POST UTME BABCOCK UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 and quantity?
A. P = 50, Q = 25
B. P = 40, Q = 30
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 2
A firm's \cost function is given by the equation C(Q) = 2Q^2 + 10Q + 100, where C(Q) is the total \cost and Q is the quantity produced. If the firm's revenue function is given by the equation R(Q) = 3Q^2 - 5Q + 50, what is the firm's profit-maximizing quantity?
A. Q = 5
B. Q = 10
C. Q = 15
D. Q = 20
Question 3
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the optimal quantities of x and y.
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 4
A firm is operating in a perfectly competitive market with a demand curve given by Qd = 100 - 2P and a supply curve given by Qs = 2P. Find the equilibrium price and quantity.
A. ₦50, 50 units
B. ₦75, 25 units
C. ₦100, 0 units
D. ₦200, 100 units
Question 5
A central bank increases the money supply by 10%. What is the effect on the price level?
A. Price level increases by 10%
B. Price level decreases by 10%
C. Price level remains unchanged
D. Price level increases by 20%
Question 6
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output and L and K are the inputs. If the firm's \cost function is given by the equation C(L, K) = 2L + 3K, what is the firm's \cost-minimizing input combination?
A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 9
D. L = 9, K = 16
Question 7
A country's balance of payments is given by the following equation: BOP = X - M - \( I - S \). If the country's exports (X) are ₦100 billion, imports (M) are ₦80 billion, and the difference between investment (I) and saving (S) is ₦20 billion, what is the balance of payments?
A. ₦20 billion surplus
B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, find the number of machines (K) required.
A. 4
B. 6
C. 8
D. 10
Question 9
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output and L and K are the inputs. If the firm's \cost function is given by the equation C(L, K) = 2L + 3K, what is the firm's \cost-minimizing input combination?
A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 9
D. L = 9, K = 16
Question 10
A firm has a production function Q = 2L^2 + 3K. The wage rate is $10 and the rental rate is $5. What is the firm's profit-maximizing level of capital?
A. K = 2
B. K = 3
C. K = 4
D. K = 5
Question 11
A firm's revenue function is given by the equation R(Q) = 3Q^2 - 5Q + 50, where R(Q) is the total revenue and Q is the quantity sold. If the firm's \cost function is given by the equation C(Q) = 2Q^2 + 10Q + 100, what is the firm's profit-maximizing quantity?
A. Q = 5
B. Q = 10
C. Q = 15
D. Q = 20
Question 12
A country's GNP is ₦120 billion, its imports are ₦80 billion, and its exports are ₦60 billion. What is its balance of trade?
A. ₦20 billion deficit
B. ₦20 billion surplus
C. ₦40 billion deficit
D. ₦40 billion surplus
Question 13
A country's balance of payments (BOP) accounts can be in equilibrium even if its current account is not in equilibrium. Explain.
A. The country is experiencing a trade deficit.
B. The country is experiencing a trade surplus.
C. The country's capital account is offsetting the current account deficit.
D. The country's current account is in equilibrium.
Question 14
A firm has a production function Q = 2L^2 + 3K. The wage rate is $10 and the rental rate is $5. What is the firm's profit-maximizing level of labor?
A. L = 2
B. L = 3
C. L = 4
D. L = 5
Question 15
A firm's \cost function is given by C = 100 + 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the new \cost function equation?
A. C = 100 + 2.4L + 3.45K
B. C = 100 + 2.4L + 3.15K
C. C = 100 + 2.2L + 3.45K
D. C = 100 + 2.2L + 3.15K

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