POST UTME BELLS UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's utility function is given by U = 2x + 3y, where U is utility, x is the quantity of good x, and y is the quantity of good y. If the consumer's budget is ₦1,000 and the prices of good x and good y are ₦100 and ₦200 respectively, what is the value of the consumer's utility?
A. 100
B. 200
C. 300
D. 400
Question 2
A firm's production function is given by \( Q = 2L + 3K \), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input is 10 units and its capital input is 5 units, what is the quantity produced?
A. 20
B. 25
C. 30
D. 35
Question 3
A firm's production function is given by the equation \( Q = 2L + 3K \). If the firm's output is 100 units, labor is 20 units, and capital is 30 units, what is the firm's marginal product of labor?
A. 2
B. 3
C. 4
D. 5
Question 4
A Nigerian firm is considering investing in a new project. The project has a fixed \cost of ₦50 million and a variable \cost of ₦20 per unit produced. The firm expects to sell 10,000 units at a price of ₦50 per unit. What is the minimum rate of return on investment required for the firm to accept the project?
A. 10%
B. 15%
C. 20%
D. 25%
Question 5
A country's agricultural sector is given by the following equation: \( A = 2P + 3I \). If the country's agricultural output is 100 units, price is ₦5, and investment is ₦10, what is the country's marginal product of investment?
A. 2
B. 3
C. 4
D. 5
Question 6
A government's budget can be classified into three main categories: revenue, exp\enditure, and net l\ending. Which of the following is NOT a component of the government's revenue?
A. Taxes
B. Grants
C. Fines
D. Interest on loans
Question 7
A country's economic growth is often hindered by the scarcity of resources. Which of the following is a correct example of an opportunity \cost in this scenario?
A. The \cost of importing goods from another country
B. The \cost of investing in renewable energy
C. The \cost of producing a good that could have been produced with the same resources
D. The \cost of hiring more workers
Question 8
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
A. (200, 100)
B. (150, 150)
C. (100, 200)
D. (50, 250)
Question 9
A country's agricultural sector is given by the following supply and demand curves: ( S(p) = 100 - 2p ) and ( D(p) = 50 + 3p ). If the price of the agricultural product is ₦10, what is the quantity supplied?
A. 50
B. 60
C. 70
D. 80
Question 10
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 100 and 400 respectively, what is the value of the firm's output?
A. 100
B. 200
C. 400
D. 800
Question 11
A country's balance of payments is given by the following equation: \( BOP = \( X - M \ \) + \( F - I \) ). If the country's exports are ₦500 billion, imports are ₦400 billion, foreign investment is ₦200 billion, and domestic investment is ₦300 billion, what is the country's balance of payments?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 12
A country's balance of payments (BOP) accounts can be classified into three main categories: current account, capital account, and financial account. Which of the following is NOT a component of the current account?
A. Exports of goods and services
B. Imports of goods and services
C. Net factor income from abroad
D. Net capital outflows
Question 13
A firm's 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 labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
A firm's \cost function is given by the equation \( C = 2L + 3K \). If the firm's labor is 20 units and capital is 30 units, what is the firm's total \cost?
A. 100
B. 200
C. 300
D. 400
Question 15
A country's balance of payments is given by the following 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 ₦700 billion, what is the country's balance of payments?
A. ₦-200 billion
B. ₦200 billion
C. ₦500 billion
D. ₦700 billion

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