POST UTME AFE BABALOLA UNIVERSITY 2023 Economics | Objective

Are you preparing for POST UTME AFE BABALOLA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2023 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Determine the equilibrium price and quantity of a commodity in a perfectly competitive market, given the following supply and demand equations: Qd = 100 - 2P and Qs = 50 + 3P.
A. ₦200, 150 units
Correct B. ₦300, 200 units
C. ₦400, 250 units
D. ₦500, 300 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A farmer in Nigeria plans to cultivate 100 hectares of maize. If the price of maize is ₦10,000 per ton, and the \cost of production is ₦8,000 per ton, what is the farmer's profit per ton?
A. ₦2,000
Correct B. ₦3,000
C. ₦4,000
D. ₦5,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
U\sing the concept of elasticity of demand, determine the price elasticity of demand for a commodity with a demand equation Qd = 100 - 2P, given that the price of the commodity increases by 10%.
A. 0.5
Correct B. 1.0
C. 1.5
D. 2.0

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A consumer has a utility function U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the goods are ₦5 and ₦10 respectively, and the consumer's income is ₦100, determine the optimal quantities of the goods consumed.
A. x = 10, y = 20
Correct B. x = 20, y = 10
C. x = 30, y = 5
D. x = 5, y = 30

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
U\sing the concept of agricultural development, explain the role of irrigation in increa\sing crop yields in Nigeria.
Correct A. Irrigation increases crop yields by providing a stable water supply.
B. Irrigation increases crop yields by reducing the risk of drought.
C. Irrigation increases crop yields by increa\sing the fertility of the soil.
D. Irrigation increases crop yields by reducing the \cost of production.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A firm's demand function is given by Q = 100 - 2P + 5Y, where Q is the quantity demanded, P is the price, and Y is the income. If the price elasticity of demand is -2, what is the price elasticity of demand with respect to income?
A. 5
Correct B. -5
C. 10
D. -10

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A government imposes a tax of ₦10 on every unit of a good. The supply function is given by Q = 2P - 5. What is the new supply function after the tax is imposed?
Correct A. Q = 2P + 15
B. Q = 2P - 5
C. Q = 2P - 15
D. Q = 2P + 5

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the goods are ₦5 and ₦10 respectively, and the consumer's income is ₦100, what is the consumer's optimal bundle?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 3, y = 15

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2, where Q is the quantity produced. If the firm produces 20 units, what is the total \cost?
A. ₦500
B. ₦600
Correct C. ₦700
D. ₦800

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A government imposes a tax of ₦5 on every unit of a good. The demand function is given by Q = 100 - 2P. What is the new demand function after the tax is imposed?
A. Q = 100 - 2P
Correct B. Q = 100 - 2P - 10
C. Q = 100 - 2P + 10
D. Q = 100 - 2P - 5

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
The opportunity \cost of producing one more unit of a good is the value of the next best alternative that must be given up. If a firm is producing at a point where the marginal product of labor is 4 units and the wage rate is ₦200 per unit, what is the opportunity \cost of producing one more unit of the good?
A. ₦800
Correct B. ₦400
C. ₦600
D. ₦1000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A country's balance of payments (BOP) accounts are a statistical record of all economic transactions between residents and non-residents over a specific period. Which of the following is NOT a component of the BOP?
A. Current Account
B. Capital Account
C. Financial Account
Correct D. Goods and Services Account

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 5 units of the good, what is the total \cost of production?
A. ₦125
B. ₦150
Correct C. ₦175
D. ₦200

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A government imposes a tax on a particular good. The supply curve shifts to the left, and the demand curve shifts to the right. What is the effect on the equilibrium price and quantity?
Correct A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A country's GDP is ₦10 trillion, and its GNP is ₦12 trillion. What is the net factor income from abroad?
Correct A. ₦2 trillion
B. ₦1 trillion
C. ₦0.5 trillion
D. ₦0.1 trillion

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
Consider a country with a GDP of ₦10 trillion, a GNP of ₦12 trillion, and a population of 200 million. Calculate the GDP per capita in naira.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, find the optimal bundle of x and y.
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A country's balance of payments account is given by:\n\nImports: ₦500 billion\nExports: ₦700 billion\nTransfer payments: ₦200 billion\nForeign investment: ₦300 billion\n\nCalculate the current account balance.
Correct A. ₦200 billion surplus
B. ₦300 billion deficit
C. ₦400 billion surplus
D. ₦500 billion deficit

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A central bank increases the money supply by ₦100 billion. If the velocity of money is 5, calculate the increase in the price level.
A. 2%
Correct B. 3%
C. 4%
D. 5%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A government wants to increase its GDP by 10% within the next 5 years. If the current GDP is ₦5 trillion, calculate the required annual growth rate.
A. 2%
Correct B. 3%
C. 4%
D. 5%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 100, what is its marginal \cost (MC)?
A. 50
B. 75
Correct C. 100
D. 125

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A country's GDP is 100 billion naira. Its imports are 20 billion naira, and its exports are 15 billion naira. What is its balance of payments?
Correct A. -5 billion naira
B. 0 billion naira
C. 5 billion naira
D. 10 billion naira

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases by 10% and its capital (K) remains cons\tant, what is the percentage change in output (Q)?
A. -5%
Correct B. -10%
C. 0%
D. 5%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A country's GNP is 120 billion naira. Its GDP is 110 billion naira. What is the value of net factor income from abroad?
A. 5 billion naira
B. 10 billion naira
Correct C. 15 billion naira
D. 20 billion naira

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is 200, what is its price (P)?
A. 25
B. 30
Correct C. 35
D. 40

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

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:
Chat with Support