POST UTME BOWEN UNIVERSITY 2018 Economics | Objective

Are you preparing for POST UTME BOWEN UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The money multiplier is a concept used in the money creation process. It is calculated as the reciprocal of the reserve requirement ratio. If the reserve requirement ratio is 0.2, what is the money multiplier?
Correct A. 5
B. 10
C. 20
D. 50

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 10 units of output, what is its total \cost?
A. 150
B. 200
Correct C. 250
D. 300

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer has a budget of ₦100 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. (10,20)
Correct B. (15,15)
C. (20,10)
D. (25,5)

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A firm's revenue function is given by R(q) = 20q - 0.5q^2. If the firm produces 10 units of output, what is its marginal revenue?
A. 200
Correct B. 250
C. 300
D. 350

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, what is the country's GDP?
A. 1,500,000,000,000
B. 1,600,000,000,000
Correct C. 1,700,000,000,000
D. 1,800,000,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
The government of Nigeria has introduced a new policy to encourage the growth of the agricultural sector. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision that requires farmers to sell a certain percentage of their produce to the government at a fixed price. This provision is int\ended to stabilize food prices and ensure a steady supply of food to the market. However, it may also lead to a decrease in the incentives for farmers to produce more, as they will be forced to sell a portion of their produce at a price that may be lower than the market price. What is the likely effect of this policy on the agricultural sector?
A. The policy will lead to an increase in food production and a decrease in food prices.
Correct B. The policy will lead to a decrease in food production and an increase in food prices.
C. The policy will have no effect on food production and prices.
D. The policy will lead to an increase in food production and an increase in food prices.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm is operating in a perfectly competitive market. The demand for its product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The firm's supply curve is given by the equation Qs = 2P - 10, where Qs is the quantity supplied. What is the equilibrium price and quantity in this market?
Correct A. P = 20, Q = 30
B. P = 30, Q = 20
C. P = 40, Q = 10
D. P = 50, Q = 5

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A monopolist is producing a product with a demand curve given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The firm's marginal revenue (MR) is given by the equation MR = 2P - 20. What is the firm's optimal price and quantity?
A. P = 30, Q = 40
Correct B. P = 40, Q = 30
C. P = 50, Q = 20
D. P = 60, Q = 10

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm is producing a product with a demand curve given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The firm's supply curve is given by the equation Qs = 2P - 10, where Qs is the quantity supplied. What is the firm's profit-maximizing price and quantity?
Correct A. P = 20, Q = 30
B. P = 30, Q = 20
C. P = 40, Q = 10
D. P = 50, Q = 5

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A country is experiencing a recession. The government has introduced a fiscal policy package to stimulate economic growth. The package includes a cut in income tax rates and an increase in government sp\ending. What is the likely effect of this policy on the economy?
Correct A. The policy will lead to an increase in aggregate demand and an increase in economic growth.
B. The policy will lead to a decrease in aggregate demand and a decrease in economic growth.
C. The policy will have no effect on aggregate demand and economic growth.
D. The policy will lead to an increase in aggregate demand and a decrease in economic growth.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.
A. 50 units, ₦150
Correct B. 75 units, ₦120
C. 100 units, ₦100
D. 125 units, ₦80

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A country's GDP is ₦1.2 trillion. Its imports are ₦400 billion and its exports are ₦300 billion. What is its balance of trade?
A. ₦100 billion surplus
Correct B. ₦100 billion deficit
C. ₦200 billion surplus
D. ₦200 billion deficit

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, find the optimal combination of labor and capital.
A. L = 100 units, K = 50 units
Correct B. L = 50 units, K = 100 units
C. L = 200 units, K = 25 units
D. L = 25 units, K = 200 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A firm faces a market demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.
A. 50 units, ₦150
Correct B. 75 units, ₦120
C. 100 units, ₦100
D. 125 units, ₦80

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A country's GDP is ₦1.2 trillion. Its imports are ₦400 billion and its exports are ₦300 billion. What is its balance of trade?
A. ₦100 billion surplus
Correct B. ₦100 billion deficit
C. ₦200 billion surplus
D. ₦200 billion deficit

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A country's economic growth is often measured by its GDP per capita. However, this measure has its limitations. What is one major limitation of u\sing GDP per capita as a measure of economic growth?
Correct A. It does not account for income inequality.
B. It does not account for the quality of goods and services produced.
C. It does not account for the environmental impact of economic activity.
D. It does not account for the level of poverty in the country.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is $10, what is the quantity demanded?
A. 50
Correct B. 60
C. 70
D. 80

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is $100 and the prices of the two goods are $5 and $10 respectively, what is the consumer's optimal bundle?
A. (10,20)
B. (15,15)
Correct C. (20,10)
D. (25,5)

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A country's balance of payments account is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is $100 and the value of imports is $80, what is the balance of payments?
A. $10
Correct B. $20
C. $30
D. $40

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A firm's supply curve is given by the equation Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price is $5, what is the quantity supplied?
A. 15
Correct B. 20
C. 25
D. 30

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
The Central Bank of Nigeria (CBN) has implemented a monetary policy aimed at reducing inflation. The policy involves increa\sing the reserve requirement for commercial banks. Which of the following is a likely effect of this policy?
Correct A. A decrease in the money supply
B. An increase in the money supply
C. A decrease in interest rates
D. An increase in interest rates

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A firm is considering investing in a new project. The project has a \cost of ₦1,000,000 and is expected to generate a revenue of ₦1,200,000. However, there is a 20% chance that the project will fail and result in a loss of ₦500,000. What is the expected value of the project?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
The government of Nigeria has implemented a tax on imported goods. The tax is ₦5 per unit of the good. If a firm imports 100 units of the good, what is the total tax paid?
Correct A. ₦500
B. ₦1,000
C. ₦2,000
D. ₦5,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 200 units of capital, what is the quantity produced?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
The balance of payments (BOP) accounts for a country are given below. What is the value of the current account balance?
A. ₦100,000
B. ₦200,000
Correct C. ₦300,000
D. ₦400,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support