POST UTME BOWEN UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200K = 10000, what is the optimal level of labor and capital?
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 100, K = 200
D. L = 200, K = 100
Question 2
A consumer's indifference curve is represented by the equation ( u(x,y) = x^2 + 2y^2 ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 3
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
C. 1,700,000,000,000
D. 1,800,000,000,000
Question 4
A country's money supply is ₦100 billion, its velocity of money is 2, and its price level is ₦10. What is the country's nominal GDP?
A. ₦200 billion
B. ₦300 billion
C. ₦400 billion
D. ₦500 billion
Question 5
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200K = 10000, what is the optimal level of labor and capital?
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 100, K = 200
D. L = 200, K = 100
Question 6
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?
A. ₦500
B. ₦1,000
C. ₦2,000
D. ₦5,000
Question 7
A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. Find the country's national income.
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 8
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
C. ₦300,000
D. ₦400,000
Question 9
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
B. 20
C. 30
D. 40
Question 10
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)
B. (15,15)
C. (20,10)
D. (25,5)
Question 11
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
B. ₦100 billion deficit
C. ₦200 billion surplus
D. ₦200 billion deficit
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 price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200H = 10000, find the optimal level of labor and capital that maximizes output.
A. L = 100, H = 50
B. L = 50, H = 100
C. L = 200, H = 50
D. L = 50, H = 200
Question 13
A firm's total revenue function is given by TR = 100x - 2x^2, where x is the quantity of output produced. If the firm's fixed \cost is ₦1000, find the profit-maximizing level of output.
A. x = 10
B. x = 20
C. x = 30
D. x = 40
Question 14
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?
A. P = 20, Q = 30
B. P = 30, Q = 20
C. P = 40, Q = 10
D. P = 50, Q = 5
Question 15
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
B. 20
C. 25
D. 30

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