POST UTME BSU 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape for the consumer's marginal rate of substitution (MRS)?
A. The MRS is cons\tant
B. The MRS is increa\sing
C. The MRS is decrea\sing
D. The MRS is zero
Question 2
A consumer's budget constraint is given by 2X + 3Y = 12. If the price of X is ₦2 and the price of Y is ₦3, find the optimal combination of X and Y.
A. X = 2, Y = 2
B. X = 4, Y = 0
C. X = 0, Y = 4
D. X = 2, Y = 4
Question 3
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. P = 50, Q = 25
B. P = 75, Q = 25
C. P = 50, Q = 50
D. P = 75, Q = 50
Question 4
A firm's production function is given by Q = 2L^0.5, where Q is the quantity produced and L is the labor input. If the wage rate is 10 naira per hour, what is the profit-maximizing level of labor input?
A. 10
B. 20
C. 30
D. 40
Question 5
A firm produces a good u\sing a production function Q = 2L^0.5K^0.5. The firm has 100 units of Labour and 50 units of Capital. U\sing the production theory framework, determine the returns to scale.
A. Increa\sing Returns to Scale
B. Decrea\sing Returns to Scale
C. Cons\tant Returns to Scale
D. No Returns to Scale
Question 6
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue is 50, what is the value of x?
A. 10
B. 20
C. 30
D. 40
Question 7
A country's balance of payments (BOP) accounts are given by the following equations: Exports (X) = 100 + 0.5Y, Imports (M) = 50 + 0.2Y, where Y is the country's GDP. If the country's GDP is 1000, what is the country's trade balance?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm's labor is 100 units and its capital is 400 units, what is the firm's output?
A. 20
B. 30
C. 40
D. 50
Question 9
A firm produces two goods, A and B, u\sing two inputs, Labour (L) and Capital (K). The production functions are given by: Q_A = 2L^0.5K^0.5 and Q_B = 3L^0.7K^0.3. If the firm has 100 units of Labour and 50 units of Capital, calculate the marginal rate of technical substitution (MRTS) between Labour and Capital for good A.
A. 0.5
B. 1.5
C. 2.5
D. 3.5
Question 10
A country's inflation rate is 10% per annum, and its nominal interest rate is 12% per annum. What is the real interest rate?
A. 2
B. 4
C. 6
D. 8
Question 11
A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (10, 20)
B. (20, 10)
C. (15, 15)
D. (25, 5)
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal combination of labor and capital.
A. L = 100, K = 100
B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 50
Question 13
A firm's revenue function is given by R(Q) = 100Q - 0.5Q^2. If the firm produces 50 units, what is the marginal revenue?
A. 50
B. 55
C. 60
D. 65
Question 14
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 10 units of output, what is the total \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 15
A firm's revenue function is given by R(Q) = 2Q^2 - 10Q + 20. Find the profit-maximizing quantity.
A. Q = 5
B. Q = 10
C. Q = 15
D. Q = 20

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