POST UTME BELLS UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's supply function is given by Q = 2P + 50, what is the equilibrium price and quantity?
A. (₦25, 75)
B. (₦50, 100)
C. (₦75, 125)
D. (₦100, 150)
Question 2
The money supply in a country is given by the equation M = 1000 + 0.5Y. If the money supply is currently ₦5000, what is the level of income?
A. ₦10000
B. ₦5000
C. ₦2000
D. ₦1000
Question 3
The concept of scarcity implies that the production of one good is at the expense of another. What is the opportunity \cost of producing more of a particular good?
A. The value of the next best alternative good
B. The price of the good being produced
C. The quantity of the good being produced
D. The income of the consumer
Question 4
A firm has a production function given by \( Q = 2L^2 \), where (L) is the quantity of labor employed. If the wage rate is \( W = 10 \), and the firm's revenue function is given by \( R = 100Q \), what is the firm's profit-maximizing level of labor employment?
A. \( L = 5 \)
B. \( L = 10 \)
C. \( L = 15 \)
D. \( L = 20 \)
Question 5
A consumer has a budget of ₦1000 and faces the following prices for two goods: good X \costs ₦200 and good Y \costs ₦300. If the consumer's utility function is given by U = 2X + 3Y, where U is the utility level and X and Y are the quantities of goods X and Y consumed, respectively, how much of good X should the consumer buy?
A. 2
B. 3
C. 4
D. 5
Question 6
A farmer in Nigeria faces a trade-off between producing more maize or yams. If the opportunity \cost of producing one more unit of maize is 3 units of yams, and the opportunity \cost of producing one more unit of yams is 2 units of maize, what is the opportunity \cost of producing one more unit of maize?
A. 2
B. 3
C. 4
D. 5
Question 7
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (20, 10)
B. (30, 5)
C. (40, 0)
D. (0, 100)
Question 8
The marginal propensity to consume (MPC) is the change in consumption when income changes by one unit. If the MPC is 0.8, what is the change in consumption when income increases by ₦100?
A. ₦80
B. ₦120
C. ₦160
D. ₦200
Question 9
A country's GDP at market price is ₦100 billion. If the GDP deflator is 120, what is the GDP at cons\tant price?
A. ₦83.33 billion
B. ₦83.33 billion
C. ₦83.33 billion
D. ₦83.33 billion
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) and capital (K) both increase by 25%, what is the percentage change in output (Q)?
A. 25%
B. 50%
C. 75%
D. 100%
Question 11
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $25 billion. What is its GDP at market price?
A. $105 billion
B. $110 billion
C. $115 billion
D. $120 billion
Question 12
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 13
A consumer has a budget of ₦1000 and faces the following prices for two goods: Good X \costs ₦200 and Good Y \costs ₦300. If the consumer buys 2 units of Good X, what is the opportunity \cost of buying 1 unit of Good Y?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 14
A country's GDP at market price is ₦100 billion. If the GDP deflator is 120, what is the GDP at cons\tant price?
A. ₦83.33 billion
B. ₦83.33 billion
C. ₦83.33 billion
D. ₦83.33 billion
Question 15
A country's balance of payments (BOP) is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are ₦500 billion and its imports are ₦600 billion, what is the country's BOP?
A. ₦-100 billion
B. ₦0
C. ₦100 billion
D. ₦200 billion

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