POST UTME BSU 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its quantity demanded?
A. The quantity demanded will increase
B. The quantity demanded will decrease
C. The quantity demanded will remain the same
D. The firm will experience a decrease in revenue
Question 2
A government imposes a tax of $5 on a firm's output. If the firm's supply curve is given by Q = 100 + 2P, what is the new supply curve after the tax?
A. Q = 100 + 2P - 5
B. Q = 100 + 2P + 5
C. Q = 100 - 2P + 5
D. Q = 100 - 2P - 5
Question 3
The concept of opportunity \cost is closely related to the concept of scarcity. Which of the following is a correct example of opportunity \cost?
A. The \cost of producing a good
B. The \cost of not producing a good
C. The \cost of producing one good instead of another
D. The \cost of producing a good and selling it
Question 4
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $30 billion. What is its net foreign income?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 5
A government is considering a tax on a good with a price elasticity of demand of -0.5. If the tax is 10% of the price, what is the effect on the quantity demanded?
A. Increase by 10%
B. Decrease by 10%
C. Increase by 5%
D. Decrease by 5%
Question 6
A firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. -5%
B. -10%
C. -15%
D. -20%
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output increases by 20% due to a 10% increase in labor and a 15% increase in capital, what is the return to scale of the firm?
A. Increa\sing
B. Decrea\sing
C. Cons\tant
D. Indeterminate
Question 8
A government has implemented a policy to increase the production of agricultural products. If the policy is successful, what is the likely effect on the overall economic growth of the country?
A. An increase in economic growth
B. A decrease in economic growth
C. No change in economic growth
D. A decrease in economic growth
Question 9
A firm is considering investing in a new project. If the project has a high expected return but also a high level of risk, what is the likely effect on the firm's decision to invest?
A. The firm is likely to invest in the project
B. The firm is unlikely to invest in the project
C. The firm may invest in the project
D. The firm will definitely invest in the project
Question 10
A firm's total revenue (TR) is given by TR = 100P - P^2, where P is the price of the product. If the firm's marginal revenue (MR) is ₦50, what is the price at which MR = TR?
A. P = ₦20
B. P = ₦30
C. P = ₦40
D. P = ₦50
Question 11
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what is the likely effect on its revenue?
A. An increase in revenue
B. A decrease in revenue
C. No change in revenue
D. A decrease in revenue
Question 12
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the firm has 100 units of labor (L) and 200 units of capital (K), what is the optimal quantity of output (Q)?
A. 100
B. 150
C. 200
D. 250
Question 13
A consumer's budget constraint is given by P_x x + P_y y = I, where P_x and P_y are the prices of x and y, respectively, and I is the consumer's income. If the consumer's current income is I = 100, and the prices of x and y are P_x = 2 and P_y = 3, respectively, what is the consumer's optimal consumption bundle?
A. ( (20, 10) )
B. ( (15, 15) )
C. ( (10, 20) )
D. ( (5, 25) )
Question 14
A consumer's indifference curve is given by U(x, y) = xy, where x and y are the quantities of x and y, respectively. If the consumer's current consumption bundle is (x, y) = (10, 5), what is the consumer's marginal rate of substitution?
A. \( \frac{dy}{dx} = -\frac{1}{2} \)
B. \( \frac{dy}{dx} = -\frac{1}{10} \)
C. \( \frac{dy}{dx} = -\frac{1}{5} \)
D. \( \frac{dy}{dx} = -\frac{1}{20} \)
Question 15
A firm is considering investing in a new project. If the project has a high expected return but also a high level of risk, what is the likely effect on the firm's decision to invest?
A. The firm is likely to invest in the project
B. The firm is unlikely to invest in the project
C. The firm may invest in the project
D. The firm will definitely invest in the project

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