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POST UTME BSU 2017 Economics | Objective

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Question 1

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.

A. ₦50, 50 units

Correct B. ₦75, 25 units

C. ₦100, 0 units

D. ₦200, 100 units

Correct Answer: B

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Question 2

A firm's revenue function is given by R(x) = 2x^2 + 5x. Find the marginal revenue function.

Correct A. ( MR(x) = 4x + 5 )

B. ( MR(x) = 2x + 5 )

C. ( MR(x) = 4x - 5 )

D. ( MR(x) = 2x - 5 )

Correct Answer: A

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Question 3

A country's GDP is given by the equation Y = C + I + G. If C = 100, I = 200, and G = 300, find the GDP.

A. ₦600

B. ₦700

Correct C. ₦800

D. ₦900

Correct Answer: C

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Question 4

A firm's supply function is given by Q = 2P + 5. If the price is ₦10, find the quantity supplied.

A. 15 units

Correct B. 20 units

C. 25 units

D. 30 units

Correct Answer: B

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Question 5

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.

A. ₦50, 50 units

Correct B. ₦75, 25 units

C. ₦100, 0 units

D. ₦200, 100 units

Correct Answer: B

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Question 6

A perfectly competitive market has a demand curve that is downward sloping. If the market price increases by 10%, what is the percentage change in quantity demanded, assuming the demand curve is linear?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 7

A monopolist faces a demand curve with the following equation: Q = 100 - 2P. If the monopolist produces 50 units, what is the price elasticity of demand?

Correct A. 0.5

B. 1

C. 2

D. 4

Correct Answer: A

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Question 8

A central bank increases the reserve requirement for commercial banks. What is the effect on the money supply?

A. Increase

Correct B. Decrease

C. No change

D. Uncertain

Correct Answer: B

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Question 9

A firm has a production function given by Q = 2L^0.5K^0.5. If the firm increases the capital from 100 to 200, and labor from 100 to 200, what is the percentage change in output?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 10

A country's GDP is 100 billion naira, and its GNP is 120 billion naira. What is the net factor income from abroad?

A. 10 billion naira

Correct B. 20 billion naira

C. 30 billion naira

D. 40 billion naira

Correct Answer: B

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Question 11

Consider a closed economy with a \single good and service. If the government imposes a tax on the production of this good, which of the following will occur?

A. The tax will increase the price of the good.

Correct B. The tax will decrease the quantity of the good produced.

C. The tax will increase the quantity of the good produced.

D. The tax will have no effect on the price or quantity of the good.

Correct Answer: B

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Question 12

A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 5 units of output, what is its total \cost?

A. ₦125

B. ₦150

Correct C. ₦175

D. ₦200

Correct Answer: C

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Question 13

A country's balance of payments account is given by the following equation: BOP = X - M. If the country's exports (X) are ₦100 billion and its imports (M) are ₦80 billion, what is its balance of payments?

Correct A. ₦20 billion

B. ₦30 billion

C. ₦40 billion

D. ₦50 billion

Correct Answer: A

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Question 14

Consider a firm that produces two goods, A and B. The production function for good A is given by Q_A = 2L + 3K, and the production function for good B is given by Q_B = 3L + 2K. If the firm has 10 units of labor (L) and 5 units of capital (K), what is the total output of good A?

A. 20 units

Correct B. 30 units

C. 40 units

D. 50 units

Correct Answer: B

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Question 15

A country's government is considering a policy to reduce inflation. Which of the following policies would be most effective in reducing inflation?

Correct A. Monetary policy

B. Fiscal policy

C. Supply-side policy

D. Demand-side policy

Correct Answer: A

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Question 16

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market price is P = 10, and the marginal \cost (MC) of each firm is 5, what is the profit-maximizing quantity (Q) for each firm?

Correct A. \( Q = \frac{P - MC}{P} \times n \)

B. \( Q = \frac{P}{MC} \times n \)

C. \( Q = \frac{MC}{P} \times n \)

D. \( Q = \frac{P + MC}{P} \times n \)

Correct Answer: A

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Question 17

A monopolist faces a demand curve given by Q = 100 - 2P. If the marginal \cost (MC) is 10, what is the profit-maximizing price (P)?

A. \( P = 20 \)

Correct B. \( P = 30 \)

C. \( P = 40 \)

D. \( P = 50 \)

Correct Answer: B

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Question 18

A consumer has a budget of ₦1000 and faces the following prices: Q1 = ₦200, Q2 = ₦300, and Q3 = ₦400. U\sing the budget constraint, what is the maximum quantity of Q2 that the consumer can buy?

A. \( Q2 = 2 \)

Correct B. \( Q2 = 3 \)

C. \( Q2 = 4 \)

D. \( Q2 = 5 \)

Correct Answer: B

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Question 19

A firm is producing a good u\sing the production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm wants to produce a quantity of Q = 16, and the wage rate is ₦100 per hour, what is the minimum amount of capital (K) required?

A. \( K = 4 \)

B. \( K = 6 \)

Correct C. \( K = 8 \)

D. \( K = 10 \)

Correct Answer: C

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Question 20

A firm faces a demand curve given by Q = 100 - 2P. If the marginal \cost (MC) is 10, what is the profit-maximizing quantity (Q)?

A. \( Q = 20 \)

Correct B. \( Q = 30 \)

C. \( Q = 40 \)

D. \( Q = 50 \)

Correct Answer: B

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Question 21

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P and the marginal \cost (MC) of each firm is cons\tant at 10, what is the equilibrium price and quantity?

Correct A. \( P = 40, Q = 30 \)

B. \( P = 30, Q = 40 \)

C. \( P = 20, Q = 50 \)

D. \( P = 50, Q = 20 \)

Correct Answer: A

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Question 22

A firm is producing a good with a total revenue (TR) of 1000 and a total \cost (TC) of 800. If the firm's marginal revenue (MR) is 20 and its marginal \cost (MC) is 10, what is the firm's profit-maximizing quantity?

Correct A. \( Q = 20 \)

B. \( Q = 30 \)

C. \( Q = 40 \)

D. \( Q = 50 \)

Correct Answer: A

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Question 23

A country's GDP is 100 billion naira, and its GNP is 120 billion naira. What is the country's net factor income from abroad?

Correct A. ( 20 ) billion naira

B. ( 30 ) billion naira

C. ( 40 ) billion naira

D. ( 50 ) billion naira

Correct Answer: A

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Question 24

A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the firm's labor (L) increases from 100 to 120, and its capital (K) remains cons\tant at 100, what is the percentage change in output?

A. ( 10% )

Correct B. ( 20% )

C. ( 30% )

D. ( 40% )

Correct Answer: B

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Question 25

A country's balance of payments (BOP) is given by the following equation: BOP = X - M, where X is the country's exports and M is its imports. If the country's exports are 100 billion naira and its imports are 80 billion naira, what is the country's balance of payments?

Correct A. ( 20 ) billion naira

B. ( 30 ) billion naira

C. ( 40 ) billion naira

D. ( 50 ) billion naira

Correct Answer: A

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