POST UTME BELLS UNIVERSITY 2024 Economics | Objective

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Question 1
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, and the prices of the two goods are p_x = 2 and p_y = 3, respectively, what is the consumer's optimal bundle of goods?
A. ( (x, y) = (3, 2) )
B. ( (x, y) = (2, 3) )
C. ( (x, y) = (4, 1) )
D. ( (x, y) = (1, 4) )
Question 2
A central bank increases the money supply by 10%. What will be the effect on the price level, assuming a cons\tant velocity of money?
A. No effect
B. Increase of 5%
C. Increase of 10%
D. Increase of 15%
Question 3
A firm's demand function for a particular input is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's supply function is given by Q = 2P + 50, what is the equilibrium price and quantity?
A. ( (P, Q) = (25, 50) )
B. ( (P, Q) = (50, 25) )
C. ( (P, Q) = (75, 25) )
D. ( (P, Q) = (25, 75) )
Question 4
A firm is facing a trade-off between \cost minimization and revenue maximization. If the firm's \cost function is C(q) = 2q^2 + 10q and the revenue function is R(q) = 3q^2 - 2q, what is the optimal quantity to produce?
A. q = 1
B. q = 2
C. q = 3
D. q = 4
Question 5
A consumer's utility function is given by U = 2X + 3Y. If the consumer's income is ₦1000 and the prices of the two goods are ₦2 and ₦3 respectively, what will be the consumer's optimal bundle?
A. X = 200, Y = 100
B. X = 150, Y = 150
C. X = 100, Y = 200
D. X = 50, Y = 250
Question 6
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's current labor and capital inputs are 16 and 9 units respectively, what is the firm's current output?
A. 32
B. 64
C. 128
D. 256
Question 7
A firm's demand function is given by Q = 100 - 2P. If the price of the good is increased by 20%, what will be the effect on the firm's output?
A. Output will increase by 20%
B. Output will decrease by 20%
C. Output will remain the same
D. Output will fluctuate
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor?
A. 1/2
B. 1/4
C. 1/8
D. 1/16
Question 9
A country's GDP grows at a rate of 5% per annum, while its population grows at a rate of 2% per annum. What is the rate of growth of per capita income?
A. 3%
B. 4%
C. 5%
D. 6%
Question 10
A firm is considering two investment projects. Project A has a 5-year payback period and an internal rate of return (IRR) of 12%. Project B has a 7-year payback period and an IRR of 15%. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 11
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, and the prices of the two goods are p_x = 2 and p_y = 3, respectively, what is the consumer's optimal bundle of goods?
A. ( (x, y) = (3, 2) )
B. ( (x, y) = (2, 3) )
C. ( (x, y) = (4, 1) )
D. ( (x, y) = (1, 4) )
Question 12
Determine the returns to scale for a firm that experiences a 20% increase in all inputs, resulting in a 25% increase in output.
A. Decrea\sing Returns to Scale
B. Increa\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale
Question 13
The government of a country imposes a tax on luxury goods to reduce consumption. If the demand for luxury goods is elastic, what will be the effect on government revenue?
A. Government revenue will increase
B. Government revenue will decrease
C. Government revenue will remain the same
D. Government revenue will fluctuate
Question 14
The following table shows the production possibilities frontier for a country:
A. Opportunity Cost of Producing 100 units of Good X is 50 units of Good Y
B. Opportunity Cost of Producing 50 units of Good X is 25 units of Good Y
C. Opportunity Cost of Producing 200 units of Good X is 100 units of Good Y
D. Opportunity Cost of Producing 75 units of Good X is 37.5 units of Good Y
Question 15
A firm's demand for labor is given by the equation Q = 100L^0.5, where Q is the quantity of labor demanded and L is the wage rate. If the wage rate is ₦50 per hour, how many hours of labor will be demanded?
A. 10 hours
B. 20 hours
C. 30 hours
D. 40 hours

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