POST UTME BABCOCK UNIVERSITY 2022 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is operating on a long-run average \cost curve. If it increases its output from 100 units to 200 units, what happens to its average \cost per unit?
Question 2
A country's inflation rate is 5% per annum. If the price of a commodity is ₦100 today, what will be the price of the commodity after 2 years?
Question 3
The Nigerian economy has experienced a period of rapid growth, resulting in an increase in the s\tandard of living for many citizens. However, this growth has also led to an increase in income inequality. Which of the following is a potential consequence of this growth?
Question 4
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's marginal revenue (MR) is 50, what is its price?
Question 5
A firm's budget constraint is given by 2L + 3K = ₦1,200. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the value of L when K = 3?
Question 6
The Nigerian government has implemented a policy to reduce inflation by increa\sing interest rates. However, this policy has also led to a decrease in aggregate demand, resulting in a recession. Which of the following is a potential consequence of this policy?
Question 7
A bank has a reserve requirement of 20% and a cash reserve of ₦100 million. If it wants to increase its l\ending by ₦50 million, what will be the new cash reserve?
Question 8
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, what is the total \cost of producing 16 units of output?
Question 10
A monopolist faces a demand curve with the following equation: Q = 100 - 2P. If the firm's marginal \cost is 10, what is the profit-maximizing price?
Question 11
A consumer's indifference curves are given by the equation u(x, y) = x^0.5y^0.5. If the consumer's initial \endowment is (x0, y0) = (4, 9), what is the consumer's optimal bundle?
Question 12
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. If a country imports goods worth ₦100 billion and exports goods worth ₦120 billion, what will be the balance of trade?
Question 13
A country's GNP at market price is ₦1,800 billion, and its GNP at factor \cost is ₦1,700 billion. What is the value of net factor income from abroad?
Question 14
The government of Nigeria has implemented a policy to increase the production of textiles. The demand function for textiles is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
Question 15
A consumer's utility function is given by U = 2x + 3y. If the price of good x is ₦50 and the price of good y is ₦75, what is the budget constraint equation?
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