POST UTME BOWEN UNIVERSITY 2020 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 2020 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, if a multinational corporation operating in the country imports raw materials worth ₦100 billion, how would this affect the country's GDP?
A. The country's GDP would increase by ₦100 billion.
B. The country's GDP would decrease by ₦100 billion.
Correct C. The country's GDP would remain unchanged.
D. The country's GDP would increase by ₦50 billion.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A government imposes a tariff of 20% on imported goods. If a consumer buys a product worth ₦100, how much will they pay in total?
Correct A. ₦120
B. ₦100
C. ₦80
D. ₦1200

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A firm's revenue is given by the equation R = 2x^2 + 5x - 3, where x is the number of units sold. If the firm sells 5 units, what is its revenue?
A. ₦23
Correct B. ₦25
C. ₦27
D. ₦30

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A country's balance of payments account shows a trade deficit of ₦100 billion. What does this mean?
A. The country is exporting more goods than it is importing.
Correct B. The country is importing more goods than it is exporting.
C. The country's GDP is decrea\sing.
D. The country's inflation rate is increa\sing.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A firm's \cost function is given by the equation C(x) = 2x^2 + 5x - 3, where x is the number of units produced. If the firm produces 5 units, what is its total \cost?
A. ₦23
Correct B. ₦25
C. ₦27
D. ₦30

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
Consider a closed economy with a GDP of ₦1,500,000 and a GNP of ₦1,600,000. If the net factor income from abroad is ₦50,000, calculate the value of the net factor income from abroad as a percentage of the GNP.
A. 2%
Correct B. 3%
C. 4%
D. 5%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A central bank is considering a monetary policy to reduce inflation. If the current inflation rate is 8% and the bank wants to reduce it to 4% within the next 2 years, what is the required annual rate of decrease in the money supply?
A. 4%
B. 6%
Correct C. 8%
D. 10%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A government is considering a tax reform to reduce the tax burden on low-income earners. If the current tax rate is 20% and the government wants to reduce it to 15% for individuals earning less than ₦50,000 per annum, what is the required tax revenue to be generated from the remaining 5% tax rate?
A. ₦1,000,000
B. ₦1,500,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A country is experiencing a trade deficit of ₦100,000,000. If the current exchange rate is 1 USD = ₦500, and the country wants to reduce the trade deficit by 20% within the next year, what is the required increase in exports in terms of USD?
A. ₦50,000,000
B. ₦75,000,000
C. ₦100,000,000
Correct D. ₦125,000,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A firm is considering an investment project with a net present value (NPV) of ₦1,000,000. If the \cost of capital is 10% and the firm wants to determine the internal rate of return (IRR), what is the required IRR?
A. 8%
Correct B. 10%
C. 12%
D. 14%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A consumer's indifference curve is steeper than another consumer's indifference curve. What can be concluded about the two consumers?
A. The first consumer is more risk-averse.
B. The first consumer has a higher income.
C. The first consumer has a higher marginal rate of substitution.
Correct D. The first consumer has a lower marginal rate of substitution.

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
Agricultural development in Nigeria has been hindered by the lack of access to credit for small-scale farmers. What is the opportunity \cost of providing credit to these farmers?
A. The opportunity \cost is the forgone income from not investing in other sectors.
Correct B. The opportunity \cost is the forgone income from not investing in other agricultural projects.
C. The opportunity \cost is the forgone income from not investing in other industries.
D. The opportunity \cost is the forgone income from not investing in other countries.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
The demand for a good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is increased by 10%, what is the new quantity demanded?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
The government of Nigeria has implemented a policy to increase the production of rice. What is the opportunity \cost of this policy?
A. The opportunity \cost is the forgone income from not investing in other sectors.
Correct B. The opportunity \cost is the forgone income from not investing in other agricultural projects.
C. The opportunity \cost is the forgone income from not investing in other industries.
D. The opportunity \cost is the forgone income from not investing in other countries.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
The supply of a good is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price is increased by 10%, what is the new quantity supplied?
A. 55
B. 60
Correct C. 65
D. 70

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
The government of Nigeria has introduced a new policy to increase agricultural production. The policy involves providing subsidies to farmers who use modern farming techniques. However, the policy also requires farmers to adopt a new crop rotation system. If the government provides a subsidy of ₦10,000 to each farmer, and the \cost of adopting the new crop rotation system is ₦8,000, what is the net benefit to the farmer?
Correct A. ₦2,000
B. ₦12,000
C. ₦18,000
D. ₦20,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A firm produces two goods, A and B. The production function for good A is given by Q_A = 2L + 3K, where L is labor and K is capital. The production function for good B is given by Q_B = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the total output of the firm?
A. 30
B. 40
Correct C. 50
D. 60

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A consumer has a budget of ₦10,000 and a utility function given by U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the two goods are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
Correct A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A firm is considering two investment projects. Project A has a \cost of ₦10,000 and a return of ₦12,000. Project B has a \cost of ₦15,000 and a return of ₦18,000. Which project should the firm choose?
Correct A. Project A
B. Project B
C. Both projects
D. Neither project

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the two goods are ₦5 and ₦3 respectively, and the consumer's budget is ₦10,000, what is the consumer's optimal bundle?
Correct A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A firm operating in a perfectly competitive market is characterized by which of the following?
A. A \single price setter
Correct B. A large number of firms producing a homogeneous product
C. A firm that can influence the market price
D. A firm that produces a differentiated product

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A consumer's indifference curve is steeper than another consumer's indifference curve if the consumer has a higher marginal rate of substitution.
A. True
Correct B. False
C. It dep\ends on the consumer's preferences
D. It dep\ends on the price of the goods

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A firm's short-run \cost function is given by TC = 100 + 2Q + 0.1Q^2. What is the firm's average variable \cost when Q = 10?
A. ₦120
Correct B. ₦130
C. ₦140
D. ₦150

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A country's GDP is ₦100 billion and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦20 billion
Correct B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect on the firm's revenue?
A. The firm's revenue increases
Correct B. The firm's revenue decreases
C. The firm's revenue remains the same
D. The firm's revenue becomes zero

Correct Answer: B

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