POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a utility function U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 100, y = 100
B. x = 150, y = 50
C. x = 200, y = 0
D. x = 0, y = 333
Question 2
A firm's revenue function is given by TR = 100q - 2q^2. If the market price is $10, find the firm's marginal revenue.
A. MR = $10
B. MR = $20
C. MR = $30
D. MR = $40
Question 3
The government of Nigeria is planning to implement a new economic policy to stimulate economic growth. The policy includes increa\sing the minimum wage, reducing taxes, and investing in infrastructure. What is the expected outcome of this policy?
A. Increased inflation
B. Decreased unemployment
C. Increased economic growth
D. Decreased economic growth
Question 4
A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. If the price elasticity of demand is 1.5, what is the price at which the firm should produce to maximize profits?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 5
A firm's revenue function is given by TR = 100q - 2q^2. If the market price is $10, find the firm's average revenue.
A. AR = $10
B. AR = $20
C. AR = $30
D. AR = $40
Question 6
A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. What is the profit of the firm?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 7
A country's balance of payments (BOP) accounts are given by the following equations: \( CA = 100 + 0.5Y \) and \( SA = 50 + 0.2Y \), where ( CA ) is the current account balance and ( SA ) is the capital account balance. If the country's GDP is $1000, what is the BOP deficit?
A. ( 150 )
B. ( 200 )
C. ( 250 )
D. ( 300 )
Question 8
A firm is considering two projects: Project A has a probability of success of 0.6 and a payoff of ₦1000, while Project B has a probability of success of 0.4 and a payoff of ₦500. What is the expected value of the firm's payoff?
A. ₦600
B. ₦400
C. ₦500
D. ₦700
Question 9
A farmer is producing a crop with a yield of 100 kg/ha. The price of the crop is ₦500/kg. What is the total revenue of the farmer from 10 hectares of land?
A. ₦5,000,000
B. ₦5,500,000
C. ₦6,000,000
D. ₦6,500,000
Question 10
A consumer is faced with a budget constraint of ₦1,500 and a utility function of U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the two goods are ₦50 and ₦75, respectively, what is the optimal bundle of goods that maximizes utility?
A. x = 10, y = 5
B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 100 and 400 respectively, what is the firm's output?
A. 100
B. 200
C. 400
D. 800
Question 12
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 100, what is the optimal combination of x and y that maximizes utility?
A. x = 5, y = 10
B. x = 10, y = 5
C. x = 15, y = 3
D. x = 20, y = 2
Question 13
A country's national income accounting identity is given by the equation \( Y = C + I + G + \( X - M \ \) ), where ( Y ) is the national income, ( C ) is the consumption, ( I ) is the investment, ( G ) is the government sp\ending, ( X ) is the exports, and ( M ) is the imports. If the country's national income is $1000, consumption is $300, investment is $200, government sp\ending is $100, exports are $200, and imports are $100, what is the trade balance?
A. ( 100 )
B. ( 200 )
C. ( 300 )
D. ( 400 )
Question 14
A firm's \cost function is given by C(q) = 100 + 20q. If the market price is $20, find the firm's profit-maximizing quantity.
A. q = 5
B. q = 10
C. q = 15
D. q = 20
Question 15
A firm's revenue function is given by TR = 100q - 2q^2. If the market price is $10, find the firm's total \cost.
A. TC = ₦1000
B. TC = ₦1500
C. TC = ₦2000
D. TC = ₦2500

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