POST UTME BELLS UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government imposes a tax of ₦10 on a firm's output. The firm's supply curve is given by Q = 100 - 2P. What is the new supply curve after the tax?
A. Q = 100 - 2P
B. Q = 100 - 2\( P + 10 \)
C. Q = 100 - 4P
D. Q = 100 - 6P
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue (MR) function is given by MR = 200 - 2Q. Find the profit-maximizing price and quantity.
A. P = ₦50, Q = 25
B. P = ₦75, Q = 12.5
C. P = ₦100, Q = 0
D. P = ₦200, Q = 50
Question 3
A monopolist's marginal revenue curve will be
A. Less steep than the demand curve
B. More steep than the demand curve
C. Parallel to the demand curve
D. Perp\endicular to the demand curve
Question 4
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor and K is capital. If the firm's current labor and capital inputs are 16 and 9 respectively, what is the marginal product of capital?
A. 1/4
B. 1/2
C. 1
D. 2
Question 5
A firm's average total \cost curve will be at its minimum point when the marginal \cost curve intersects the
A. Average variable \cost curve
B. Average fixed \cost curve
C. Marginal revenue curve
D. Marginal product of labor curve
Question 6
A central bank is considering a monetary policy to reduce inflation. The inflation rate is given by the equation \( π = 2 + 0.1Y \), where (Y) is the level of economic activity. If the central bank wants to reduce the inflation rate to 2%, what level of economic activity is required?
A. \( Y = 100 \)
B. \( Y = 200 \)
C. \( Y = 300 \)
D. \( Y = 400 \)
Question 7
In a perfectly competitive market, the demand curve for a firm's product is horizontal and the supply curve is upward-sloping. What is the equilibrium price and quantity of the product?
A. \( P = 10, Q = 100 \)
B. \( P = 20, Q = 50 \)
C. \( P = 15, Q = 75 \)
D. \( P = 25, Q = 25 \)
Question 8
A government's budget can be classified into three main components: revenue, exp\enditure, and
A. Surplus
B. Deficit
C. Capital formation
D. Transfer payments
Question 9
A firm's supply curve is given by Q = 2P, where Q is quantity supplied and P is price. If the firm's current price is 10, what is the quantity supplied?
A. 10
B. 20
C. 30
D. 40
Question 10
A country's GDP is calculated by adding up the value of all final goods and services produced within its borders, including
A. Imports
B. Exports
C. Intermediate goods
D. Capital goods
Question 11
A firm is considering investing in a new project. The project has a net present value (NPV) of ₦1,500,000. If the \cost of capital is 10%, what is the internal rate of return (IRR) of the project?
A. 12%
B. 15%
C. 18%
D. 20%
Question 12
A firm is considering investing in a new project with a payback period of 5 years. If the firm's \cost of capital is 12%, what is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%
Question 13
A consumer has a utility function U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 50, and the prices of the two goods are $2 and $5 respectively, what is the consumer's optimal bundle of goods?
A. (5,5)
B. (10,0)
C. (0,10)
D. (7.5,2.5)
Question 14
A firm's production function is given by Q = 2L^2 + 3K. If the firm's \cost function is C(L,K) = 2L + 3K, what is the firm's marginal \cost and marginal product of labor?
A. MC = 4L, MP_L = 4L
B. MC = 2L, MP_L = 4L
C. MC = 4L, MP_L = 2L
D. MC = 2L, MP_L = 2L
Question 15
Consider a production function with returns to scale. If the production function is homogeneous of degree 2, what is the implication for the production function's behavior as the input factors increase?
A. The production function will exhibit increa\sing returns to scale.
B. The production function will exhibit cons\tant returns to scale.
C. The production function will exhibit decrea\sing returns to scale.
D. The production function will exhibit no returns to scale.

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: