POST UTME BELLS UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is $100 million and the value of imports is $80 million, what is the balance of payments?
A. $20 million
B. $30 million
C. $40 million
D. $50 million
Question 2
A country's GDP is ₦10 trillion, and its GNP is ₦12 trillion. If the country has a net factor income from abroad of ₦1.5 trillion, what is its net domestic product?
A. ₦8.5 trillion
B. ₦9 trillion
C. ₦9.5 trillion
D. ₦10 trillion
Question 3
A country's balance of payments is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is $80 million and the value of imports is $60 million, what is the balance of payments?
A. $20 million
B. $30 million
C. $40 million
D. $50 million
Question 4
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm's revenue function is R(q) = 20q, what is the firm's profit function?
A. P(q) = 18q^2 + 10q + 5
B. P(q) = 18q^2 + 10q - 5
C. P(q) = 18q^2 - 10q + 5
D. P(q) = 18q^2 - 10q - 5
Question 5
A country's balance of payments is given by the following equation: BOP = X - M - \( I - S \). If the country's exports are X = 100, imports are M = 50, and the current account deficit is \( I - S \) = 20, what is the balance of payments?
A. ₦30
B. ₦20
C. ₦10
D. ₦40
Question 6
A firm's demand function is given by Q = 100 - 2P. If the firm's supply function is Q = 2P - 10, what is the firm's equilibrium price and quantity?
A. P = ₦20, Q = 30
B. P = ₦30, Q = 40
C. P = ₦40, Q = 50
D. P = ₦50, Q = 60
Question 7
The Marshall-Lerner condition states that if the sum of the elasticities of demand for exports and imports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. Which of the following is a correct interpretation of the Marshall-Lerner condition?
A. A devaluation of the currency will lead to a decrease in imports and an increase in exports.
B. A devaluation of the currency will lead to an increase in imports and a decrease in exports.
C. A devaluation of the currency will lead to an improvement in the balance of payments if the sum of the elasticities of demand for exports and imports is greater than 1.
D. A devaluation of the currency will lead to a decrease in exports and an increase in imports.
Question 8
A firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price elasticity of demand is calculated at a point where the quantity demanded is 60 units, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 9
A government imposes a tax of ₦10 per unit on a firm producing a homogeneous product. If the firm's supply curve is given by Q = 2P - 20 and the market demand curve is given by Qd = 100 - 2P, what is the new equilibrium price and quantity?
A. \( P = 30, Q = 40 \)
B. \( P = 20, Q = 60 \)
C. \( P = 10, Q = 80 \)
D. \( P = 40, Q = 30 \)
Question 10
A firm is producing a good with a production function Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm increases labor from 100 to 120 units and capital from 100 to 120 units, what will be the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
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 price?
A. ₦120
B. ₦150
C. ₦180
D. ₦200
Question 12
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 10 units of output, what is the total \cost of production?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 13
A firm's supply curve is given by Q = 2P + 10, where Q is the quantity supplied and P is the price. If the price elasticity of supply is calculated at a point where the quantity supplied is 30 units, what is the price elasticity of supply?
A. 0.5
B. 1
C. 2
D. 3
Question 14
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = $100, what is the consumer's optimal bundle of goods?
A. x = 20, y = 10
B. x = 30, y = 20
C. x = 40, y = 30
D. x = 50, y = 40
Question 15
A firm's demand curve is given by the equation Q = 100 - 2P, where P is the price. If the firm's marginal revenue (MR) is 200 - 4P, what is the firm's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125

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