POST UTME BELLS UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 100, and its marginal \cost (MC) is 80, what is the firm's optimal output level?
A. 100 units
B. 120 units
C. 150 units
D. 200 units
Question 2
The government of a country imposes a tax on a particular commodity. The demand function for the commodity is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the tax is ₦20 per unit, find the price at which the quantity demanded is 60 units.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 3
Suppose 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 supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 4
The concept of scarcity in economics implies that the production of one good is at the expense of another. What is the opportunity \cost of producing more wheat in Nigeria?
A. The opportunity \cost is the value of the next best alternative good that could have been produced.
B. The opportunity \cost is the value of the next best alternative good that could have been consumed.
C. The opportunity \cost is the value of the next best alternative good that could have been traded.
D. The opportunity \cost is the value of the next best alternative good that could have been invested.
Question 5
A firm has a \cost function given by C = 100 + 2Q, where C is the total \cost and Q is the quantity produced. If the firm produces 50 units, find the total revenue.
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 6
The GDP of a country is ₦100 billion. If the population is 20 million, what is the per capita GDP?
A. ₦5,000
B. ₦10,000
C. ₦20,000
D. ₦50,000
Question 7
A country's GNP is given by the equation GNP = GDP + (net factor income from abroad), where GDP is the country's GDP and net factor income from abroad is the difference between the country's earnings from abroad and its payments to foreigners. If the country's GDP is $100 billion and its net factor income from abroad is $10 billion, what is the country's GNP?
A. $110 billion
B. $120 billion
C. $130 billion
D. $140 billion
Question 8
A firm's production function is given by Q = 2L^2 + 5K, 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, find the output.
A. 50
B. 75
C. 100
D. 125
Question 9
A monopolist faces a demand curve with an elasticity of -3. If the firm increases its price by 5%, what is the percentage change in quantity demanded?
A. -15%
B. -12%
C. -10%
D. -8%
Question 10
A firm's revenue function is given by R(x) = 3x^2 - 5x + 2. If the firm produces 15 units of the product, what is the total revenue?
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,100
Question 11
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 0.5, find the price at which the quantity demanded is 60 units.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 4 units of labor and 9 units of capital, what is the total product of labor?
A. 8
B. 16
C. 32
D. 64
Question 13
A firm's demand function is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply function is given by Qs = 2P - 50, where Qs is the quantity supplied, find the elasticity of demand at the equilibrium price.
A. 0.5
B. 1
C. 2
D. 3
Question 14
A firm in Nigeria has a total revenue of ₦1,500 and a total \cost of ₦1,200. What is the profit of the firm?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 15
A firm is facing a downward-sloping demand curve with a cons\tant elasticity of -1.5. If the firm's marginal revenue (MR) is 120, and its marginal \cost (MC) is 100, what is the firm's optimal price level?
A. ₦1,000
B. ₦1,200
C. ₦1,500
D. ₦2,000

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