POST UTME AFE BABALOLA UNIVERSITY 2019 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 inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 2
A firm's \cost function is given by C(Q) = 2Q^2 + 5Q + 10, where C(Q) is the total \cost and Q is output. If the firm's output is 10 units, what is the total \cost?
A. $120
B. $150
C. $180
D. $200
Question 3
The government imposes a tax on a particular good, which leads to a decrease in its demand. What is the effect of this tax on the government's revenue?
A. The government's revenue increases
B. The government's revenue decreases
C. The government's revenue remains the same
D. The government's revenue becomes negative
Question 4
The following diagram shows the supply and demand curves for a particular good. What is the equilibrium price and quantity of this good?
A. P = 10, Q = 20
B. P = 15, Q = 30
C. P = 20, Q = 40
D. P = 25, Q = 50
Question 5
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices is greater than the percentage change in its exchange rate. U\sing the given data, calculate the percentage change in the exchange rate.
A. 10%
B. 15%
C. 20%
D. 25%
Question 6
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y, where x is the quantity of good X and y is the quantity of good Y. If the consumer's income is $100 and the prices of good X and good Y are $5 and $3, respectively, what is the consumer's optimal bundle?
A. (10,20)
B. (15,15)
C. (20,10)
D. (25,5)
Question 7
A country's balance of payments is given by the following equation: BOP = X - M, where BOP is the balance of payments, X is exports, and M is imports. If the country's exports are $100 billion and imports are $120 billion, what is the balance of payments?
A. $10 billion surplus
B. $10 billion deficit
C. $20 billion surplus
D. $20 billion deficit
Question 8
The government of Nigeria has implemented a policy to increase the production of electricity in the country. Which of the following is a likely consequence of this policy?
A. Increased production of electricity
B. Decreased prices of electricity
C. Increased unemployment in the energy sector
D. Increased imports of electricity
Question 9
A country's balance of payments is given by the following equation: BOP = X - M, where BOP is the balance of payments, X is exports, and M is imports. If the country's exports are $100 billion and imports are $120 billion, what is the balance of payments?
A. $10 billion surplus
B. $10 billion deficit
C. $20 billion surplus
D. $20 billion deficit
Question 10
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be allocated to other goods. Which of the following is a correct example of scarcity?
A. A farmer has 100 hectares of land to plant either maize or wheat.
B. A country has an abundance of natural resources to produce all the goods it needs.
C. A consumer has a limited budget to purchase all the goods they want.
D. A factory can produce an unlimited quantity of goods without any constraints.
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 12
A firm's demand curve is given by \( Q = 100 - 2P \). If the firm's marginal revenue (MR) is given by \( MR = 200 - 2P \), what is the firm's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 13
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units of output, what is the total \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 14
A country's balance of payments (BOP) accounts can be classified into three main categories: current account, capital account, and financial account. Which of the following is NOT a component of the current account?
A. Exports
B. Imports
C. Foreign Direct Investment (FDI)
D. Transfer payments
Question 15
The government of Nigeria has implemented a policy to increase the production of rice in the country. Which of the following is a likely consequence of this policy?
A. Increased imports of rice
B. Decreased prices of rice
C. Increased production of rice
D. Increased unemployment in the agricultural sector

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: