POST UTME BELLS UNIVERSITY 2024 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 price of labor increases by 20% and the price of capital increases by 15%, what will be the effect on the firm's output?
A. Output will increase by 10%
B. Output will decrease by 10%
C. Output will remain the same
D. Output will fluctuate
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor?
A. 1/2
B. 1/4
C. 1/8
D. 1/16
Question 3
A country's GDP at market price is ₦1,500,000 and the implicit deflator is 1.2. What is the GDP at cons\tant price?
A. ₦1,250,000
B. ₦1,500,000
C. ₦1,750,000
D. ₦2,000,000
Question 4
The demand for a product is given by Qd = 100 - 2P and the supply is given by Qs = 2P. If the equilibrium price is 20, what is the consumer surplus?
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 5
A consumer's utility function is given by U = 2X + 3Y. If the consumer's income is ₦1000 and the prices of the two goods are ₦2 and ₦3 respectively, what will be the consumer's optimal bundle?
A. X = 200, Y = 100
B. X = 150, Y = 150
C. X = 100, Y = 200
D. X = 50, Y = 250
Question 6
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's current labor and capital inputs are 16 and 9 units respectively, what is the firm's current output?
A. 32
B. 64
C. 128
D. 256
Question 7
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm's current labor and capital inputs are 16 and 9 units respectively, what is the marginal product of labor?
A. 1/2
B. 1/4
C. 1/8
D. 1/16
Question 8
A firm's demand for labor is given by the equation Q = 100L^0.5, where Q is the quantity of labor demanded and L is the wage rate. If the wage rate is ₦50 per hour, how many hours of labor will be demanded?
A. 10 hours
B. 20 hours
C. 30 hours
D. 40 hours
Question 9
A country's balance of payments (BOP) accounts are given below. What is the country's net foreign exchange earnings?
A. ₦100m
B. ₦200m
C. ₦300m
D. ₦400m
Question 10
A central bank increases the money supply by 10%. What will be the effect on the price level, assuming a cons\tant velocity of money?
A. No effect
B. Increase of 5%
C. Increase of 10%
D. Increase of 15%
Question 11
A country's GDP grows at a rate of 5% per annum, while its population grows at a rate of 2% per annum. What is the rate of growth of per capita income?
A. 3%
B. 4%
C. 5%
D. 6%
Question 12
A firm's \cost function is given by C = 2L + 3K. If the firm's current labor and capital inputs are 10 and 5 units respectively, what is the firm's current total \cost?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 13
A firm is facing a trade-off between \cost minimization and revenue maximization. If the firm's \cost function is C(q) = 2q^2 + 10q and the revenue function is R(q) = 3q^2 - 2q, what is the optimal quantity to produce?
A. q = 1
B. q = 2
C. q = 3
D. q = 4
Question 14
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's current labor and capital inputs are L = 4 and K = 9, respectively, what is the marginal product of capital?
A. \( \frac{1}{2} \sqrt{\frac{L}{K}} \)
B. \( \sqrt{\frac{K}{L}} \)
C. \( \frac{1}{2} \sqrt{\frac{K}{L}} \)
D. \( \frac{L}{2K} \)
Question 15
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 2x + 3y = 12, and the prices of the two goods are p_x = 2 and p_y = 3, respectively, what is the consumer's optimal bundle of goods?
A. ( (x, y) = (3, 2) )
B. ( (x, y) = (2, 3) )
C. ( (x, y) = (4, 1) )
D. ( (x, y) = (1, 4) )

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