POST UTME AFE BABALOLA UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 1000 and imports are 800, what is the balance of payments?
A. 200
B. 300
C. 400
D. 500
Question 2
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase output by 20% while keeping labor cons\tant at 16 units, what percentage increase in capital is required?
A. 15%
B. 20%
C. 25%
D. 30%
Question 3
A firm has a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 20, what is the profit-maximizing quantity?
A. 50 units
B. 60 units
C. 70 units
D. 80 units
Question 4
A consumer's budget constraint is given by 2X + 3Y = 12. If the consumer's income is 12 and the price of good X is 2, what is the consumer's optimal bundle of goods X and Y?
A. X = 2, Y = 4
B. X = 4, Y = 2
C. X = 6, Y = 0
D. X = 0, Y = 6
Question 5
The marginal propensity to consume (MPC) is defined as the change in consumption resulting from a unit change in disposable income. If the MPC is 0.8, what is the change in consumption if disposable income increases by ₦100?
A. ₦80
B. ₦120
C. ₦160
D. ₦200
Question 6
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 20, what is the profit-maximizing price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 7
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase output by 20% while keeping labor cons\tant at 16 units, what percentage increase in capital is required?
A. 15%
B. 20%
C. 25%
D. 30%
Question 8
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's output is 100 units, and the price of labor is ₦10 per unit, and the price of capital is ₦20 per unit, what will be the firm's optimal input mix?
A. (10, 5)
B. (5, 10)
C. (15, 3)
D. (20, 2)
Question 9
A firm has a production function given by Q = 2L + 3K. If the firm's labor and capital \costs are ₦10 and ₦20 respectively, what is the firm's profit-maximizing input bundle?
A. L = 5, K = 3
B. L = 3, K = 5
C. L = 2, K = 4
D. L = 4, K = 2
Question 10
A country's GDP is ₦100 billion. If the country's net factor income from abroad is ₦10 billion, what is the country's GNP?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 11
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is 20, what is the firm's optimal price?
A. 20
B. 30
C. 40
D. 50
Question 12
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. x = 200, y = 0
B. x = 100, y = 50
C. x = 50, y = 100
D. x = 0, y = 200
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. What is the firm's output when labor (L) is 16 and capital (K) is 9?
A. 24
B. 36
C. 48
D. 60
Question 14
A country's GDP is ₦100 billion. If the country's net factor income from abroad is ₦10 billion, what is the country's GNP?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 15
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. Find the profit-maximizing price and quantity.
A. P = 40, Q = 60
B. P = 30, Q = 70
C. P = 20, Q = 80
D. P = 50, Q = 50

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: