POST UTME BOWEN UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is facing a market structure where the demand curve is given by Qd = 100 - 2P, and the supply curve is given by Qs = 2P. What is the equilibrium price and quantity?
A. P = 20, Q = 60
B. P = 25, Q = 50
C. P = 30, Q = 40
D. P = 35, Q = 30
Question 2
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 120, and its marginal \cost (MC) is 80, what is the optimal quantity of output?
A. 100 units
B. 120 units
C. 150 units
D. 180 units
Question 3
Consider a consumer with a utility function U(x,y) = 2x + 3y. If the consumer's budget constraint is 10x + 5y = 50, and the consumer's initial \endowment is (x0, y0) = (2, 3), what is the consumer's optimal consumption bundle?
A. (5, 5)
B. (10, 0)
C. (0, 10)
D. (2, 3)
Question 4
A country's GDP is ₦10 trillion, and its GNP is ₦12 trillion. What is the net factor income from abroad?
A. ₦2 trillion
B. ₦1 trillion
C. ₦0.5 trillion
D. ₦0.1 trillion
Question 5
Agricultural development in Nigeria has been hindered by the lack of access to credit facilities by farmers. Which of the following is a possible solution to this problem?
A. Establishing a national agricultural bank
B. Providing subsidies to farmers
C. Increa\sing the interest rate on loans
D. Reducing the amount of credit available to farmers
Question 6
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the firm uses 10 units of labor and 5 units of capital, what is the output?
A. 25
B. 30
C. 35
D. 40
Question 7
A government imposes a tax on a firm's profits. The tax rate is 20% of the profits. If the firm's profits before tax are ₦1,000,000, what is the amount of tax paid?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 8
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be used to produce other goods. This is an example of a trade-off between:
A. Present consumption and future consumption
B. Present consumption and leisure
C. Future consumption and leisure
D. Present consumption and investment
Question 9
A consumer has a utility function U(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the optimal bundle of goods?
A. x = 100, y = 50
B. x = 150, y = 75
C. x = 200, y = 100
D. x = 250, y = 125
Question 10
Suppose a country's import demand function is given by \( Q^d = 100 - 2P \) and the export supply function is given by \( Q^s = 50 + P \), where ( P ) is the price in dollars. If the country's trade balance is initially in surplus, what is the price level at which the trade balance will be zero?
A. $25
B. $50
C. $75
D. $100
Question 11
A country's GDP is given by G = C + I + G. If the country's consumption function is C = 100 + 0.8Y, the investment function is I = 50 + 0.2Y, and the government sp\ending function is G = 200, find the country's GDP when Y = 1000.
A. G = 1200
B. G = 1300
C. G = 1400
D. G = 1500
Question 12
A firm's demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is ₦50, what is the quantity demanded?
A. 50
B. 75
C. 100
D. 125
Question 13
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the monopolist's optimal price?
A. 20
B. 30
C. 40
D. 50
Question 14
A diagram showing the production possibilities frontier (PPF) for two countries is provided below. If Country A experiences a techno\logical improvement, what will happen to its PPF?
A. Shift outward
B. Shift inward
C. Remain the same
D. Be unaffected
Question 15
The supply curve of a firm is said to be upward-sloping if the firm is a price-taker. However, if the firm is a price-maker, the supply curve is said to be downward-sloping. Which of the following is a characteristic of a price-maker firm?
A. The firm is a price-taker
B. The firm is a price-maker
C. The firm produces a homogeneous product
D. The firm produces a heterogeneous product

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