the firm's marginal revenue (MR) is less than its marginal \cost (MC), what will happen to the firm's output?
Question 10
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units of output, what is the total \cost?
Question 11
A firm is considering investing in a new project. The project has a \cost of $100,000 and is expected to generate a revenue of $150,000. What is the net present value (NPV) of the project?
Question 12
A country's supply function is given by Q = 100 + 2P, where Q is quantity supplied and P is price. If the country's price increases by 20%, what is the percentage change in quantity supplied?
Question 13
The concept of diminishing marginal utility is closely related to the
Question 14
A firm operates in a perfectly competitive market with a demand function Q = 100 - 2P and a supply function Q = 100 + 2P. If the firm's price increases by 20%, what is the new equilibrium price?
Question 15
A country's agricultural sector is characterized by a high degree of price elasticity of supply. What is the likely effect of a price increase on the quantity supplied?
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