POST UTME BELLS UNIVERSITY 2017 Economics | Objective

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Question 1
The concept of scarcity in economics implies that the total demand for a product exceeds its total supply, leading to a shortage. Which of the following is a correct example of scarcity?
Correct A. A drought in a region leading to a shortage of water
B. An increase in the demand for a product due to a successful marketing campaign
C. A decrease in the supply of a product due to a natural disaster
D. An increase in the supply of a product due to an improvement in techno\logy

Correct Answer: A

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Question 2
A country's GDP is calculated as the sum of all final goods and services produced within its borders. Which of the following is NOT included in the calculation of GDP?
Correct A. Imports
B. Exports
C. Government sp\ending
D. Depreciation of capital assets

Correct Answer: A

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Question 3
A diagram of a simple circuit is shown below. What is the total resis\tance of the circuit?
Correct A. R1 + R2
B. R1 - R2
C. R1 * R2
D. R1 / R2

Correct Answer: A

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Question 4
A country's balance of payments is a statistical statement that summarizes all economic transactions between a country and the rest of the world over a specific period of time. Which of the following is a component of the balance of payments?
A. Current account
B. Capital account
C. Financial account
Correct D. All of the above

Correct Answer: D

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Question 5
A diagram of a simple agricultural production process is shown below. What is the main input used in this process?
A. Soil
Correct B. Seeds
C. Water
D. Fertilizers

Correct Answer: B

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Question 6
A firm's total revenue (TR) 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 the total revenue?
Correct A. ₦1,800
B. ₦1,600
C. ₦1,400
D. ₦1,200

Correct Answer: A

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Question 7
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
Correct C. x = 15, y = 15
D. x = 25, y = 5

Correct Answer: C

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Question 8
A monopoly firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal \cost is 10, find the price and quantity that will maximize profit.
Correct A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20

Correct Answer: A

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Question 9
A firm's \cost function is given by C(x) = 100 + 2x^2, where x is the number of units produced. If the firm produces 20 units, what is the total \cost?
A. ₦1,400
B. ₦1,600
Correct C. ₦1,800
D. ₦2,000

Correct Answer: C

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Question 10
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
Correct C. 40
D. 50

Correct Answer: C

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Question 11
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?
Correct A. -20%
B. -10%
C. 0%
D. +10%

Correct Answer: A

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Question 12
A consumer has a utility function given by u(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
Correct A. (100, 200)
B. (200, 100)
C. (150, 150)
D. (250, 50)

Correct Answer: A

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Question 13
A firm is producing a good with a production function given by Q = 2L^0.5K^0.5. If the firm's techno\logy is such that it can increase labor by 10% and decrease capital by 10%, what is the percentage change in output?
A. -10%
B. 0%
Correct C. +5%
D. +10%

Correct Answer: C

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Question 14
A perfectly competitive market has a demand curve with elasticity of -2 and a supply curve with elasticity of 2. If the market is initially in equilibrium at a price of ₦10, what is the percentage change in quantity demanded if the price increases by 10%?
A. -20%
Correct B. -10%
C. +10%
D. +20%

Correct Answer: B

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Question 15
A consumer has a budget constraint given by 2x + 3y = 12. If the consumer's utility function is given by u(x,y) = 2x + y, what is the consumer's optimal bundle?
Correct A. (3, 2)
B. (2, 3)
C. (4, 1)
D. (1, 4)

Correct Answer: A

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Question 16
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
Correct C. ₦350
D. ₦450

Correct Answer: C

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Question 17
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
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 18
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the net factor income from abroad?
Correct A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

Correct Answer: A

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Question 19
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?
Correct A. ₦45 billion
B. ₦50 billion
C. ₦55 billion
D. ₦60 billion

Correct Answer: A

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Question 20
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
Correct B. ₦1500
C. ₦2000
D. ₦2500

Correct Answer: B

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Question 21
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
Correct A. 20%
B. 30%
C. 40%
D. 50%

Correct Answer: A

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Question 22
A consumer's utility function is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the optimal bundle of goods that the consumer will choose?
Correct A. x = 50, y = 100
B. x = 100, y = 50
C. x = 150, y = 25
D. x = 200, y = 0

Correct Answer: A

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Question 23
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
Correct C. 30
D. 35

Correct Answer: C

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Question 24
A firm is producing a good u\sing two inputs, labor and capital. The production function 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 opportunity \cost of producing one more unit of output?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 25
The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied when the price increases by 10%?
Correct A. 20%
B. 30%
C. 40%
D. 50%

Correct Answer: A

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