POST UTME BOWEN UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A country's balance of payments is given by the equation BOP = X - M + \( F - I \), where X is exports, M is imports, F is foreign aid, and I is investment. If the country's BOP is $10 billion, exports are $20 billion, imports are $15 billion, foreign aid is $5 billion, and investment is $10 billion, find the value of F.
Question 2
A consumer has an indifference curve given by U = 2X + 3Y, where X and Y are the quantities of two goods. If the consumer is at a point (2, 3) on the indifference curve, what is the marginal rate of substitution?
Question 3
A consumer's utility function is given by U = 2X + 3Y, where U is the utility, X is the quantity of good X, and Y is the quantity of good Y. If the consumer buys 5 units of good X and 10 units of good Y, what is the utility?
Question 4
A government is considering a policy to reduce the budget deficit. The current budget deficit is ₦100 billion, and the government wants to reduce it by 20% in the next year. What is the new budget deficit?
Question 5
A consumer has a utility function given by U(x,y) = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 30, and the prices of x and y are 5 and 10 respectively, what is the consumer's optimal bundle?
Question 6
A firm is considering two different production techno\logies: a traditional techno\logy that requires 2 units of labor to produce 1 unit of output, and a modern techno\logy that requires 1 unit of labor to produce 2 units of output. If the firm has 100 units of labor available, what is the maximum output it can produce u\sing the modern techno\logy?
Question 7
A firm's production function is given by Q = 10L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm uses 100 units of labor and 100 units of capital, what is the output?
Question 8
A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labor and H is capital. If the firm's current input levels are L = 10 and H = 5, what is the total \cost?
Question 9
In a perfectly competitive market, if the demand for a commodity is inelastic, what will be the effect on the price and quantity supplied?
Question 10
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function of C(Q) = 10Q + 100. If the monopolist produces 40 units, what is the consumer surplus?
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 20 and r = 30, and the current output price is p = 50, calculate the firm's maximum profit.
Question 12
A government is considering a tax on a particular good. The demand for the good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. The supply of the good is given by Q = 2P - 50. What is the deadweight loss of the tax?
Question 13
A firm has a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w_L = 10 and w_K = 20, and the firm's current output price is p = 50, what is the firm's maximum profit?
Question 14
A firm is producing a good with a production function of Q = 2L^2, where L is the labor input. If the wage rate is ₦50 per unit of labor, what is the marginal product of labor?
Question 15
A consumer has the following indifference curves: IC1: 2x + 3y = 12, IC2: 3x + 2y = 15. What is the consumer's optimal bundle of x and y?
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