POST UTME BOWEN UNIVERSITY 2017 Economics | Objective

Are you preparing for POST UTME BOWEN UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Consider a perfectly competitive market with 5 firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the likely effect on the market supply curve if the government imposes a tax on the firms?
A. The supply curve shifts to the left.
Correct B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve becomes vertical.

Correct Answer: B

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Question 2
A firm's marginal revenue (MR) and marginal \cost (MC) curves are given by the equations MR = 100 - 2q and MC = 50 + q. If the firm is currently producing 10 units of output, what is the likely effect on the firm's profit-maximizing output level if the government imposes a tax of ₦10 per unit?
A. The firm will increase its output level.
Correct B. The firm will decrease its output level.
C. The firm's output level will remain unchanged.
D. The firm will shut down.

Correct Answer: B

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Question 3
Consider a country that exports 100 units of a commodity and imports 50 units of another commodity. If the country's GDP is ₦100 billion and its GNP is ₦120 billion, what is the likely effect on the country's balance of payments (BOP) if the country's exchange rate appreciates by 10%?
A. The BOP will improve.
Correct B. The BOP will worsen.
C. The BOP will remain unchanged.
D. The BOP will become zero.

Correct Answer: B

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Question 4
A monopolist faces a demand curve given by the equation Qd = 100 - 2P. If the firm's marginal \cost (MC) is cons\tant at ₦20 per unit, what is the likely effect on the firm's profit-maximizing price and output level if the government imposes a tax of ₦5 per unit?
Correct A. The firm's price will increase and output will decrease.
B. The firm's price will decrease and output will increase.
C. The firm's price will remain unchanged and output will increase.
D. The firm's price will increase and output will remain unchanged.

Correct Answer: A

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Question 5
Consider a country that has a GDP of ₦100 billion and a GNP of ₦120 billion. If the country's population is 20 million and its GDP per capita is ₦5,000, what is the likely effect on the country's GDP per capita if the country's GNP increases by 10%?
Correct A. The GDP per capita will increase.
B. The GDP per capita will decrease.
C. The GDP per capita will remain unchanged.
D. The GDP per capita will become zero.

Correct Answer: A

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Question 6
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 sells 20 units, what is the total revenue?
A. ₦2000
Correct B. ₦1800
C. ₦2200
D. ₦1600

Correct Answer: B

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Question 7
A government imposes a tax of ₦10 per unit on a firm's output. If the firm's supply function is Q = 100 - 2P, where P is the price per unit, what is the new supply function after the tax is imposed?
Correct A. Q = 100 - 2\( P + 10 \)
B. Q = 100 - 2P - 10
C. Q = 100 - 2\( P - 10 \)
D. Q = 100 - 2P + 10

Correct Answer: A

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Question 8
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 budget constraint is 2x + 3y = 30, what is the optimal combination of x and y?
Correct A. x = 6, y = 4
B. x = 4, y = 6
C. x = 3, y = 5
D. x = 5, y = 3

Correct Answer: A

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Question 9
A firm's \cost function is given by C(x) = 100 + 2x^2, where x is the number of units produced. If the firm produces 10 units, what is the total \cost?
A. ₦200
B. ₦220
Correct C. ₦240
D. ₦260

Correct Answer: C

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Question 10
A government's budget constraint is given by G = T + I, where G is government exp\enditure, T is tax revenue, and I is interest payment. If the government's tax revenue is ₦100, interest payment is ₦50, and government exp\enditure is ₦150, what is the budget deficit?
A. ₦50
Correct B. ₦100
C. ₦150
D. ₦200

Correct Answer: B

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Question 11
A firm's average \cost curve is given by \( AC = \frac{100}{x} + 10 \), where ( x ) is the number of units produced. If the firm produces 20 units, what is the average \cost?
A. ₦5
Correct B. ₦10
C. ₦15
D. ₦20

Correct Answer: B

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Question 12
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the net factor income from abroad?
A. ₦10 billion
B. ₦20 billion
Correct C. ₦30 billion
D. ₦40 billion

Correct Answer: C

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Question 13
A firm's production function is given by \( Q = 2L^2 + 3K^2 \), where ( L ) is labor and ( K ) is capital. If the firm uses 10 units of labor and 5 units of capital, what is the output?
A. 50
B. 75
Correct C. 100
D. 125

Correct Answer: C

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Question 14
A country's national income is ₦100 billion, and its population is 20 million. What is the per capita income?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 15
A firm's demand function is given by \( Q = 100 - 2P \), where ( P ) is the price. If the price is ₦20, what is the quantity demanded?
A. 40
Correct B. 50
C. 60
D. 70

Correct Answer: B

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Question 16
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10 + 2Q. Find the profit-maximizing price and quantity.
A. ₦200, 50 units
Correct B. ₦300, 75 units
C. ₦400, 100 units
D. ₦500, 125 units

Correct Answer: B

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Question 17
A firm's total revenue is given by TR = 100Q - 2Q^2. The firm's total \cost is given by TC = 50Q + 10Q^2. Find the firm's profit-maximizing output.
A. 20 units
Correct B. 30 units
C. 40 units
D. 50 units

Correct Answer: B

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Question 18
A consumer's utility function is given by U = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 30. Find the consumer's optimal bundle of x and y.
Correct A. x = 5, y = 5
B. x = 10, y = 0
C. x = 0, y = 10
D. x = 5, y = 10

Correct Answer: A

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Question 19
A country's GDP is given by GDP = 100 + 2Y + 3C. The country's GNP is given by GNP = 120 + 2Y - 3C. Find the country's GDP minus its GNP.
Correct A. ₦20
B. ₦30
C. ₦40
D. ₦50

Correct Answer: A

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Question 20
A firm's demand curve is given by Q = 100 - 2P. The firm's supply curve is given by Q = 2P. Find the equilibrium price and quantity.
A. ₦200, 50 units
Correct B. ₦300, 75 units
C. ₦400, 100 units
D. ₦500, 125 units

Correct Answer: B

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Question 21
The demand for a commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
Correct A. 5%
B. 10%
C. 15%
D. 20%

Correct Answer: A

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Question 22
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Qx = 10L^0.5K^0.5, where Qx is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. If the price of good X is ₦100 and the price of good Y is ₦200, and the firm's budget constraint is 100L + 200K = ₦1000, what is the optimal combination of labor and capital that the firm should use?
Correct A. L = 10, K = 5
B. L = 5, K = 10
C. L = 20, K = 2
D. L = 15, K = 3

Correct Answer: A

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Question 23
The government of a country imposes a tax on a particular good, which increases the price of the good by 20%. If the demand for the good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price, what is the new demand equation after the tax is imposed?
Correct A. Qd = 80 - 2P
B. Qd = 90 - 2P
C. Qd = 100 - 4P
D. Qd = 110 - 2P

Correct Answer: A

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Question 24
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. If the firm's \cost function is given by C = 50Q + 10Q^2, what is the firm's profit function?
Correct A. π = 50Q - 12Q^2
B. π = 150Q - 12Q^2
C. π = 200Q - 12Q^2
D. π = 250Q - 12Q^2

Correct Answer: A

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Question 25
The government of a country imposes a subsidy on a particular good, which decreases the price of the good by 15%. If the supply of the good is given by the equation Qs = 100 + 2P, where Qs is the quantity supplied and P is the price, what is the new supply equation after the subsidy is imposed?
A. Qs = 90 + 2P
B. Qs = 95 + 2P
Correct C. Qs = 105 + 2P
D. Qs = 110 + 2P

Correct Answer: C

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