POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2023 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 firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the point where L = 16 and K = 9?
A. 1
B. 2
C. 3
D. 4
Question 2
A country's agricultural sector is characterized by a high degree of monopolistic competition. What is the likely effect of an increase in the price of a key input on the industry's supply curve?
A. The supply curve shifts to the left
B. The supply curve shifts to the right
C. The supply curve remains unchanged
D. The supply curve shifts downward
Question 3
A firm is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦10 million and has a variable \cost of ₦5 per unit. Process B requires an initial investment of ₦15 million and has a variable \cost of ₦3 per unit. If the firm produces 10,000 units, what is the total \cost of production for each process?
A. Process A: ₦52.5 million, Process B: ₦48.5 million
B. Process A: ₦57.5 million, Process B: ₦53.5 million
C. Process A: ₦42.5 million, Process B: ₦38.5 million
D. Process A: ₦62.5 million, Process B: ₦58.5 million
Question 4
A firm is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦10 million and has a variable \cost of ₦5 per unit. Process B requires an initial investment of ₦15 million and has a variable \cost of ₦3 per unit. If the firm produces 10,000 units, what is the total revenue for each process?
A. Process A: ₦52.5 million, Process B: ₦48.5 million
B. Process A: ₦57.5 million, Process B: ₦53.5 million
C. Process A: ₦42.5 million, Process B: ₦38.5 million
D. Process A: ₦62.5 million, Process B: ₦58.5 million
Question 5
A firm's production function is given by Q = 2L^2 + 3K. The firm's \cost function is C(L, K) = 2L + 3K. Find the firm's optimal input bundle of L and K.
A. L = 2, K = 3
B. L = 3, K = 2
C. L = 4, K = 1
D. L = 5, K = 0
Question 6
A country's balance of payments is in equilibrium when the current account is equal to the capital account. True or False?
A. True
B. False
C. Dep\ends on the country's economic policies
D. It is not possible to determine the balance of payments without more information
Question 7
A country's GDP is ₦10 trillion, and its GNP is ₦11 trillion. What is the net factor income from abroad?
A. ₦1 trillion
B. ₦0.5 trillion
C. ₦1.5 trillion
D. ₦2 trillion
Question 8
A consumer's utility function is given by U(x, y) = 2x + 3y. The consumer's budget constraint is 2x + 3y = 12. Find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 9
A firm's production function is given by Q = 2L^2 + 3K. The firm's \cost function is C(L, K) = 2L + 3K. Find the firm's optimal input bundle of L and K.
A. L = 2, K = 3
B. L = 3, K = 2
C. L = 4, K = 1
D. L = 5, K = 0
Question 10
A government is considering implementing a tax on a particular good. The government's revenue from the tax is given by R = tQ, where t is the tax rate and Q is the quantity of the good sold. If the government's current revenue from the tax is R = 100, and the tax rate is t = 0.1, what is the quantity of the good sold?
A. 1000
B. 500
C. 200
D. 50
Question 11
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is D(p) = 100 - 2p and the marginal \cost (MC) of each firm is cons\tant at ₦10, what is the equilibrium price and quantity?
A. ₦20, 40 units
B. ₦15, 60 units
C. ₦25, 30 units
D. ₦30, 20 units
Question 12
A country's government imposes a tax on a good, cau\sing the supply curve to shift from S1 to S2. The demand curve remains unchanged. Find the new equilibrium price and quantity.
A. P = 20, Q = 40
B. P = 30, Q = 30
C. P = 40, Q = 20
D. P = 50, Q = 10
Question 13
A firm's production function is given by \( Q = 2K^{0.5}L^{0.5} \). What is the return to scale when K = 4 and L = 4?
A. Increa\sing returns to scale
B. Decrea\sing returns to scale
C. Cons\tant returns to scale
D. Negative returns to scale
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of capital (MPK) when the firm is producing at the point where L = 16 and K = 9?
A. 1
B. 2
C. 3
D. 4
Question 15
A consumer's budget constraint is given by P1X + P2Y = I, where P1 and P2 are the prices of goods X and Y, respectively, and I is the consumer's income. If the consumer's income is I = 100, and the prices of goods X and Y are P1 = 5 and P2 = 10, respectively, what is the consumer's indifference curve when the consumer is consuming 20 units of good Y?
A. 20
B. 30
C. 40
D. 50

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