POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2022 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 L = 4 and K = 9, what is the level of output?
A. 12
B. 15
C. 18
D. 20
Question 2
A government imposes a tax on a firm's output. If the firm's pre-tax price is ₦100 and the tax rate is 10%, what will be the firm's post-tax price?
A. ₦90
B. ₦95
C. ₦100
D. ₦105
Question 3
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor increases by 20% and the price of capital increases by 15%, what is the new elasticity of capital with respect to output?
A. 0.5
B. 0.6
C. 0.7
D. 0.8
Question 4
Determine the equilibrium price and quantity of wheat in the market, given the demand equation Qd = 100 - 2P and the supply equation Qs = 2P - 10, where Qd and Qs are the quantities demanded and supplied, respectively, and P is the price of wheat.
A. \( P = 15, Q = 25 \)
B. \( P = 10, Q = 20 \)
C. \( P = 20, Q = 30 \)
D. \( P = 5, Q = 15 \)
Question 5
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 - 10, what is the price elasticity of demand at a price of $15?
A. \( \text{Unit elastic} \)
B. \( \text{Inelastic} \)
C. \( \text{Perfectly elastic} \)
D. \( \text{Perfectly inelastic} \)
Question 6
A firm's \cost function is given by C(x) = 3x^2 + 2x + 1. If the firm produces 5 units of the good, what is its total \cost?
A. $16
B. $17
C. $18
D. $19
Question 7
A country's balance of payments account is given by the following equations: \begin{align*} \text{Exports} &= 100 + 2Y - 3I \text{Imports} &= 50 + Y + 2I \text{Balance of Trade} &= \text{Exports} - \text{Imports} \end{align*} where Y is the country's GDP and I is the country's investment. If the country's GDP is $500 billion and its investment is $200 billion, what is the balance of trade?
A. 50
B. 100
C. 150
D. 200
Question 8
A firm's total revenue is ₦1.2 million, and its total \cost is ₦900,000. What is its profit?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 9
A firm's production function exhibits increa\sing returns to scale. If the firm's current output is 100 units and its current input is 50 units, what will be its output if it increases its input by 20%?
A. 120 units
B. 140 units
C. 160 units
D. 180 units
Question 10
A country's GDP is 100 billion naira. The government decides to implement a 10% tax on all goods and services. What is the new GDP after the tax is implemented?
A. ₦90 billion
B. ₦110 billion
C. ₦120 billion
D. ₦130 billion
Question 11
A country's money supply is determined by the central bank's monetary policy. If the central bank increases the money supply by 10%, what will be the effect on the general price level?
A. The general price level will increase by 10%.
B. The general price level will decrease by 10%.
C. The general price level will remain unchanged.
D. The general price level will experience a decrease in inflation.
Question 12
Agricultural development in Nigeria has been hindered by the lack of access to credit facilities for farmers. What is the most likely cause of this problem?
A. \( \text{High interest rates} \)
B. \( \text{Lack of collateral} \)
C. \( \text{Limited financial literacy} \)
D. \( \text{Inadequate government support} \)
Question 13
A firm's demand function is given by D(p) = 100 - 2p, where p is the price of the good. If the firm's marginal revenue function is MR(p) = -2p + 100, find the price that maximizes revenue.
A. 20
B. 30
C. 40
D. 50
Question 14
A central bank increases the reserve requirement for commercial banks. What is the effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 15
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
A. 1
B. 2
C. 3
D. 4

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: