POST UTME BOWEN UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Determine the elasticity of demand for a product whose price elasticity of demand is 0.5 and the quantity demanded is 100 units when the price is ₦100.
A. 0.5
B. 1.0
C. 2.0
D. 3.0
Question 2
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm's revenue function is R(x) = 4x^2 + 10x + 5, find the value of x that minimizes the firm's \cost.
A. 5
B. 10
C. 15
D. 20
Question 3
A firm is considering two production techno\logies: one that produces 100 units of output per hour and another that produces 200 units of output per hour. The \cost of the first techno\logy is ₦500 per hour, and the \cost of the second techno\logy is ₦750 per hour. Find the firm's optimal production techno\logy.
A. Techno\logy 1
B. Techno\logy 2
C. Both techno\logies
D. Neither techno\logy
Question 4
A country is experiencing a trade deficit due to an increase in imports and a decrease in exports. U\sing the concept of balance of payments, explain why the country is experiencing a trade deficit.
A. The country is experiencing a trade deficit because the value of imports is greater than the value of exports.
B. The country is experiencing a trade deficit because the value of exports is greater than the value of imports.
C. The country is experiencing a trade deficit because the value of imports is equal to the value of exports.
D. The country is experiencing a trade deficit because the value of exports is equal to the value of imports.
Question 5
Consider a market with a demand function Qd = 100 - 2P and a supply function Qs = 2P + 10. If the market is in equilibrium, what is the price and quantity of the commodity?
A. Price = ₦20, Quantity = 40
B. Price = ₦30, Quantity = 50
C. Price = ₦40, Quantity = 60
D. Price = ₦50, Quantity = 70
Question 6
Suppose 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 current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the given input levels?
A. 4
B. 6
C. 8
D. 10
Question 7
A firm's total revenue (TR) is given by the equation TR = 100Q - 2Q^2, where Q is the quantity sold. If the firm sells 20 units, what is its total revenue?
A. 1000
B. 1200
C. 1400
D. 1600
Question 8
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 9
A firm has a \cost function given by C = 2Q + 3Q^2, where Q is the quantity produced. If the firm produces 5 units, what is the total \cost?
A. 35
B. 40
C. 45
D. 50
Question 10
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's current labor and capital inputs are L = 4 and H = 9, respectively, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 11
A firm is operating in a perfectly competitive market. The firm's demand curve 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 and P is the price. U\sing the concept of supply and demand, explain why the firm is operating in a perfectly competitive market.
A. The firm is operating in a perfectly competitive market because the demand curve is downward-sloping and the supply curve is upward-sloping.
B. The firm is operating in a perfectly competitive market because the demand curve is upward-sloping and the supply curve is downward-sloping.
C. The firm is operating in a perfectly competitive market because the demand curve is horizontal and the supply curve is vertical.
D. The firm is operating in a perfectly competitive market because the demand curve is vertical and the supply curve is horizontal.
Question 12
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue function is MR = 50 - 2Q. Find the profit-maximizing quantity.
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 13
Suppose a country's GDP at market price is $100 billion, and its GDP at factor \cost is $90 billion. What is the net indirect tax (NIT) as a percentage of GDP?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
Consider a production function Q = 3L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the firm's current output price is p = ₦500, calculate the firm's maximum profit.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 15
A firm's revenue function is given by R(x) = 4x^2 + 10x + 5, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 8x + 10, find the value of x that maximizes the firm's revenue.
A. 5
B. 10
C. 15
D. 20

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