POST UTME BELLS UNIVERSITY 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases by 25% and capital (K) remains cons\tant, what is the percentage change in output (Q)?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
The money supply in a country is given by the equation M = 1000 + 0.5Y. If the money supply is currently ₦5000, what is the level of income?
A. ₦10000
B. ₦5000
C. ₦2000
D. ₦1000
Question 3
A consumer's indifference curve is given by the equation U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 20, y = 10
B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25
Question 4
A firm's \cost function is given by the equation C(x) = 100 + 2x^2, where x is the number of units produced. If the firm's revenue function is R(x) = 200x - x^2, what is the firm's profit function?
A. P(x) = -x^2 + 200x
B. P(x) = x^2 + 200x
C. P(x) = -x^2 - 200x
D. P(x) = x^2 - 200x
Question 5
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's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 20, y = 10
B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25
Question 6
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's supply function is given by Q = 2P + 50, what is the equilibrium price and quantity?
A. (₦25, 75)
B. (₦50, 100)
C. (₦75, 125)
D. (₦100, 150)
Question 7
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $25 billion. What is its GDP at market price?
A. $105 billion
B. $110 billion
C. $115 billion
D. $120 billion
Question 8
The concept of scarcity implies that the production of one good is at the expense of another. What is the opportunity \cost of producing more of a particular good?
A. The value of the next best alternative good
B. The price of the good being produced
C. The quantity of the good being produced
D. The income of the consumer
Question 9
The marginal propensity to consume (MPC) is the change in consumption when income changes by one unit. If the MPC is 0.8, what is the change in consumption when income increases by ₦100?
A. ₦80
B. ₦120
C. ₦160
D. ₦200
Question 10
A country's GDP at market price is ₦100 billion. If the GDP deflator is 120, what is the GDP at cons\tant price?
A. ₦83.33 billion
B. ₦83.33 billion
C. ₦83.33 billion
D. ₦83.33 billion
Question 11
A consumer has a budget of ₦1000 and faces the following prices for two goods: Good X \costs ₦200 and Good Y \costs ₦300. If the consumer buys 2 units of Good X, what is the opportunity \cost of buying 1 unit of Good Y?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 12
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's marginal revenue (MR) is 80, what is the value of x?
A. 10
B. 20
C. 30
D. 40
Question 13
A country's GNP is $150 billion, its imports are $30 billion, and its exports are $35 billion. What is its GNP at market price?
A. $155 billion
B. $160 billion
C. $165 billion
D. $170 billion
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) and capital (K) both increase by 25%, what is the percentage change in output (Q)?
A. 25%
B. 50%
C. 75%
D. 100%
Question 15
A firm's revenue function is given by R = 100P - 2P^2, where P is price. If the firm's price is $10, what is its marginal revenue?
A. $80
B. $90
C. $100
D. $110

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