POST UTME BELLS UNIVERSITY 2019 Economics | Objective

Are you preparing for POST UTME BELLS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: Open Market Operations (OMO), Reserve Requirements, and Moral Suasion. Which of the following is NOT a monetary policy tool used by the CBN?
Correct A. Fiscal Policy
B. Monetary Policy
C. Supply-Side Policy
D. Demand-Side Policy

Correct Answer: A

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Question 2
A consumer's indifference curve is downward sloping and convex to the origin. What is the nature of the consumer's preferences?
A. Cardinal Utility
Correct B. Ordinal Utility
C. Diminishing Marginal Utility
D. Increa\sing Marginal Utility

Correct Answer: B

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Question 3
The demand for a commodity is said to be elastic if the percentage change in the quantity demanded is greater than the percentage change in the price. What is the price elasticity of demand for a commodity with an elasticity of 2?
A. -2
B. 0
C. 1
Correct D. 2

Correct Answer: D

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Question 4
The government of Nigeria has implemented a policy to increase the production of rice in the country. What is the likely effect of this policy on the price of rice?
A. Increase
Correct B. Decrease
C. No change
D. Uncertain

Correct Answer: B

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Question 5
The Central Bank of Nigeria (CBN) has implemented a policy to reduce inflation by increa\sing the reserve requirements of commercial banks. What is the likely effect of this policy on the money supply?
A. Increase
Correct B. Decrease
C. No change
D. Uncertain

Correct Answer: B

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Question 6
A monopolist faces a market demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the profit-maximizing price and quantity?
A. P = 40, Q = 30
Correct B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15

Correct Answer: B

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Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the \cost-minimizing combination of labor and capital?
Correct A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 100
D. L = 100, K = 200

Correct Answer: A

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Question 8
A consumer's utility function is given by U = 2x + 3y. The prices of x and y are ₦10 and ₦20 respectively. What is the consumer's budget constraint?
Correct A. 10x + 20y = 100
B. 10x + 20y = 200
C. 10x + 20y = 300
D. 10x + 20y = 400

Correct Answer: A

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Question 9
A government is considering a tax on a firm's output. The firm's supply curve is given by Q = 100 - 2P. The government wants to collect ₦1000 per unit of output. What is the new supply curve?
A. Q = 100 - 4P
Correct B. Q = 100 - 6P
C. Q = 100 - 8P
D. Q = 100 - 10P

Correct Answer: B

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Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the \cost-minimizing combination of labor and capital?
Correct A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 100
D. L = 100, K = 200

Correct Answer: A

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Question 11
A perfectly competitive firm's supply curve is a rec\tangular hyperbola. What is the shape of the firm's marginal \cost (MC) curve?
A. U-shaped
Correct B. L-shaped
C. Horizontal
D. Vertical

Correct Answer: B

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Question 12
A country's GDP is ₦1.2 trillion. Its imports are ₦400 billion, and its exports are ₦300 billion. What is its balance of trade?
A. ₦100 billion surplus
Correct B. ₦100 billion deficit
C. ₦200 billion surplus
D. ₦200 billion deficit

Correct Answer: B

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Question 13
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is ₦50. What is the profit-maximizing price?
A. ₦75
B. ₦80
Correct C. ₦85
D. ₦90

Correct Answer: C

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Question 14
A country's GNP is ₦1.5 trillion. Its GDP is ₦1.2 trillion. What is the country's net factor income from abroad?
Correct A. ₦300 billion
B. ₦200 billion
C. ₦100 billion
D. ₦50 billion

Correct Answer: A

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Question 15
A firm's total revenue (TR) is given by TR = 2Q^2 - 10Q + 20. The firm's marginal revenue (MR) is given by MR = 4Q - 10. What is the firm's profit-maximizing output?
A. 2 units
Correct B. 3 units
C. 4 units
D. 5 units

Correct Answer: B

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