POST UTME BELLS UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
B. L-shaped
C. Horizontal
D. Vertical
Question 2
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
C. ₦85
D. ₦90
Question 3
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
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 4
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?
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 100
D. L = 100, K = 200
Question 5
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
B. 3 units
C. 4 units
D. 5 units
Question 6
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?
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 100
D. L = 100, K = 200
Question 7
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
B. Q = 100 - 6P
C. Q = 100 - 8P
D. Q = 100 - 10P
Question 8
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
B. Decrease
C. No change
D. Uncertain
Question 9
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
B. Ordinal Utility
C. Diminishing Marginal Utility
D. Increa\sing Marginal Utility
Question 10
A country's GNP is ₦1.5 trillion. Its GDP is ₦1.2 trillion. What is the country's net factor income from abroad?
A. ₦300 billion
B. ₦200 billion
C. ₦100 billion
D. ₦50 billion
Question 11
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?
A. 10x + 20y = 100
B. 10x + 20y = 200
C. 10x + 20y = 300
D. 10x + 20y = 400
Question 12
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?
A. Fiscal Policy
B. Monetary Policy
C. Supply-Side Policy
D. Demand-Side Policy
Question 13
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
B. ₦100 billion deficit
C. ₦200 billion surplus
D. ₦200 billion deficit
Question 14
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
D. 2
Question 15
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
B. Decrease
C. No change
D. Uncertain

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