POST UTME BELLS UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2, where C is \cost and Q is output. If the firm produces 100 units of output, what is the total \cost?
A. ₦2500
B. ₦3000
C. ₦3500
D. ₦4000
Question 2
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. ₦1800
B. ₦2000
C. ₦2200
D. ₦2400
Question 3
A firm's \cost function is given by C(x) = 2x^2 + 5x + 10. If the firm produces 20 units, what is the total \cost?
A. ₦150
B. ₦250
C. ₦350
D. ₦450
Question 4
A consumer's demand curve for a good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the consumer's income is 100, and the price of the good is 20, find the quantity demanded.
A. 20
B. 30
C. 40
D. 50
Question 5
A consumer's utility function is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer has a budget constraint of 100, and the prices of the two goods are 2 and 3 respectively, find the optimal quantities of the two goods to consume.
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 25, y = 5
Question 6
A diagram of a simple agricultural production process is shown below. What is the main input used in this process?
A. Soil
B. Seeds
C. Water
D. Fertilizers
Question 7
The production function for a firm is given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the maximum output that the firm can produce?
A. 20
B. 25
C. 30
D. 35
Question 8
A monopolistically competitive firm faces a demand curve with elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?
A. -20%
B. -10%
C. 0%
D. +10%
Question 9
A diagram of a simple circuit is shown below. What is the total resis\tance of the circuit?
A. R1 + R2
B. R1 - R2
C. R1 * R2
D. R1 / R2
Question 10
A government imposes a tax on a good, which leads to a decrease in the quantity demanded of the good. The tax revenue is used to finance a public good. Which of the following is a correct statement about the effect of the tax on the deadweight loss?
A. The deadweight loss increases.
B. The deadweight loss decreases.
C. The deadweight loss remains the same.
D. The deadweight loss becomes negative.
Question 11
The demand function for a product is given by p = 100 - 2x. If the price elasticity of demand is 0.5, what is the value of x?
A. 20
B. 30
C. 40
D. 50
Question 12
A farmer produces 100 units of wheat, with a price of ₦10 per unit. If the farmer's opportunity \cost of producing wheat is ₦5 per unit, what is the farmer's total revenue?
A. ₦1000
B. ₦1500
C. ₦2000
D. ₦2500
Question 13
The Marshall-Lerner condition states that if the sum of the elasticities of demand for exports and imports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. Which of the following is a correct interpretation of the Marshall-Lerner condition?
A. A devaluation will lead to an increase in exports and a decrease in imports.
B. A devaluation will lead to a decrease in exports and an increase in imports.
C. A devaluation will lead to an increase in exports and an increase in imports.
D. A devaluation will lead to a decrease in exports and a decrease in imports.
Question 14
A government is planning to invest ₦50 billion in a new infrastructure project. If the project has a 10% rate of return, what is the present value of the project?
A. ₦45 billion
B. ₦50 billion
C. ₦55 billion
D. ₦60 billion
Question 15
A country's export supply function is given by X = 100 + 2P - 3Y, where X is exports, P is the price of the exported good, and Y is the country's income. If the price of the exported good decreases by 15% and the country's income increases by 10%, what is the percentage change in exports?
A. 5%
B. 0%
C. -5%
D. -10%

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