POST UTME BELLS UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm in Nigeria is considering two different production techno\logies for its manufacturing process. The first techno\logy has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit produced. The second techno\logy has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit produced. If the firm produces 1,000 units, what is the total \cost of each techno\logy?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 2
A firm's production function is given by \( Q = 2L + 3K \), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input is 10 units and its capital input is 5 units, what is the quantity produced?
A. 20
B. 25
C. 30
D. 35
Question 3
A firm's production function is given by \( Q = 100K^{\frac{1}{2}}L^{\frac{1}{2}} \). If the firm's \cost function is \( C = 20K + 30L \), what is the firm's profit-maximizing level of output?
A. \( 10^2 \)
B. \( 10^3 \)
C. \( 10^4 \)
D. \( 10^5 \)
Question 4
A firm's production function is given by \( Q = 100K^{\frac{2}{3}}L^{\frac{1}{3}} \). If the firm's \cost function is \( C = 20K + 30L \), what is the firm's profit-maximizing level of output?
A. \( 10^3 \)
B. \( 10^4 \)
C. \( 10^5 \)
D. \( 10^6 \)
Question 5
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
A. (200, 100)
B. (150, 150)
C. (100, 200)
D. (50, 250)
Question 6
A consumer's utility function is given by U(x, y) = 2x + 3y. The consumer's budget constraint is 2x + 3y = 12. U\sing the method of substitution, find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 6, y = 0
Question 7
A Nigerian firm is considering investing in a new project. The project has a fixed \cost of ₦50 million and a variable \cost of ₦20 per unit produced. The firm expects to sell 10,000 units at a price of ₦50 per unit. What is the minimum rate of return on investment required for the firm to accept the project?
A. 10%
B. 15%
C. 20%
D. 25%
Question 8
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is ₦50, what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 10
A firm's \cost function is given by the equation \( C = 2L + 3K \). If the firm's labor is 20 units and capital is 30 units, what is the firm's total \cost?
A. 100
B. 200
C. 300
D. 400
Question 11
A consumer's utility function is given by U = 2x + 3y, where U is utility, x is the quantity of good x, and y is the quantity of good y. If the consumer's budget is ₦1,000 and the prices of good x and good y are ₦100 and ₦200 respectively, what is the value of the consumer's utility?
A. 100
B. 200
C. 300
D. 400
Question 12
A country's economic growth is often hindered by the scarcity of resources. Which of the following is a correct example of an opportunity \cost in this scenario?
A. The \cost of importing goods from another country
B. The \cost of investing in renewable energy
C. The \cost of producing a good that could have been produced with the same resources
D. The \cost of hiring more workers
Question 13
A consumer's indifference curve is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of goods?
A. x = 100, y = 200
B. x = 150, y = 150
C. x = 200, y = 100
D. x = 250, y = 50
Question 14
A consumer's utility function is given by ( U(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (100, 50)
B. (200, 20)
C. (50, 100)
D. (150, 75)
Question 15
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 labor and capital are 100 and 400 respectively, what is the value of the firm's output?
A. 100
B. 200
C. 400
D. 800

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