POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^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 4 units of output.
A. ₦800
B. ₦1000
C. ₦1200
D. ₦1600
Question 2
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is ₦50, what is the firm's price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 3
A firm's production function is given by the equation \( Q = 2L^2 + 3K^2 \), where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital used. If the firm wants to produce 100 units of output, how many labor hours will it need to use if it uses 4 units of capital?
A. 10 labor hours
B. 20 labor hours
C. 30 labor hours
D. 40 labor hours
Question 4
A firm's supply function is given by Q = 2P + 10. If the price elasticity of supply is 0.5, calculate the firm's revenue.
A. ₦5000
B. ₦6000
C. ₦7000
D. ₦8000
Question 5
A country's balance of payments is given by the following table. What is the current account balance?
A. ₦1 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 6
A firm's \cost function is given by C(Q) = 2Q^2 + 5Q + 10. If the firm's revenue function is given by R(Q) = 10Q^2 - 5Q + 20, what is the firm's profit-maximizing level of output?
A. 5
B. 10
C. 15
D. 20
Question 7
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's budget constraint is 10x + 5y = 50, and the consumer's initial \endowment is (x,y) = (2,5), what is the consumer's optimal consumption bundle?
A. (5,10)
B. (10,5)
C. (15,0)
D. (0,15)
Question 8
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and the firm's current output price is p = 50, what is the firm's current profit-maximizing level of output?
A. 10
B. 20
C. 30
D. 40
Question 9
A government's budget constraint is given by B = T + I, where B is the budget, T is tax revenue, and I is government sp\ending. If the government's tax revenue is ₦500 and its sp\ending is ₦1000, what is the government's budget?
A. ₦1500
B. ₦2000
C. ₦2500
D. ₦3000
Question 10
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers. Which of the following is a likely consequence of this policy?
A. An increase in agricultural production
B. A decrease in agricultural production
C. No change in agricultural production
D. An increase in the price of agricultural products
Question 11
The Nigerian government has introduced a new tax policy to increase revenue. The policy includes a 10% increase in the value-added tax (VAT) rate. Which of the following is a likely consequence of this policy?
A. An increase in the price of goods and services
B. A decrease in the price of goods and services
C. No change in the price of goods and services
D. An increase in the revenue of the government
Question 12
A country's GDP is ₦10 trillion, while its GNP is ₦12 trillion. What is the net factor income from abroad?
A. ₦2 trillion
B. ₦1 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 13
The Nigerian government has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers. Which of the following is a likely consequence of this policy?
A. An increase in agricultural production
B. A decrease in agricultural production
C. No change in agricultural production
D. An increase in the price of agricultural products
Question 14
A firm is considering the introduction of a new product. The firm's production \costs are ₦100,000 and the selling price of the product is ₦150,000. If the firm produces 100 units of the product, what is the profit?
A. ₦5,000,000
B. ₦4,000,000
C. ₦3,000,000
D. ₦2,000,000
Question 15
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%

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