POST UTME BOWEN UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government imposes a tax of $10 on a firm's output. If the firm's output is 100 units and the tax is passed on to consumers, what is the new price of the output?
A. $110
B. $120
C. $130
D. $140
Question 2
A consumer has an indifference curve given by U(x, y) = 2x^0.5y^0.5. If the price of x is ₦50 and the price of y is ₦100, what is the optimal bundle of x and y?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 20, y = 2
D. x = 2, y = 20
Question 3
A country's GNP is given by GNP = 100 + 0.5Y + 0.2C. If the country's current GNP is ₦5000 and the current values of Y and C are ₦2000 and ₦1000, respectively, what is the country's current value of Y?
A. ₦3000
B. ₦3500
C. ₦4000
D. ₦4500
Question 4
A firm is producing at a point on its production function where the marginal product of labor is 10 units per hour. If the firm increases its labor input by 1 hour, what is the change in total product?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 5
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price is increased by 10%, what is the percentage change in quantity demanded?
A. -5%
B. -10%
C. -15%
D. -20%
Question 6
A consumer is faced with the following utility function: U(x,y) = 2x + 3y. If the consumer's budget constraint is 100, and the prices of x and y are 5 and 10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 0
B. x = 20, y = 10
C. x = 0, y = 10
D. x = 15, y = 5
Question 7
A firm has a production function F(L, K) = 2L^0.5K^0.5. If the price of labor is ₦100 and the price of capital is ₦200, what is the optimal level of labor and capital?
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 20, K = 2
D. L = 2, K = 20
Question 8
A firm is producing a homogeneous product with a cons\tant elasticity of demand of 0.5. If the firm's revenue is ₦2,000,000, calculate the price elasticity of demand.
A. 0.2
B. 0.5
C. 0.8
D. 1.0
Question 9
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 5 units of output, what is the total \cost of production?
A. ₦75
B. ₦85
C. ₦95
D. ₦105
Question 10
A firm has a production function F(L, K) = 2L^0.5K^0.5. If the price of labor is ₦100 and the price of capital is ₦200, what is the optimal level of labor and capital?
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 20, K = 2
D. L = 2, K = 20
Question 11
A country's GDP is ₦15,000,000,000, and its GNP is ₦16,000,000,000. Calculate the net factor income from abroad.
A. ₦1,500,000,000
B. ₦2,000,000,000
C. ₦2,500,000,000
D. ₦3,000,000,000
Question 12
A country's GDP is given by GDP = 100 + 0.5Y + 0.2C. If the country's current GDP is ₦5000 and the current values of Y and C are ₦2000 and ₦1000, respectively, what is the country's current value of Y?
A. ₦3000
B. ₦3500
C. ₦4000
D. ₦4500
Question 13
A consumer has an indifference curve given by U(x, y) = 2x^0.5y^0.5. If the price of x is ₦50 and the price of y is ₦100, what is the optimal bundle of x and y?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 20, y = 2
D. x = 2, y = 20
Question 14
The demand function for a product is given by p = 100 - 2q. If the price elasticity of demand is -2, what is the quantity demanded?
A. 20
B. 30
C. 40
D. 50
Question 15
A consumer's utility function is given by U = 2x + 3y. If the consumer's current income is ₦1000 and the prices of x and y are ₦5 and ₦10, respectively, what is the consumer's optimal bundle of x and y?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50

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