POST UTME BOWEN UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good with a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. If the firm sells 1,000 units of the good, what will be its total revenue?
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000
Question 2
A firm's \cost function is given by C(L,K) = 2L + 3K. If the firm's output is 10 units and the price of the good is $5, what is the firm's total revenue?
A. $50
B. $60
C. $70
D. $80
Question 3
A country's balance of payments account shows a trade deficit of $100 million, a capital account surplus of $50 million, and a current account deficit of $20 million. What is the overall balance of payments position?
A. $30 million surplus
B. $30 million deficit
C. $50 million surplus
D. $50 million deficit
Question 4
A monopolistically competitive firm is producing a good with a demand curve that is downward sloping. If the firm increases its price, what will happen to its revenue?
A. The firm's revenue will increase.
B. The firm's revenue will decrease.
C. The firm's revenue will remain the same.
D. The firm's revenue will increase in the short run but decrease in the long run.
Question 5
A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. However, if the country experiences a trade deficit, it must rely on foreign capital inflows to finance its imports. U\sing the Marshall-Lerner condition, derive an expression for the percentage change in the exchange rate that would be required to eliminate the trade deficit.
A. E = \frac{M_X + M_M}{E_X + E_M}
B. \frac{dS}{dE} = \frac{M_X - M_M}{E_X - E_M}
C. \frac{dS}{dE} = \frac{M_X + M_M}{E_X - E_M}
D. \frac{dS}{dE} = \frac{M_X - M_M}{E_X + E_M}
Question 6
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm produces 5 units, what is the total revenue?
A. ₦125
B. ₦150
C. ₦175
D. ₦200
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10 + 2Q. What is the monopolist's optimal price and quantity?
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 8
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, what is the consumer's optimal bundle?
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 9
A country's GDP is ₦10,000 billion, and its GNP is ₦11,000 billion. What is the net factor income from abroad?
A. ₦1,000 billion
B. ₦1,500 billion
C. ₦2,000 billion
D. ₦2,500 billion
Question 10
A firm is producing a good with a demand curve that is perfectly inelastic. If the firm increases its price, what will happen to its revenue?
A. The firm's revenue will increase.
B. The firm's revenue will decrease.
C. The firm's revenue will remain the same.
D. The firm's revenue will increase in the short run but decrease in the long run.
Question 11
A firm's \cost function is given by C(Q) = 100 + 2Q^2. The firm's revenue function is given by R(Q) = 100Q. What is the firm's profit-maximizing quantity?
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 12
A farmer's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the farmer's labor is 10 units and the capital is 20 units, what is the output?
A. Q = 20
B. Q = 30
C. Q = 40
D. Q = 50
Question 13
A country's government is considering a tax on a particular good. If the tax is $2 per unit and the demand for the good is given by Q = 100 - 2P, what is the new equilibrium price?
A. $48
B. $50
C. $52
D. $54
Question 14
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. U\sing the concept of consumer and producer surplus, derive an expression for the deadweight loss caused by the tax.
A. \Delta CS = \frac{1}{2} \times \( P - MC \) \times Q
B. \Delta CS = \frac{1}{2} \times \( P - MC \) \times \( Q - T \)
C. \Delta CS = \frac{1}{2} \times \( P - MC \) \times \( Q + T \)
D. \Delta CS = \frac{1}{2} \times \( P - MC \) \times \( Q - T \)
Question 15
Consider a perfectly competitive market with n firms. If each firm increases its output by 10%, what is the expected change in the market supply curve?
A. The market supply curve shifts to the left.
B. The market supply curve shifts to the right.
C. The market supply curve remains unchanged.
D. The market supply curve shifts upward.

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