POST UTME BOWEN UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
C. 65
D. 70
Question 2
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.
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.
Question 3
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.
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.
Question 4
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
B. ₦25
C. ₦27
D. ₦30
Question 5
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?
A. ₦2,000
B. ₦12,000
C. ₦18,000
D. ₦20,000
Question 6
Consider a firm operating in a perfectly competitive market. If the firm's production function is given by Q = 2K^\( 1/2 \) L^\( 1/2 \), where Q is output, K is capital, and L is labor, and the firm's \cost function is C = 2wK^\( 1/2 \) + 2vL^\( 1/2 \), what is the firm's long-run supply curve?
A. S = 2wK^\( 1/2 \) + 2vL^\( 1/2 \)
B. S = 2wK + 2vL
C. S = 2wK^\( 1/2 \) + 2vL
D. S = 2wK + 2vL^\( 1/2 \)
Question 7
A consumer has a budget constraint of $100 and a preference for two goods, A and B. The prices of the goods are $20 and $30 respectively. U\sing indifference curves, what is the optimal combination of goods A and B?
A. 10 units of A and 5 units of B
B. 5 units of A and 10 units of B
C. 15 units of A and 15 units of B
D. 20 units of A and 20 units of B
Question 8
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.
D. The first consumer has a lower marginal rate of substitution.
Question 9
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
C. ₦2,000,000
D. ₦2,500,000
Question 10
A country's balance of payments is given by the following equation: BOP = X - M, where X is exports and M is imports. If the country's exports increase by 10% and imports decrease by 5%, what is the percentage change in the balance of payments?
A. 2.5%
B. 5%
C. 7.5%
D. 10%
Question 11
A country's balance of payments account records a trade deficit of $100 million. The central bank decides to intervene by selling $50 million of its foreign exchange reserves to the market. What is the effect on the country's trade deficit?
A. The trade deficit increases by $50 million
B. The trade deficit decreases by $50 million
C. The trade deficit remains unchanged
D. The trade deficit increases by $100 million
Question 12
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
B. ₦130
C. ₦140
D. ₦150
Question 13
Consider a firm operating in a monopoly market. If the firm's production function is given by Q = 2K^\( 1/2 \) L^\( 1/2 \), where Q is output, K is capital, and L is labor, and the firm's \cost function is C = 2wK^\( 1/2 \) + 2vL^\( 1/2 \), what is the firm's long-run supply curve?
A. S = 2wK^\( 1/2 \) + 2vL^\( 1/2 \)
B. S = 2wK + 2vL
C. S = 2wK^\( 1/2 \) + 2vL
D. S = 2wK + 2vL^\( 1/2 \)
Question 14
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?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 15
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?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4

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