POST UTME BSU 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
C. ₦800
D. ₦900
Question 2
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. \( Q2 = 2 \)
B. \( Q2 = 3 \)
C. \( Q2 = 4 \)
D. \( Q2 = 5 \)
Question 3
The concept of opportunity \cost is closely related to the concept of
A. scarcity
B. diminishing marginal utility
C. marginal \cost
D. marginal revenue
Question 4
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%
B. 20%
C. 30%
D. 40%
Question 5
A country's government is considering a policy to reduce inflation. Which of the following policies would be most effective in reducing inflation?
A. Monetary policy
B. Fiscal policy
C. Supply-side policy
D. Demand-side policy
Question 6
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
B. ₦75, 25 units
C. ₦100, 0 units
D. ₦200, 100 units
Question 7
The concept of diminishing marginal utility is related to the concept of
A. increa\sing returns
B. cons\tant returns
C. decrea\sing returns
D. diminishing returns
Question 8
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal \cost
B. marginal revenue
C. average \cost
D. average revenue
Question 9
The concept of comparative advantage is related to the concept of
A. absolute advantage
B. comparative advantage
C. opportunity \cost
D. marginal \cost
Question 10
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?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 11
The 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 supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, what is the equilibrium price and quantity?
A. P = ₦50, Q = 25
B. P = ₦75, Q = 50
C. P = ₦100, Q = 75
D. P = ₦125, Q = 100
Question 12
A firm is considering two different production techno\logies: a traditional techno\logy with a production function Q = 2L^0.5K^0.5, and a modern techno\logy with a production function Q = 3L^0.7K^0.3. If the firm's current input prices are wL = ₦100 and rK = ₦200, and it is currently producing 100 units of output, which techno\logy should the firm adopt?
A. Traditional techno\logy
B. Modern techno\logy
C. Either techno\logy is equally efficient
D. Neither techno\logy is efficient
Question 13
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.
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.
Question 14
The concept of comparative advantage states that a country should specialize in producing the good or service for which it has a
A. absolute advantage
B. comparative advantage
C. opportunity \cost
D. marginal \cost
Question 15
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are wL = ₦100 and rK = ₦200, and it is currently producing 100 units of output, what is the firm's current total \cost of production?
A. ₦10,000
B. ₦12,000
C. ₦15,000
D. ₦20,000

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