POST UTME BSU 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
Consider a country with a fixed budget for public exp\enditure. The government must allocate this budget among various sectors such as education, healthcare, infrastructure, and defense. Assuming that the government wants to maximize the overall welfare of its citizens, which of the following allocation methods would be most appropriate?
Question 2
The government of Nigeria plans to implement a new agricultural policy to increase food production. The policy involves providing subsidies to farmers who produce crops such as maize, rice, and wheat. If the subsidy is ₦50 per ki\logram of maize, ₦30 per ki\logram of rice, and ₦20 per ki\logram of wheat, calculate the total subsidy paid to a farmer who produces 100 ki\lograms of maize, 50 ki\lograms of rice, and 20 ki\lograms of wheat.
Question 3
A firm's production function is given by Q = 2L^0.8H^0.2, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are 6 and 12 units respectively, what is the total product of labor (TPL) when H = 12?
Question 4
A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current labor and capital inputs are L = 4 and H = 9, what is the firm's total product?
Question 5
A country's GDP is ₦100 billion, its imports are ₦20 billion and its exports are ₦30 billion. What is its balance of trade?
Question 6
A country's balance of payments account is given by the following equation: BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is $100 million and the value of imports is $120 million, what is the balance of payments?
Question 7
Consider a country with a fixed supply of labor. The government wants to implement a policy to increase the country's economic growth. Which of the following policies would be most effective in achieving this goal?
Question 8
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost is MC = 20. What is the monopolist's profit-maximizing output?
Question 9
The government of Nigeria plans to implement a new tax policy to reduce income inequality. The policy involves a progressive tax system where the tax rate increases as income increases. If the tax rate is 10% for income up to ₦100,000, 20% for income between ₦100,000 and ₦200,000, and 30% for income above ₦200,000, calculate the total tax paid by a person with an annual income of ₦250,000.
Question 10
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are 4 and 9 units respectively, what is the marginal product of labor (MPL) when H = 9?
Question 11
A government imposes a tax of $10 on a product, which causes the supply curve to shift from Q = 2P - 50 to Q = 2P - 60. If the demand curve is given by Q = 100 - 2P, find the new equilibrium price and quantity.
Question 12
A country's GNP at market price is ₦120 billion. The government imposes a 15% tax on all foreign earnings. What is the GNP at factor \cost?
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦50 per unit and the price of capital (K) is ₦100 per unit, calculate the marginal product of labor (MPL) and the marginal product of capital (MPK).
Question 14
A firm is considering two production methods: Method A, which requires an initial investment of ₦10 million and generates a profit of ₦5 million per year, and Method B, which requires an initial investment of ₦20 million and generates a profit of ₦10 million per year. Assuming that the firm wants to maximize its profits, which method should it choose?
Question 15
A firm's production function is given by Q = 2L^0.5H^0.5, where L and H are labor and capital inputs respectively. If the firm's current labor and capital inputs are L = 4 and H = 9, what is the marginal product of labor?
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