POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a total revenue function given by TR = 100x - 2x^2, where x is the number of units produced and sold. If the firm's total \cost function is given by TC = 50x + 100, find the profit-maximizing level of production.
A. 20
B. 30
C. 40
D. 50
Question 2
A firm is operating in a perfectly competitive market. The firm's supply function is given by Q = 100 - 2P, where P is the price of the firm's product. If the demand for the firm's product is given by Q = 200 - 4P, what is the equilibrium price and quantity of the firm's product?
A. P = ₦100, Q = 50
B. P = ₦150, Q = 75
C. P = ₦200, Q = 100
D. P = ₦250, Q = 125
Question 3
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity of the good?
A. The equilibrium price and quantity decrease
B. The equilibrium price increases and the quantity decreases
C. The equilibrium price and quantity increase
D. The equilibrium price decreases and the quantity increases
Question 4
A firm is operating in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will happen to the firm's output?
A. Increase output
B. Decrease output
C. Keep output the same
D. Increase price
Question 5
Suppose the demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 6
A firm's demand function is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue is ₦50, what is the price elasticity of demand?
A. 1
B. 2
C. 3
D. 4
Question 7
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 8
A country's GNP is ₦120 billion, its net factor income from abroad is ₦10 billion, and its depreciation is ₦5 billion. What is its GDP?
A. ₦115 billion
B. ₦120 billion
C. ₦125 billion
D. ₦130 billion
Question 9
Consider a firm with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦200 and r = ₦400, and the current output price is p = ₦800, calculate the firm's optimal input combination u\sing the Hotelling's Lemma. Assume that the firm's objective is to maximize its profit.
A. \( L = 200, K = 200 \)
B. \( L = 100, K = 100 \)
C. \( L = 400, K = 400 \)
D. \( L = 0, K = 0 \)
Question 10
The government of a country imposes a tax on a particular good, cau\sing the supply curve to shift from S to S'. If the demand curve remains unchanged, and the new equilibrium price is ₦120, find the tax rate.
A. 10
B. 20
C. 30
D. 40
Question 11
A consumer has a budget of ₦1000 and faces the following prices for two goods: Good X \costs ₦200 and Good Y \costs ₦300. If the consumer buys 2 units of Good X, how much money is left for Good Y?
A. ₦400
B. ₦500
C. ₦600
D. ₦700
Question 12
A firm is producing a good with a production function Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, what is the marginal product of labor?
A. 0.5L^\( -0.5 \)K^0.5
B. L^\( -0.5 \)K^0.5
C. 2L^0.5K^\( -0.5 \)
D. 2L^\( -0.5 \)K^0.5
Question 13
The government of a country is considering a tax on a particular good. The demand for the good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. The supply of the good is given by the equation Q = 2P - 100, where Q is the quantity supplied and P is the price. If the government imposes a tax of ₦10 per unit on the good, what is the new equilibrium price and quantity?
A. P = ₦20, Q = 50
B. P = ₦30, Q = 70
C. P = ₦40, Q = 90
D. P = ₦50, Q = 110
Question 14
The demand for a commodity is given by the equation 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 15
A country's balance of payments account is given by the following equation: BOP = X - M + F - I. If the country's exports are ₦1000, imports are ₦500, foreign investment is ₦200, and interest payments are ₦300, what is the country's balance of payments?
A. BOP = ₦200
B. BOP = ₦300
C. BOP = ₦400
D. BOP = ₦500

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