POST UTME BSU 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is represented by the equation u(x,y) = 2x + 3y. If the consumer's initial \endowment is (x0, y0) = (10, 20), and the price of good x is ₦5, while the price of good y is ₦3, what is the consumer's optimal bundle?
A. x = 5, y = 10
B. x = 10, y = 5
C. x = 15, y = 0
D. x = 0, y = 15
Question 2
A firm's \cost function is given by C = 2L + 3K. If the firm's current inputs are L = 10 and K = 5, what is the firm's current \cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 3
A firm's revenue function is given by R = 100L + 200K. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total revenue of producing 50 units of output.
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal \cost curve is MC = 10. What is the profit-maximizing price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 5
Suppose a firm is operating in a perfectly competitive market with a given market demand curve and a given market supply curve. If the firm's marginal revenue (MR) curve intersects the market demand curve at a point where the quantity demanded is 100 units, and the market price is ₦100, what is the firm's marginal \cost (MC) at this point?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 6
A firm is considering investing in a new project with the following cash flows: Year 0: ₦100,000 (initial investment), Year 1: ₦50,000 (revenue), Year 2: ₦75,000 (revenue), Year 3: ₦0 (salvage value). If the firm's \cost of capital is 10%, what is the net present value (NPV) of the project?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 7
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the marginal product of labor.
A. 5 units of output
B. 10 units of output
C. 15 units of output
D. 20 units of output
Question 8
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \) + \( S - T \). If the country's current account balance is ₦100, the capital account balance is ₦200, and the government's budget deficit is ₦300, what is the country's overall balance of payments?
A. ₦500
B. ₦600
C. ₦700
D. ₦800
Question 9
A country's GDP is ₦100 billion. The government decides to increase the price of a good by 10%. What is the new GDP?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 10
A firm's production function is given by Q = 2L^0.5 K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the firm's current output?
A. 32
B. 64
C. 128
D. 256
Question 11
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total \cost of producing 100 units of output.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 12
A consumer's indifference curve is represented by the equation u(x,y) = x^2 + 2y^2. If the consumer's initial \endowment is (x0, y0) = (10, 20), and the price of good x is ₦5, while the price of good y is ₦3, what is the consumer's optimal bundle?
A. x = 5, y = 10
B. x = 10, y = 5
C. x = 15, y = 0
D. x = 0, y = 15
Question 13
The following table shows the production schedule of a firm producing two goods, X and Y. U\sing the data in the table, calculate the opportunity \cost of producing one more unit of good X.
A. 2 units of Y
B. 3 units of Y
C. 4 units of Y
D. 5 units of Y
Question 14
A country's GNP at market price is ₦1,500,000. If the value added tax (VAT) rate is 10%, calculate the GNP at factor \cost.
A. ₦1,350,000
B. ₦1,400,000
C. ₦1,450,000
D. ₦1,500,000
Question 15
A firm is considering investing in a new project with the following cash flows: Year 0: ₦100,000 (initial investment), Year 1: ₦50,000 (revenue), Year 2: ₦75,000 (revenue), Year 3: ₦0 (salvage value). If the firm's \cost of capital is 10%, what is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%

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