POST UTME BELLS UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a \cost function given by C = 100 + 2Q, where C is the total \cost and Q is the quantity produced. If the firm produces 50 units, find the total revenue.
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 2
A firm is facing a downward-sloping demand curve with a cons\tant elasticity of -1.5. If the firm's marginal revenue (MR) is 120, and its marginal \cost (MC) is 100, what is the firm's optimal price level?
A. ₦1,000
B. ₦1,200
C. ₦1,500
D. ₦2,000
Question 3
The government of a country imposes a tax on a particular commodity. The supply function for the commodity is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the tax is ₦20 per unit, find the price at which the quantity supplied is 120 units.
A. ₦60
B. ₦80
C. ₦100
D. ₦120
Question 4
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $30 billion, exports are $40 billion, and imports are $20 billion, what is the country's trade balance?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 5
The production function is given by Q = 100K^\( 1/2 \)L^\( 1/2 \). If the scale of production is increased by a factor of 4, what is the new production function?
A. Q = 400K^\( 1/2 \)L^\( 1/2 \)
B. Q = 100K^\( 1/2 \)L^\( 1/2 \)
C. Q = 200K^\( 1/2 \)L^\( 1/2 \)
D. Q = 50K^\( 1/2 \)L^\( 1/2 \)
Question 6
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 cons\tant and equal to 2, what is the price elasticity of supply?
A. 2
B. -2
C. 4
D. -4
Question 7
A firm produces two products, A and B. The production function for product A is given by Q_A = 10L + 5K, where L is the labor input and K is the capital input. The production function for product B is given by Q_B = 8L + 3K. If the firm has 20 units of labor and 15 units of capital, find the total output of the firm.
A. 250
B. 300
C. 350
D. 400
Question 8
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 100, and its marginal \cost (MC) is 80, what is the firm's optimal output level?
A. 100 units
B. 120 units
C. 150 units
D. 200 units
Question 9
A firm's demand function is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply function is given by Qs = 2P - 50, where Qs is the quantity supplied, find the elasticity of demand at the equilibrium price.
A. 0.5
B. 1
C. 2
D. 3
Question 10
A monopolistically competitive firm faces a demand curve with an elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?
A. -20%
B. -15%
C. -12%
D. -10%
Question 11
The government of a country has set a target of increa\sing the GDP by 10% within the next 5 years. If the current GDP is ₦100 billion, what is the new GDP target?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 12
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, find the price at which the quantity demanded is 60 units.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 13
The government of a country imposes a tax on a particular commodity. The demand function for the commodity is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the tax is ₦20 per unit, find the price at which the quantity demanded is 60 units.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 14
A firm has a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm increases labor by 20% and capital by 15%, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 15
A consumer has a budget of ₦10,000 and faces the following price and quantity combinations for two goods: Good X: ₦2,000 per unit, Good Y: ₦3,000 per unit. If the consumer's indifference curves are convex to the origin, what is the optimal combination of goods X and Y?
A. Buy 2 units of Good X and 1 unit of Good Y
B. Buy 3 units of Good X and 0 units of Good Y
C. Buy 1 unit of Good X and 2 units of Good Y
D. Buy 0 units of Good X and 3 units of Good Y

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