POST UTME BABCOCK UNIVERSITY 2025 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A country is experiencing a trade deficit. Which of the following is a possible consequence of this trade deficit?
Question 2
A country's GDP is ₦1 trillion, and its GNP is ₦1.1 trillion. What is the net factor income from abroad?
Question 3
A country's inflation rate is given by the equation I = \( P_2 - P_1 \) / P_1, where I is inflation rate, P_1 is the previous year's price level, and P_2 is the current year's price level. If the previous year's price level is 100 and the current year's price level is 120, what is the inflation rate?
Question 4
The concept of diminishing marginal utility is closely related to the
Question 5
The concept of scarcity is closely related to the
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases from 100 units to 120 units and capital increases from 100 units to 120 units, what is the new output?
Question 7
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's exports increase by 15% and imports decrease by 10%, while foreign investment increases by 20% and domestic investment remains cons\tant, what is the percentage change in the balance of payments?
Question 8
A country's agricultural sector is characterized by a high degree of price elasticity of supply. What is the likely effect of a price increase on the quantity supplied?
Question 9
Consider a firm that produces a \single product u\sing labor and capital. The production function is given by \( Q = 2L^0.5K^0.5 \), where ( Q ) is output, ( L ) is labor, and ( K ) is capital. If the firm's revenue function is \( R = 100Q \) and the \cost function is \( C = 20L + 10K \), what is the firm's profit-maximizing level of labor?
Question 10
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price is ₦50, what is the quantity demanded?
Question 11
A country is experiencing an economic downturn, and the government is considering implementing a fiscal policy to stimulate the economy. Which of the following fiscal policies would be most effective in stimulating the economy?
Question 12
The concept of opportunity \cost is closely related to the
Question 13
A country's balance of payments is in equilibrium when the current account and capital account are equal. If the current account is a deficit of ₦100 billion and the capital account is a surplus of ₦150 billion, what is the balance of payments?
Question 14
A country's supply function is given by Q = 100 + 2P, where Q is quantity supplied and P is price. If the country's price increases by 20%, what is the percentage change in quantity supplied?
Question 15
A firm is considering investing in a new project. The project has a \cost of $100,000 and is expected to generate a revenue of $150,000. What is the net present value (NPV) of the project?
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